VSK Energy announced a $1.5 billion investment in the US solar energy supply chain, which will begin developing a manufacturing facility in Colorado next year. The new venture aims to innovate India's extensive solar manufacturing operations in the US.
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ANKARA, TURKEY - DECEMBER 01: An employee works at the Turkish PV manufacturer Kalyon Solar Technologies ingot-to-module solar factory on December 01, 2021 in Ankara, Turkey.
Manufacturing Facility in Colorado
Newly-formed US-India joint venture VSK Energy revealed its first of two planned projects as an investment in the US solar energy supply chain worth $1.5 billion. According to a report from Electrek, VSK Energy will develop a vertically integrated solar manufacturing operation in Brighton, Colorado.
The $250 million facility will have the ability to hire new employees for over 900 direct positions and over 200 construction jobs, expected to operate in 2024 with an initial capacity of 2 gigawatts in solar PV modules and a planned expansion of 4 GW. This effort aims to leverage India's extensive solar manufacturing operations in the United States.
This effort was described by Colorado Governor Jared Polis as a "big deal" for the state, as it was able to attract the facility with its educated workforce and a central location near large solar markets in the United States.
Additionally, the state of Colorado offered VSK up to $9.1 million in tax credits for job offerings. Polis stated that the whole state is excited about this development as Colorado will be able to become a major manufacturing center for the renewable energy economy.
Utilizing IRA
VSK Energy's investment becomes the latest effort by an overseas manufacturer capitalizing on incentives in President Joe Biden's climate change law called the Inflation Reduction Act, to increase renewable energy production. Reuters reported that this also pushes the US to build a clean energy manufacturing sector to compete with China.
Co-Chairman Sriram Das stated that the passage of the IRA was a big part of their investment. "Through our partnership in VSK, we are taking a decisive step toward achieving solar technology self-sufficiency, fortifying America's energy security, and propelling large-scale solar deployment," he added.
VSK Energy is a joint venture between US and India, with India-based global solar module maker Vikram Solar and NY-based sustainability-focused private equity company Phalanx Impact Partners and Das & Co. The investment will and development company with solar holding would both be implemented in the United States and India.
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Meanwhile, Solar Industry Mag reported that the second phase of the investment would complete VSK's vertical integration of the solar manufacturing process. VSK plans to develop a factory in a southern state for it to be able to produce solar ingots, cells, and wafers, with a planned annual capacity of 4 GW.
Compared to its first phase, this is expected to come online in 2025 to follow the evaluation and finalization of available federal, state, regional, and local incentives for the development. The new manufacturing facility is also expected to create 1,500 new job opportunities and 1,000 construction jobs.
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