Monday August 20, 2018
Home Business Manufacturing...

Manufacturing polysilicon is the way for India’s solar aspirations

0
//
496
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

President Ram Nath Kovind Pays His Condolences to Former UN Chief Kofi Annan

Annan was awarded the Nobel Peace Prize jointly with the UN in 2001 "for their work for a better organised and more peaceful world".

0
India condoles former UN chief Kofi Annan's death.
India condoles former UN chief Kofi Annan's death. Flickr

India on Saturday condoled the death of former UN Secretary General and Nobel laureate Kofi Annan with President Ram Nath Kovind expressing his condolences to the former Ghanaian diplomat’s family and the UN community as a whole.

“Sorry to learn of the passing of former Secretary General of the United Nations Kofi Annan,” Kovind said on the Rashtrapati Bhavan Twitter handle.

“My condolences to his family and to the UN community,” he stated.

Annan, 80, died on Saturday in Switzerland after a short illness, with his wife and three children by his side.

“It is with immense sadness that the Annan family and the Kofi Annan Foundation announce that the former Secretary General of the UN and Nobel Peace Laureate, passed away peacefully on Saturday 18th August after a short illness,” his family said.

Kofi Annan
Annan was the first black African to take up the role of the world’s top diplomat, serving two terms from 1997 to 2006. Flickr

Annan was the first black African to take up the role of the world’s top diplomat, serving two terms from 1997 to 2006. He later served as the UN special envoy for Syria, leading efforts to find a peaceful solution to the conflict.

He also led a UN commission to investigate the Rohingya refugee crisis in Myanmar.

The Myanmar government led by Aung San Suu Kyi supported Annan’s recommendations on the crisis in the country’s Rakhine State.

Also Read: New AI Model to Identify the Risk of Heart Disease in Indians

Annan was awarded the Nobel Peace Prize jointly with the UN in 2001 “for their work for a better organised and more peaceful world”.

His tenure as the UN chief coincided with the Iraq war and the HIV/Aids pandemic. (IANS)