Vikram Solar, an Indian module manufacturer, has joined forces with private equity firm Phalanx Impact Partners and venture capital company Das & Co. to establish a fully integrated solar manufacturing operation in the United States. The collaboration, named VSK Energy, is set to invest a total of $1.5 billion in two construction phases.
The first phase will involve the construction of a module assembly plant in Brighton, Colorado, with an initial investment of $250 million. Scheduled to commence operations in 2024, this phase will have an annual capacity of 2GW, with plans for future expansion up to 4GW.
Mortenson has been appointed as the engineering, procurement, and commercial contractor for both phases of the project. In the second phase, VSK Energy aims to achieve vertical integration of the solar manufacturing process by establishing a plant for the production of cells, ingots, and wafers. This facility, with an annual capacity of 4GW, will be located in a Southern US state, although the specific location has yet to be disclosed. The plant is projected to commence operations in 2025, requiring an investment of up to $1.25 billion.
Gyanesh Chaudhary, founder, chairman, and managing director at Vikram Solar, expressed enthusiasm for the joint venture, stating that the collaboration between their extensive solar manufacturing experience and the dedication of the VSK team to clean energy would drive innovation and efficiency in solar manufacturing within the United States.
The passing of the Inflation Reduction Act has prompted several international players to announce their intentions of establishing solar manufacturing plants in the US. Notable among them is Hanwha Solution, the parent company of Qcells, which plans to invest $2.5 billion in a fully vertically integrated solar manufacturing supply chain. Solar Module Super League member LONGi has partnered with renewables developer Invenergy to develop a module assembly plant in Ohio with an annual capacity of 5GW.
Sriram Das, co-chairman at VSK Energy and managing director at Das & Co., highlighted the significance of the Inflation Reduction Act for the clean energy future of the United States. He emphasized that the partnership with VSK Energy would contribute to achieving solar technology self-sufficiency, enhancing America's energy security, and facilitating large-scale solar deployment. Das expressed pride in bringing together leaders from both the United States and India to make this investment and commitment to America's clean energy future.
In India, Vikram Solar was among the recipients of capacity in the second round of the Production Linked Incentive (PLI) program, securing 1GW of solar cells and module capacity.
