Govt unveils its bidding plan for RE capacity addition until 2027-28

New Delhi: Days after PSU Watch reported Bhupinder Singh Bhalla, the Secretary for the Ministry of New and Renewable Energy (MNRE), as saying that India plans to add 50 GW of RE projects every year, the news has been confirmed by the MNRE officially. In a statement released on Wednesday, the government said that it has decided to invite bids for 50 GW of renewable energy (RE) capacity annually for the next five years, starting from FY 2023-24 to 2027-28.

50 GW RE projects will include 10 GW wind power every year: MNRE

“These annual bids of ISTS (Inter-State Transmission) connected renewable energy capacity will also include setting up of wind power capacity of at least 10 GW per annum. The plan finalised by the Ministry of New & Renewable Energy (MNRE) at a meeting chaired by Union Minister for Power and NRE RK Singh last week, is in accordance with the Prime Minister’s announcement at COP26, of achieving 500 GW of installed electricity capacity from non-fossil fuel (Renewable Energy + Nuclear) sources by 2030,” said the government.

India currently has a total renewable energy capacity of 168.96 GW (as on February 28, 2023) with about 82 GW at various stages of implementation and about 41 GW under tendering stage. This includes 64.38 GW of solar power, 51.79 GW hydro power, 42.02 GW wind power and 10.77 GW bio power.

Considering the fact 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.

‘Structured bidding trajectory will give time to RE developers’

Speaking during the meeting, RK Singh, Union Minister for Power & NRE, said that the declaration of the trajectory of short-term and long-term RE capacity addition by the government is a significant step towards achieving the goal of 500 GW of non-fossil fuel capacity by 2030 and towards a faster energy transition. “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 achieving 500 GW of target by 2030 and the bidding trajectory will provide 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.

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.

Quarterly plan: 15 GW of RE capacity to be bid out in 1st & 2nd quarters

In addition to this, the ministry has declared a quarterly plan of the bids 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 (April-June 2023 and July-September 2023 respectively), and at least 10 GW in each of the third and fourth quarters of the financial year (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 are issued directly by various states and also capacities that may come up under Open Access Rules.

SJVN to be notified as implementing agency for RE bids

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 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, RTC RE power, etc — all with/without storage, as per their assessment of the RE market or as per directions of the government.

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