Que: How do you interpret the shift from energy transition to energy sovereignty in the Indian context?

Ans: This evolution from energy transition to energy sovereignty in India is a clear sign of how the ecosystem is maturing. The previous phase was primarily driven by COP commitments, reducing solar costs and addressing the requirements of global climate challenges. This has allowed India to grow in the renewable sector in tandem with its development needs.

After 2022, the Russian-Ukrainian war has brought about new challenges in the form of existing dependencies. With the present west Asia crisis, the focus has further shifted from “how to transition” to “how to de-risk,” which has brought about the resilience in the overall value chain of energy. The focus has been on supply chain security and the development of end-to-end capabilities.

India is focusing on building the foundation of its energy systems to minimise dependencies.

Que: Have recent geopolitical developments altered the risk calculus for solar project execution? How real is the threat of project delays or cost escalations due to geopolitical tensions?

Ans: The present geopolitical changes have sharpened the risk calculation for solar execution rather than disrupting it, and it is showing high flexibility with the support of rapid scaling up of domestic manufacturing and localisation of the supply chain.

The recent proposal for ALMM List-III to include solar wafers and ingots will be a decisive step towards strengthening the domestic energy supply chain and the solar ecosystem along with the PLI schemes that has provided fillip to the sector facilitating solar developers to execute with more confidence. At the same time, the dynamic nature of the solar market is creating an expansion for export markets as well as building up domestic demand pipelines.

The geo-political scenario might have some near to mid-term impact but overall sentiment for the sectors is buoyant.

Que: With global solar supply chains heavily dominated by China, how should Indian developers navigate this dependency?

Ans: The strategy to de-risk China’s dependency in the solar markets in India has been more opportunity-driven and less reactive. We are making informed and well-thought-out decisions to ensure our markets are independent of China’s solar supply chain. Reiterating, the recent ALMM proposal is a positive step towards navigating the dependencies.

Developers can adapt to the changing scenario by aligning their projects with the ever-expanding Indian ecosystem, where the module and cell manufacturing capacities are expanding. The strategy would be to form early associations with the vertically integrated players, which will eventually benefit in the long run in terms of supply and cost stability. This segment also benefits from the technology collaborations in different geographies globally, which will open new avenues in the production segment.

Que: Do you think initiatives like ALMM and the PLI Scheme are sufficient to create long-term supply chain resilience, or is further intervention needed?

Ans: Needless to say, what ALMM and PLI are capable of, as they have already demonstrated what it means to make a strategic shift in the solar manufacturing sector in India, as module manufacturing capacity increases from 2.3 GW in 2014 to 120 GW in 2025, and cell manufacturing capacity increases to 29 GW. The perfect capitalisation of domestic capabilities is something to look forward to.

The other factor is that this progress is now being taken to the next level. The latest announcement on ALMM List-III, 1,200 projects under the National Critical Mineral Mission, and resource partnerships with countries all over the world are only adding more depth and breadth to this progress as India continues to march towards self-sufficiency in creating its own robust supply chain.

Que: How should developers balance the push for localisation with the need to maintain competitive tariffs?

Ans: The approach in striking a balance between localisation and competitive tariffs is more in the nature of a strategic optimisation for Indian developers.

The advantage here is in smart portfolio segmentation, where projects involving the government will have localisation, and flexibility in the C&I while open access segments will help in managing tariff competitiveness for the developer. Another aspect to note here is the growth in domestic manufacturing, where the fall in module costs indicates a narrowing cost differential.

As integrated players in the market move into manufacturing, which supplements supply, localisation is not just being driven by policy but is also becoming cost-efficient.

Que: Are lenders factoring in geopolitical and sourcing risks more actively today?

Ans: The sector needs to address the ongoing geopolitical crisis prudently which will include calibrating the sourcing risks as well.

Further, lenders need to also factor-in ways to improve the quality of capital flow into the sector. Geopolitical risks are gradually getting embedded within core credit assessments, much like interest rate or inflation considerations. This shift, we are sure is driving sharper discipline in lending, with capital increasingly directed toward projects that demonstrate diversified sourcing strategies and robust execution frameworks.

Que: Can India emerge as an alternative global manufacturing hub, and what will it take to get there?

Ans: For domestic players in the energy ecosystem, India clearly has the potential to become a credible alternative global manufacturing hub. The ‘China+1’ strategy has worked for the world in terms of better diversification. This is now providing a structural benefit for India.

The vision has largely been supported by the government’s strong policy push-through like ALMM, ALCM, and PLI schemes. This policy clarity and intent have helped in paving the way for scaling domestic capacity, helping reduce import dependence.

Developers are increasingly aligned with this vision, particularly as domestic manufacturing begins to deliver greater cost stability and globally benchmarked quality. As scale improves, Indian-made modules are becoming more competitive and bankable.