US-based First Solar to make solar panels in India, says energy secretary: Report

US-based solar manufacturing company First Solar is set to invest "billions of dollars" for solar panel production in India that will not source materials from China, a media report said, citing US energy secretary Jennifer Granholm. Moreover, the minister indicated that Tesla is in discussions for investing in India.

"India brings in the notion of scale, and the US' contribution is laboratories and efforts we are making to incentivise production. That combination helps both to achieve their goals," Granholm told The Economic Times, while noting the funding from the US Development Finance Corporation for the renewables sector.

Granholm was in New Delhi for the India-US Strategic Clean Energy Partnership meet on July 18. Reportedly, the minister stated that Tesla also is in talks with the Indian government, when asked about the carmaker's plans to invest in India.

Last month, Prime Minister Narendra Modi, during his state visit to the United States, had met Tesla CEO Elon Musk. During their meet, Musk commended the Prime Minister for urging Tesla to make significant investments in the country. He further emphasised their intention to pursue this opportunity, albeit with considerations regarding the appropriate timing.

Meanwhile, Granholm after meeting oil and gas minister Hardeep Puri, said, "India is one of our most essential partners in the clean energy transition."

The global energy transition -- the shift from fossil-based fuels such as oil and coal to renewable sources like wind and solar -- is estimated to become a USD 23-trillion market by 2030, Granholm said on Tuesday as American companies seek closer ties with Indian firms to tap this opportunity.

Speaking at the ministerial meeting of the US-India Strategic Clean Energy Partnership (SCEP), she said the US will have to add 2,000 gigawatts of clean energy to its electric grid by 2035 to meet the goal of using 100 per cent electricity from clean sources, PTI reported.

"So that means we have to do everything, everywhere, all at once. And so in order to do that, we have to partner and we've got to learn from those who are doing it well and can scale (up) really well," she said.

India has announced aims to reach net zero emissions by 2070 and to meet 50 per cent of its electricity requirements from renewable energy sources by 2030. It is targeting installing 500 gigawatts (GW) of renewable energy capacity, reducing the emissions intensity of its economy by 45 per cent, and cutting a billion tonnes of CO2.

These common goals provide scope for cooperation, which led to the setting up of the SCEP.

During the meeting on Tuesday, the sides noted the growing importance of bilateral energy cooperation between the countries while underscoring the critical importance of bilateral clean energy engagement and the achievements of the SCEP in strengthening energy security, creating opportunities for clean energy innovation, addressing climate change and creating employment generation opportunities.

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