Wednesday January 24, 2018
Home Business Manufacturing...

Manufacturing polysilicon is the way for India’s solar aspirations

0
//
438
Republish
Reprint

By Bhupesh Verma

Delhi: The Jawaharlal Nehru National Solar Mission (JNNSM), the biggest driving force for the growth of the solar industry, has helped the country to increase its capacity from a meager 18 MW in 2010 to 4 GW in 2015.

The BJP government announced a revised 100 GW target by 2022, a big jump from an earlier 20 GW. To achieve this, the country needs to maintain a cumulative annual growth rate (CAGR) of around 50 percent in annual installations. These targets provide a great opportunity for the Indian solar photovoltaic (PV) industry to evolve as a global leader in manufacturing.

Based on current prices, we estimate that the crystalline Silicon (c-Si) PV technology will contribute around 85-90 GW of the 100 GW target. In 2014, 35 GW of c-Si PV was installed globally, with China’s share being 9 GW.

The current global production about 300,000 tonnes per year and to manufacture 85 GW of c-Si PV cells, an estimated production of 450,000 tonnes of polysilicon will be required in the next seven years.

If India is to complete its goals, a vast demand can be predicted for c-Si PV panels and so for polysilicon in the next few years. China is a global leader in polysilicon manufacturing; itself imports polysilicon to meet its demand. This creates a major challenge in diverting a large share of the global production to India, therefore increasing module prices.

PV Manufacturing in India

The Center for Study of Science, Technology and Policy (CSTEP) has examined the supply chain of PV that consists of the production of metallurgical grade Silicon (MG-Si), polysilicon, ingot and wafer, and cell and module assembly. Among these, India owns only cell and module manufacturing capabilities; other upstream supply chain components are missing. The question is: Given our huge demand from the 100 GW target, should India go in for domestic polysilicon and wafer manufacturing?

Polysilicon price trends

Polysilicon is the basic raw substance used in manufacturing c-Si PV cells as well as integrated-circuit chips for the semi-conductor industry. Prior to 2006-07, a majority of the polysilicon production was consumed mostly by the semi-conductor industry. In 2006-07, the economic boom was accompanied by a significant increase in the demand for polysilicon by the solar industry, which resulted in several manufacturing facilities being set up. The recession in late 2008, along with over-production from new factories, caused a slump in the demand for polysilicon and consequently, prices plummeted from a peak of $475/kg (Rs.32,500) to $20/kg.

The low prices forced manufacturers into reducing material and energy wastes to stay competitive. Therefore, processes that are more efficient started being developed to make the technology cheaper. This has made the polysilicon industry financially more attractive again in recent years. It is difficult to speculate how these prices will change in future, especially with the increase in demand from India. Therefore, there is a case for some domestic manufacturing capability to protect against volatility in prices.

Polysilicon Manufacturing and Challenges

Polysilicon making is an energy-consuming procedure (60-100 kWh/kg) and needs consistent power sources for continuous operations. High power tariff and unreliable power supply make polysilicon manufacturing challenging in India.

There are three ways to manufacture polysilicon: Siemens process, Fluidized Bed Reactor (FBR) process and Upgraded Metallurgical Grade (UMG) process, with the deceasing order of purity levels – 9N-11N, 6N-9N, and 5N respectively. Solar applications require higher purity levels than 6N pure silicon whereas semiconductor applications need higher purity than 9N. The Siemens process consumes a larger amount of energy as compared to FBR; hence, its cost of production is higher.

Some of the production challenges include handling of materials such as Silane, which is explosive in nature followed by significant heat losses in the reactors.

The current economy of scale suggests that a 24,000 TPA developed plant is ideal and will cost about Rs.5,500 crore. The technology used is the Siemens process, producing about 3-4 GW of c-Si cells annually.

Such a large capital investment in this sector is considered risky by even big investors. Moreover, interest rates in India are relatively higher than in other countries. This makes depreciation and interest rate major cost components (50 percent-70 percent) in polysilicon manufacturing. However, labour costs (skilled and unskilled) in India are lower as compared to other countries and this may reduce the cost of production by 5-10 percent.

The way forward

Given our ambitious solar targets, it is practical to create at least some domestic polysilicon manufacturing capability. Private industry could form an association to venture into domestic manufacturing. The government should support such initiatives and the industry through various incentives (tax holidays, duty exemption and the like) and facilitate the industry by giving special incentives in the modified special incentive package scheme (M-SIPS). The government can also make commitments to investors to provide low-cost finance and low-tariff power similar to China.

An assured market demand with long-term purchase agreements will boost the domestic manufacturing industry, along with the development of a manufacturing cluster – a dedicated R&D facility – for continuous research on new, mature, and disruptive technologies. Continuous updates in enabling policies pertaining to the polysilicon manufacturing industry will prove to be highly beneficial for the sector” growth as well. (IANS)(Bhupesh Verma and Ganeshprasad Pavaskar are with CSTEP and they can be contacted atbhupeshv@cstep.in and ganeshprasad@cstep.in. The views expressed are those of CSTEP)

Click here for reuse options!
Copyright 2016 NewsGram

Next Story

India China’s Fight Over the Doklam Plateau Explained

Doklam or Donglang, is a disputed area between China and Bhutan located near their tri-junction with India

0
//
16
picture from- indiaopines.com

By Ruchika Verma

  • India and China have an old history of disputes
  • This time, the dispute is regarding the Dokplam Plateau
  • The area is of strategic importance for both the nations

Disputes between India and China are not at all uncommon. The rivalry between the two nations is famous. There have been several disputes between the two on the India-China border in past, and there seems to be no stopping for these disputes in the present or future, for that matter.

India and China have a n old history of repeated disputes. zeenews.india.com
India and China have an old history of repeated disputes. zeenews.india.com

In June 2017, the world witnessed yet another dispute arising between India and China. This time the dispute was about China building a road extending to Doklam Plateau, which both nations have been fighting over for years now.

Also Read: China is likely to get involved if India disrupts $46 billion China-Pakistan Economic Corridor

History of the dispute 

Doklam or Donglang (in Chinese), is a disputed area between China and Bhutan located near their tri-junction with India. India doesn’t directly claim the area but supports Bhutan’s claims on it.

India fits into the picture, as this plateau is an important area for India. Not only is Bhutan one of the biggest allies of India; China gaining access over the Doklam Plateau will also endanger India’s borders, making them vulnerable to attacks.

Dopkam plateau is an important area near India, China and Bhutan's borders.
Dopkam plateau is an important area near India, China and Bhutan’s borders.

Apart from the hostile history of the two nations, the Doklam Plateau is also important for India to maintain its control over a land corridor that connects to its remote northeastern States. China building a road through Doklam surely threatens that control.

A complete timeline of what happened in the recent Doklam Standoff 

On 16 June 2017, Chinese troops with construction vehicles and excavators began extending an existing road southward on the Doklam plateau, near India’s border. It was Bhutan which raised the alarm for India.

On 18 June 2017, India responded by sending around 270 Indian troops, with weapons and two bulldozers to evict the Chinese troops from Doklam.

On 29 June 2017, Bhutan protested against the construction of a road in the disputed territory.  According to the Bhutanese government, China attempted to extend a road in an area which is shared both Bhutan and India, along with China.

Between 30 June 2017 and 5 July 2017, China released multiple statements justifying their claim over the Doklam plateau. They cited reasons as to why the Doklam standoff wasn’t really needed. And how China has not intruded into India’s territory to incite the standoff.

On 19th July 2017, China asked India again to withdraw its troops from the Doklam. On 24th July 2017,  Chinese Foreign Minister Wang Yi, in his statement, asked India to withdraw and behave themselves to maintain peace.

India and China seem to never agree when it comes to their borders. BBC
India and China seem to never agree when it comes to their borders. BBC

Also Read: Why India Must Counter China’s High-Altitude Land Grab?

What followed till 16th August 2017 was China constantly alleging India of trying to create trouble. They accused India of trying to disturb the peace and not withdrawing the troops, even after repeated reminders. They also accused India of bullying.

India, however, kept quiet during the whole fiasco, only releasing a statement regarding their stand and position at the Doklam standoff.

On 28 August 2017, India and China finally announced that they had agreed to pull their troops back from the Doklam standoff. The withdrawal was completed on that very day.

On 7 September 2017, many media reports claimed that both nation’s troops have not left the site completely. They were still patrolling the area, simply having moved 150 meters away from their previous position.

On 9 October 2017, China announced that it is ready to maintain peace with India at the frontiers. India reacted in affirmative, the peace was established when Indian Defence Minister, Nirmala Sitharaman’s visited Nathu La.

The issue between the two nations may rise again. Pixabay
The issue between the two nations may rise again. Pixabay

The Doklam issue, for now, is resolved. However, given the history of disputes between India and China, it won’t be a surprise if the issue resurfaces again in near future.