India plans to double its renewable energy capacity to 500GW by adding 50GW capacity each year for the next five years, the Ministry of New and Renewable Energy (MNRE) said on Wednesday. The government will invite bids for 50GW capacity from current fiscal till fiscal 2027-28.
“These annual bids of ISTS (Inter-State Transmission) connected renewable energy capacity will also include setting up of wind power capacity of at least 10GW per annum,” the ministry said in a statement.
The plan, finalized by MNRE at a meeting chaired by Union Minister for Power & NRE RK Singh last week, is in accordance with Prime Minister’s announcement at COP26, of achieving 500GW of installed electricity capacity from non-fossil fuel (renewable energy + nuclear) sources by 2030.
India currently has a total renewable energy capacity of 169GW (as on 28 February 2023) with about 82GW at various stages of implementation and about 41GW under tendering stage. This includes 64GW solar power, 52GW hydro power, 42GW wind power and about 11GW bio power.
The ministry is already working on upgrading and adding the transmission system capacity for evacuating 500GW of electricity from non-fossil fuel, it said.
“India has emerged as one of the world leaders in energy transition and this is evident in the growth that we have achieved in the area of renewable energy. We are committed to achieve 500GW of target by 2030 and the bidding trajectory will provide a further stimulus towards this.
“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 This is a golden opportunity of industry to invest in this sector,” Singh said during the meeting.
MNRE Secretary BS Bhalla 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,” the MNRE Secretary added.
Besides, the ministry has declared a quarterly plan of the bids for FY24, which comprises of bids for at least 15GW of renewable energy capacity in each of the first and second quarters of the current financial year, and at least 10GW in each of the third and fourth quarters (Oct-December 2023 and January-March 2024 respectively).
This capacity addition is over and above the RE capacities that would come up under schemes like rooftop solar and PM-KUSUM of the ministry, under which, bids issued directly by various states and also capacities that may come up under Open Access Rules, the ministry said.
Presently, Solar Energy Corporation of India Ltd (SECI), NTPC Ltd and NHPC Ltd, are notified by the government as Renewable Energy Implementing Agencies (REIAs) for calling such bids. It has been decided to also notify SJVN Ltd, a public sector enterprise under Government of India, as an REIA.
The targeted bid capacity for FY24 would be allocated among the four REIAs. The REIAs would be permitted to bring out the bids for solar, wind, solar-wind hybrid, RTC RE power, others – all with/ without storage, as per their assessment of the RE market or as per directions of the government, it added.