VSK Energy aims to establish vertically integrated solar manufacturing facilities, reducing dependence on foreign suppliers and promoting clean energy growth.
Solar module manufacturer and EPC solutions provider, Vikram Solar, has announced a strategic partnership with renewable energy investors, Phalanx Impact Partners and Das & Co., to establish a new joint venture called VSK Energy. The joint venture aims to invest up to $1.5 billion in developing vertically integrated solar manufacturing operations in the United States.
Vikram Solar brings its extensive manufacturing experience to the partnership, while Phalanx Impact Partners and Das & Co. provide financial support and expertise in the solar industry. The collaboration seeks to achieve its goals through two planned projects.
In the first phase, VSK Energy will invest $250 million to establish a solar photovoltaic module manufacturing facility in Brighton, Colorado, with an initial capacity of 2 GW. The facility, located at 76 Commerce Center, is expected to begin operations in 2024. This strategic decision to set up the manufacturing facility in Colorado aligns with the state’s focus on solar power generation and its goal of achieving 100% renewable energy by 2040. The investment by VSK Energy is anticipated to contribute to the state’s economy, create jobs, and strengthen the clean energy sector.
Moving to the second phase of investment, VSK Energy plans to develop a factory in a Southern U.S. state to produce solar ingots, cells, and wafers, completing its vertical integration. This factory aims to have an annual capacity of 4 GW, requiring an investment of up to $1.25 billion. The operationalization of this facility is scheduled for 2025, pending evaluation and finalization of available incentives at the federal, state, regional, and local levels.
The engineering and construction of both phases of VSK Energy’s investment will be overseen by Mortenson, a renowned solar engineering, procurement, construction, and commercial contracting firm. One of the key objectives of VSK Energy is to establish a robust solar panel and equipment supply chain within the U.S., thereby reducing dependence on foreign suppliers that currently dominate the solar market.
Sriram Das, Co-Chairman of VSK Energy and Managing Director of Das & Co., expressed his enthusiasm for the venture, highlighting the significance of the Inflation Reduction Act in advancing the clean energy future of the United States. Das emphasized the importance of this investment in achieving solar technology self-sufficiency, bolstering America’s energy security, promoting large-scale solar deployment, and symbolizing a commitment to America’s clean energy future through collaboration between leaders from the United States and India.
The joint venture formation was facilitated by global law firms Dentons, McDermott Will & Emery, and Reed Smith.
Vikram Solar, based in India, is a prominent solar manufacturing and EPC company with over 3.5 GW of solar manufacturing capacity in India and an EPC portfolio of 1.42 GW. This strategic partnership aligns with President Joe Biden’s vision, as last August, he signed the Inflation Reduction Act of 2022, which proposes $369.75 billion in energy security and climate change programs over the next decade.