India’s annual clean power auctions grew 2.3 times to reach 59 GW (AC) in 2024. This was the second consecutive year in which India more than doubled its annual renewable auction volumes, says a new report by BloombergNEF.
Power producers are moving away from standalone solar and wind auctions to complex projects that combine wind, solar and energy storage systems.
The report states wind-solar hybrid auctions accounted for more than half of the complex auction volumes awarded in 2024. Peak power projects nearly tripled from 2023. Year 2024 also marked the first successful auction of a load-following complex tender in which generators are asked to meet a representative monthly electricity demand profile, on an hourly basis.
Solar tariffs fell marginally
The weighted average tariff in standalone solar auctions dipped 2% in 2024 to INR 2,597/MWh.
“A substantial fall in module prices – which account for up to 50% of utility-scale solar project costs – did not translate to a drop in tariffs of a similar magnitude. This indicates that bidders have built in some buffers to account for any rise in module prices due to import tariffs and a push toward higher local content in solar modules,” stated BloombergNEF.
The tariffs discovered in wind auctions rose by 13% to INR 3,607/MWh. “A rise in wind turbine costs and lower bidder turnout at auctions are the likely reasons for this increase in tariffs,” stated the report.
Hybrid auctions have seen tariffs climb every year from 2021 as developers consider the costs of both wind and solar technologies.
Avaada, JSW Energy and Adani Green were the top winners of India’s 2024 clean power auctions. The first two won more capacity than they had in any previous year. The top five winners (barring Juniper Green) are either entering or expanding equipment manufacturing. This vertical integration grants the independent power producer’s (IPP) operations team greater supply chain certainty, while its factories have assured demand from the pipeline of projects secured.
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