The government has decided to invite tenders for 50 GW of renewable energy capacity annually for the next five years, i.e. from financial year 2023-24 to financial year 2027-28. These annual ISTS (Inter-State Transmission) connected renewable energy capacity offers will also include the establishment of a minimum of 10 GW of wind power capacity per year.
The plan finalized by the Ministry of New and Renewable Energy (MNRE) in a meeting chaired by Minister for Power and NRE Shri R.K. Singh last week is in line with the Prime Minister’s announcement at COP26 to achieve 500 GW of installed electricity capacity from non-fossil fuel sources (renewable energy + nuclear energy) by 2030.
India currently has a total renewable energy capacity of 168.96 GW (as on 28 February 2023) with around 82 GW in various stages of implementation and around 41 GW in the tender stage. This includes 64.38 GW of solar power, 51.79 GW of hydropower, 42.02 GW of wind power and 10.77 GW of bio-power.
As renewable energy (RE) projects take around 18-24 months to come on stream, the bid plan will add 250 GW of renewable energy and deliver 500 GW of installed capacity by 2030. The Department of Energy is already working to upgrade and add transmission system capacity to evacuate 500 GW of electricity from non-fossil fuels.
Shri R. K. Singh, Union Minister for Power and NRE, said during the meeting that the Government’s announcement of the trajectory of short-term and long-term renewable energy capacity addition is a significant step towards achieving the target of 500 GW of non-fossil resources.
Fuel capacity by 2030 and towards a faster energy transition. “India has become one of the world leaders in the energy transition and this is evident in the growth we have achieved in renewable energy. We are committed to achieving the 500 GW target by 2030 and the bidding trajectory will provide further impetus towards this target.
A structured offering trajectory will give renewable developers ample time to plan their finances, develop business plans and manage their supply chain more efficiently. This is a unique opportunity for industry to invest in this sector,” said Shri Singh.
Shri B. S. Bhalla, Secretary, MNRE said that the bidding trajectory will also enable power contracting entities, including distribution companies, to effectively manage their renewable energy procurement plans. “The supply route will also provide a complement to the country’s renewable energy processing industry by indicating the demand that would be created for their equipment,” the MNRE secretary added.
In addition, the ministry announced a quarterly bid schedule for FY 2023-24, which includes bids for at least 15 GW of renewable energy capacity in each of the first and second quarters of the financial year (April-June 2023 and July-September 2023) and at least 10 GW in each the third and fourth quarters of the financial year (October–December 2023 and January–March 2024).
This capacity addition is over and above the RE capacities that would come under schemes like Rooftop solar and PM-KUSUM of the Ministry, under which bids are placed directly by various states and also capacities that may fall under the Open Access Rules.
Currently, Solar Energy Corporation of India Ltd. (SECI), NTPC Ltd. and NHPC Ltd. notified by the Government as Renewable Energy Implementation Agencies (REIAs) for submitting such bids. It has also been decided to notify SJVN Ltd, a public sector undertaking under the Government of India, as a REIA.
The target supply capacity for FY 2023-24 would be divided among the four REIAs. REIAs could submit bids for solar, wind, solar-wind hybrid, RTC RE power, etc. – all with/without storage, based on their assessment of the renewables market or as directed by the government.
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