India’s power minister R.K. Singh has said that the government has decided to invite bids for 50 GW of renewable energy capacity annually from the financial year 2023-24 till 2027-28. These annual bids for setting up renewable energy capacity connected to the inter-state transmission system will also include wind projects of at least 10 GW per year.
The plan was finalized by the Ministry of New & Renewable Energy (MNRE) at a meeting chaired by the power minister and is in accordance with India’s target of achieving 500 GW of installed electricity capacity from non-fossil fuel (renewable energy + nuclear) sources by 2030.
India has installed a cumulative renewable energy capacity of 168.96 GW as of Feb. 28, 2023. This includes 64.38 GW of solar power, 51.79 GW hydro, 42.02 GW wind, and 10.77 GW bio power. About 82 GW is under various stages of implementation and about 41 GW is under tendering stage.
Considering that renewable energy (RE) projects take around 18-24 months for commissioning, the bid plan will add 250 GW of renewable energy and ensure 500 GW of installed capacity by 2030. The Ministry of Power is already working on upgrading and adding the transmission system capacity for evacuating 500 GW of electricity from non-fossil fuel sources.
The minister said, “The structured bidding trajectory will provide sufficient time to the RE developers to plan their finances, develop their business plans and manage the supply chain more efficiently.”
B.S. Bhalla, Secretary, MNRE, said that the bidding trajectory will also enable the power procurers, including the distribution companies, to manage their RE procurement plans effectively. “The bid trajectory will also provide a fillip to the RE manufacturing industry in the country by indicating the demand that would be created for their equipment,” Bhalla added.
The power ministry has also declared a quarterly bid plan for FY 2023-24, which comprises bids for at least 15 GW of renewable energy capacity in each of the first and second quarters of the financial year, and at least 10 GW in each of the third and fourth quarters.
This capacity addition is over and above the RE capacities that would come up under schemes like rooftop solar and PM-KUSUM.
Presently, Solar Energy Corp. of India Ltd. (SECI), NTPC, and NHPC are the government-notified renewable energy implementing agencies (REIAs) to invite bids. The ministry has decided to also notify SJVN Ltd, a public sector enterprise under the Government of India, as an REIA.
The targeted bid capacity for FY 2023-24 would be allocated among the four REIAs. The REIAs would be permitted to bring out the bids for solar, wind, solar-wind hybrid, round-the-clock renewable power, etc with or without storage as per their assessment of the RE market or as per directions from the government.
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