Closely watching the impact of Chinese export controls: Waaree Energies Chairman

Hitesh Doshi- MD- Waaree Group

In an interview with Moneycontrol, Hitesh Doshi, Chairman and Managing Director of Waaree Energies Limited, discussed the company's strategic expansion plans, innovations in solar technology, and the challenges faced in the renewable energy sector. He touched upon how the company is navigating the impact of Chinese  export controls which asks companies not to supply goods below cost,  and Indian import restrictions vis a vis solar goods.

Doshi also spoke about the skill gap in the solar manufacturing industry,  and how the company is trying to address this. He also offered insights into Waaree’s plans for the green hydrogen space, and its prospects in the EV (electric vehicle) and energy storage sectors.

Waaree exports 44 percent of its modules and the US is one of its key markets. The company is planning to set up a 1.6 GW module facility in Houston.

Edited excerpts:

Q. The US is your top market, comprising around 58 percent of your exports. Are there any other regions you’re prioritising for expansion, apart from the US?

Doshi: We’ve recently opened an office in the Middle East and started work in the MENA (Middle East and North Africa) region. In Europe, there are heavy duties now, so we’ll be looking at that market once policies are in place.

Given the restrictions in countries like China and other Asian regions, we’re focusing on Free Trade Agreements (FTAs) and also seeking government support in certain countries.

Q: So, you’re focusing on regions with an anti-China sentiment?

Doshi: Yes, at present.

Q: What impact will the various measures being implemented by the Chinese government have on Chinese exports of solar goods? 

 Doshi: Today they released a statement that they will not approve any export that is below cost. They were selling it below cost, but now the Chinese government has intervened to stop that practice. We’re watching closely to see how this affects the market.

Q: Will this move affect the cost dynamics here?

Doshi: Not significantly. Chinese companies had driven prices down a lot, but now they have to bring it up at least to their cost of production, if they follow these regulations. We’ll have to wait a few weeks to gauge the full impact.

Q: With solar cell supply beginning this year, do you anticipate any import-related issues?

Doshi: Our module (manufacturing) capacity is 13 GW and the cell capacity coming online this year is only 5.4 GW. So we will be dependent on imports. Also, we are importing a lot of raw materials. The government has begun imposing duties on glass and aluminium, but we’re prepared with the local supply chain. There would be a problem only  if China decides to stop supply to India or other Asian countries.

Q: There appears to be a skill gap in the renewable sector, particularly in solar. How are you addressing this, especially as you scale?

Doshi: We anticipated this challenge. When we placed orders for equipment 1.5 to 2 years ago, training was part of the deal and our people have been travelling to China for the same. Now that the equipment is here, today we have more than 25 Chinese engineers at our factory, who are also training our team. The goal is to have an entirely Indian team managing operations, as we’ve done with solar panels. The idea is to have the Indian team take full control in about six months.

Q: Are these Chinese engineers focussed on solar cells? 

Doshi: Yes, they’re here specifically for solar cells.

Q: Are you experiencing any visa delays for these engineers?

Doshi: We did have issues for about a year, which delayed the cell facility’s operations. The government had stopped issuing visas. However, about four months ago, they resumed issuing them, particularly for the PLI (Production Linked Incentive) and other projects.

Q: Has visa scrutiny increased?
Doshi: Yes, there’s a lot more scrutiny, and the waiting period is quite long now.

Q: Do you have any collaborations in the EV sector, particularly for charging infrastructure?

Doshi: We have long-term relationships with our customers, and much of our growth comes from this base. While I can’t share too many details right now, we are supplying batteries for EVs, and we’re looking at further opportunities as we expand.

Q: You’re also working on a 1 GW green hydrogen project. Have you finalised the technology for this?

Doshi: Yes, we’ve been focussed on this vertical for about two years now. We’re moving forward with alkaline electrolysers under the PLI scheme.

Q: Would you consider combining green hydrogen  with solar projects?

Doshi: Absolutely. Companies producing green hydrogen will need solar energy, and we’re already supplying solar panels for these projects. We’ll also offer electrolysers for green hydrogen production.

Q: What’s the timeline for starting production of these electrolysers?

Doshi: We expect to begin production  within two years, according to PLI timelines.

Q: Are you applying for any new PLI schemes?

Doshi: Not at the moment. The current PLI is for batteries and hydrogen, but nothing new for solar.

Q: Can you share the timelines for your BESS (Battery Energy Storage System) projects?

Dohsi: We applied for the PLI but didn’t win it. However, we’re working on various technologies and expect to finalise them within the next two to three months.