Select Page
waste-heat-recovery-img



Startup Insights

Can the PLI scheme work for wind power too as the government think it will for solar PV manufacturing?

Source : Livemint


Notes by Narsi

The PLI scheme in general provides large investors the comfort of financial and offtake security. To that extent, it should benefit any industry that has a fairly detailed upstream component that also requires significant investment.

But wind power upstream is somewhat different from that of solar PV. The number of parts that go into a wind turbine is far many more than those that go into solar panel production. Wind turbine manufacturing is a much older industry, and significant economies of scale may not be achieved as much as they can be for solar because a whole lot of the cost for wind turbines comes from the metals used to make the towers and the blades - I doubt that wind turbine OEMs plan to get into either of these themselves.

Wind turbine OEMs to a large extent have been assemblers, unlike solar PV where global integrated OEMs such as Jinko, JA & Longi actually do significant amounts of engineering & fabrication.

All these considered I’m not sure if a PLI scheme for wind will have the same positive effect like that for solar PV.

See all Insights from: Renewable Energy

Professions

  • Policy-making