Premier Energies Launches ₹11,000 Crore Solar Expansion Plan

RENEWABLES
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AuthorAnanya Iyer|Published at:
Premier Energies Launches ₹11,000 Crore Solar Expansion Plan
Overview

Premier Energies announced a ₹11,000 crore expansion to significantly boost its solar cell and module manufacturing capacity to over 10 GW each annually. This strategic move aims to meet burgeoning domestic demand and integrate upstream production of ingots and wafers, positioning the company as a major global renewable equipment player. Funding will come from IPO proceeds, debt, and internal accruals.

Massive Capacity Boost Planned

Premier Energies is embarking on a significant expansion, planning a ₹11,000 crore capital expenditure to more than double its annual solar cell and module manufacturing capacity. The company aims to reach 10.6 gigawatts (GW) for cells and 11.1 GW for modules, primarily to meet India's escalating domestic energy requirements.

Currently, Premier Energies produces 3.2 GW of cells and 5.1 GW of modules annually from its four units near Hyderabad. The expansion includes adding 7.4 GW of cell capacity in Andhra Pradesh and 6 GW of module capacity in Telangana. This strategic initiative aligns with the government's Approved List of Models and Manufacturers (ALMM) framework, reinforcing India's 'Make in India' vision for domestic solar production.

Funding Secured for Expansion

The ambitious expansion project is set to be funded through multiple channels. The company raised ₹1,300 crore via its Initial Public Offering (IPO) last year and has secured an additional ₹2,200 crore through debt financing from IREDA. The remaining capital will be sourced from internal accruals, providing a robust financial footing for the growth.

Premier Energies highlighted its strong market position with an existing order book exceeding ₹13,000 crore, ensuring near-term capacity utilization. The company has also previously exported cells to the United States market.

Strategic Backward Integration Underway

Beyond increasing cell and module output, Premier Energies intends to venture into the manufacturing of ingots and wafers. This backward integration step is crucial for establishing the company as one of the largest integrated renewable energy equipment manufacturers globally, outside of China. Such a move will enhance operational resilience and contribute to India's self-sufficiency goals in solar component production.

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