Solar, renewable energy players see surge in inquiries as manufacturers, exporters seek alternatives

 By Aishwarya Nair & Shiladitya Pandit

Amid Iran war-led energy disruptions, solar firms are seeing a surge in interest from manufacturing units, cold chains, and exporters, as businesses look to shift to more reliable and secure energy sources, industry executives told Moneycontrol.

The war has disrupted the supply of gas and crude oil, which was trading at around $116 a barrel on March 30, up 60 percent since February  28 when the US and Israel attacked Iran.

Iran’s retaliatory strikes have led to gas shortages and a scramble for supplies across industries.

More than 170 factories in Gujarat’s Morbi industrial cluster had to cease operations due to a shortage of propane and natural gas supplies.

“We are seeing a clear shift in how power-intensive sectors are approaching solar. It is no longer only a sustainability decision; it is becoming central to energy security, cost visibility, and expansion planning,” EMMVEE Group president and chief executive officer Suhas Donthi said.

Much of this early activity typically begins through engineering, procurement, and construction (EPC) players and developers, before translating into module procurement, and these signals are strengthening, he said.

“Sectors such as data centres, manufacturing, warehousing, cold chains, and export-oriented industries are likely to move fastest as reliable and competitive power becomes a strategic requirement for them,” Donthi, whose company is a leading solar manufacturer, said.

Another industry source said some conversations are going on with the solar developers and would take a month or two to realise.

As of February, India had 266 gigawatt (GW) of installed renewable energy capacity, including large hydro, accounting for nearly 51 percent of total installed power capacity.

Solar power alone has grown nearly 50-fold over the past 12 years — from 3GW in 2014 to about 143GW in February.

Unreliable power is forcing businesses to fall back on costly fuel imports, driving up operational expenses.

Solar shines bright

Expanding open access and short-term power markets can enable procurement of cheaper renewable electricity and avoid these alternatives, an Institute for Energy Economics and Financial Analysis (IEEFA) report, released last week, said.

“While energy shocks are inevitable, their impact will depend on India’s preparedness — reducing reliance on imported fuels; building a flexible and domestic electricity system backed by resilient grids, storage, and green hydrogen; and securing critical minerals supply chains,” the report said.

Process industries such as steel, aluminium, pharmaceuticals and chemicals are also seeking to ramp up their renewable energy sourcing, either on-site or through the grid.

According to Siddharth Bhatia, MD of the independent power provider Oyster Renewable Energy, the Iran war will significantly greenify segments such as steel.

“We help our partners achieve sustainability goals by giving them green energy round-the-clock. I genuinely believe that the current situation in the Middle East has also helped fast-track some of our discussions, because people who were toying with the idea of moving to renewables have realised they need to do it sooner rather than later,” Bhatia said.

Renewable firms are also seeing some demand from the farming sectors amid fuel shortage worries.

“There is a notable increase in inquiries for solar pumps, particularly as replacements for existing diesel-powered machines, largely due to the current energy shortages and geopolitical issues,” said Vivek Gupta, chairman and Managing Director (CMD) of Oswal Pumps Ltd.

Farmers are increasingly turning to solar pumps to reduce dependence on government support and external energy sources, signalling a positive outlook for the solar pump industry this year.

Private energy players have also increased inquiries, seeking complete, end-to-end solar solutions, including solar module manufacturing and structure, he added.

This article has been republished from The Moneycontrol.