Bidding trajectory for RE to boost our 2030 energy goals

From the financial year 2023–2024 to the financial year 2027–2028, the government has decided to invite bids for 50 GW of renewable energy capacity yearly. The installation of wind power capacity with an annual capacity of at least 10 GW will also be included in these yearly bids of ISTS (Inter-State Transmission) connected renewable energy capacity.

The plan, which was finalised by the Ministry of New & Renewable Energy (MNRE) at a meeting last week presided over by Union Minister for Power & NRE R. K. Singh, is in line with the Prime Minister’s announcement at COP26 to install 500 GW of non-fossil fuel electricity capacity (Renewable Energy + Nuclear) sources by 2030.

Currently, India has 168.96 GW of total renewable energy capacity, of which 82 GW are in various phases of implementation and 41 GW are in the tendering stage. This includes 42.02 GW of wind power, 10.77 GW of bio-power, 64.38 GW of solar power, and 51.79 GW of hydropower.

The proposed plan will add 250 GW of renewable energy and guarantee 500 GW of installed capacity by 2030, taking into account the fact that Renewable Energy (RE) projects typically take 18 to 24 months to commission. The capacity of the transmission system is already being upgraded and expanded by the Ministry of Power to accommodate the evacuation of 500 GW of electricity generated by non-fossil fuels.

Speaking during the meeting, R. K. Singh, Union Minister for Power & NRE 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 500 GW 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,”

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,” the MNRE Secretary added.

Specifically, 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 were announced as part of a quarterly plan for the bids for FY 2023–24. (Oct-December 2023 and January-March 2024 respectively).

The capacity increase goes beyond the RE capacities that would emerge under programmes like Rooftop solar and PM-KUSUM of the Ministry, under which bids were issued directly by different States, as well as capacities that would develop under Open Access Rules.

Currently, the Government has designated NTPC Ltd., NHPC Ltd., and Solar Energy Corporation of India Ltd. (SECI) as Renewable Energy Implementing Agencies (REIAs) for soliciting such bids.  It has been agreed to also notify SJVN Ltd, a government of India-owned public sector firm, as a REIA. A decision has been made to also notify SJVN Ltd, a government-owned public sector enterprise, as a REIA. The four REIAs would share the bid capacity for the fiscal years 2023–2024. The REIAs would be allowed to release bids for solar, wind, solar-wind hybrid, RTC RE electricity, etc., all with or without storage, according to their evaluation of the RE market or as per directions from the government.