14 November 2024

Solar Power: A New Opportunity for India-Taiwan Ties

Anushka Saxena and Rakshith Shetty

India and Taiwan have a unique opportunity to forge a mutually beneficial partnership in the renewable energy sector, particularly in the solar power domain. Taiwan is home to major solar wafer producers like the TSEC Corporation and Green Energy Technology, which could significantly contribute to India’s ambitious renewable energy and battery research and development programs. The partnership also has the potential to create an offshore manufacturing base for Taiwan in India, enabling cheaper imports for quicker domestic deployment.

India aims to achieve 500 GW of installed electricity capacity from non-fossil fuel sources by 2030, with solar power expected to account for over 80 percent of this capacity. However, meeting this target could drive India’s annual solar photovoltaic (PV) import bill from the current $ 7 billion, to around $30 billion, with most imports coming from China. In this regard, India can find a partner in Taiwan to de-risk its sustainable energy supply chains from China’s market-distorting dumping practices.

Similarly, Taiwan aims to install 20 GW of solar PV plant capacity by 2025. However, the target seems elusive, given that the current installed capacity stands at only 5.8 GW. The Taiwanese government has relied on “feed-in” tariffs, which enable businesses and homes to produce their own electricity through renewable sources in a cost-effective manner. The gap between demand for solar and Taiwan’s goals for renewable energy, however, remains massive.

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