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Manufacturing polysilicon is the way for India’s solar aspirations

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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)

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‘Doodle 4 Google’ Opens Public Voting

The first edition of "Doodle 4 Google India" was held in 2009 and the theme was "My India"

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A Google logo is displayed at the entrance to the internet based company's offices in Toronto. VOA

Google on Tuesday opened public online voting for 20 children shortlisted for its annual ‘Doodle 4 Google’ competition.

The annual competition, announced early in August, encouraged creative, art-loving students across India to bring their imagination to life for the search engine giant’s logo.

This year’s theme was “what inspires you”. The doodle, incorporating letters G-o-o-g-l-e, were to be created using crayons, clay, water colours and graphic design.

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Representational Image of ‘Doodle for Google’. Flickr

From a beautiful sight at the beach to nature’s tiny creatures; India’s farmer community to the Indian folk music; space exploration to learning from animals; children drew their inspiration using crayons, clay and graphic designs, the tech giant said in a statement.

Of the 75,000 students, from Class 1 to 10, across the country who sent in their entries, more than 55 per cent were from non-metro cities, including Visakhapatnam, Bhopal, Jabalpur, Bareilly, Kottayam and Bhubaneswar.

Out of these, Google shortlisted 20 from five categories: Group 1 comprising students from Class 1 to 2; Group 2 with students from Class 3 to 4; Group 3 with students from Class 5 to 6; Group 4 with students from Class 7 to 8 and Group 5 with students from Class 9 to 10.

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A Google logo is seen at the company’s headquarters in Mountain View, California, VOA

The online voting, which began on Tuesday, will continue till November 6 (until 10 a.m.). People can cast their votes on the Doodle 4 Google 2018 voting page.

The doodle with the maximum votes will get featured on Google’s home page on Children’s Day that falls on November 14.

Also Read: Customers Having Airtel-Related Queries Will Now Be Answered By Google Assistant

The national winner would win a Rs 5 lakh college scholarship, a Rs 2 lakh technology package for their school, as well as a trip to the Google office in India, among other prizes, the company said.

The first edition of “Doodle 4 Google India” was held in 2009 and the theme was “My India”. (IANS)