India’s leading renewable power generation company, Goldman Sachs-promoted ReNew Power, announced its entry into solar manufacturing on Thursday. The company has indicated it will invest close to Rs 1,500-2,000 crore for a unit to manufacture two Gw of solar cells and modules.

The company said it is in discussions with several states to set up the unit.

In a public statement, ReNew Power said its foray into manufacturing will not only help it in backward integration but also provide it a better control over the supply chain for critical components.

The company said with the manufacturing unit, it now aims to be an “integrated renewable energy company with manufacturing, generation and transmission business under one roof”. Business Standard reported ReNew's foray into the power transmission sector and its plans to expand across the complete energy supply chain.

“India has grown into a big market for renewable energy and the time has come to reduce our dependence on imports and start domestic manufacturing of key components. ReNew Power is one of the biggest generators of renewable energy in India and the move to start manufacturing of solar modules and cells is a natural progression for us. I firmly believe that Atmanirbharta (self-reliance) in manufacturing will be key to the next phase of growth in the renewable sector,” Sumant Sinha, chairman and managing director, ReNew Power said.

In the statement, ReNew also said the manufacturing facility, apart from catering to its own generation business, will also meet the requirements of other clean energy companies in India.

“The domestic demand for solar cells and modules is expected to grow to 15 Gw next year. Domestic manufacturing of modules and cells within the country will help renewable energy players reduce dependence on imports from China, which currently accounts for almost 80 per cent of the world’s module production. The plant will be equipped to meet export requirements as well,” the statement noted.

ReNew Power has a total installed capacity of 5.4 Gw of solar and wind power. It also has 4.6 Gw of renewable power capacity under construction. Apart from Goldman Sachs, ReNew is backed by equity investors such as Tokyo-based JERA, Abu Dhabi Investment Authority, Canada Pension Plan Investment Board, and Global Environment Fund.