The Ministry of New and Renewable Energy (MNRE) will float bids for 50 GW of renewable energy (RE) capacity, including 10 GW of wind energy, annually till FY28.
Last week, the Ministry released the government’s bidding trajectory for RE projects. As of February 2023, India’s total installed RE capacity is 168.96 GW, including 64.38 GW of solar, 51.79 GW hydro, 42.02 GW wind and 10.77 GW bio-power. Another 82.62 GW is under implementation, while 40.89 GW is under the tendering process.
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“Bids for RE capacity of 50 GW per annum, with at least 10 GW per annum of wind energy capacity, are to be issued each year from FY24 to FY 28,” MNRE said in a directive.
During FY24, the Ministry will issue bids for 15 GW capacity each during April-June and July-September quarters, while for the remaining two quarters bids of 10 GW each will be floated, it added.
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The bids may consist of plain-vanilla solar and wind, and solar-wind hybrid, round-the-clock (RTC) power, etc with or without storage, or any other combination, based on the assessment of the RE market or as per government directions, it said.
The year-wise targeted bid capacity would be allocated among the Implementing agencies by the government, it added.
The bids are to be floated in accordance with relevant standard bidding guidelines issued by the government and abiding with MNRE’s advice in relation with tenders for RE projects.
The rationale behind the exercise is to meet India’s commitment to achieve about 50 per cent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030, and a reduction of the emissions Intensity of the GDP by 45 per cent as against 2005 levels by 2030.
India also wants to have 500 GW of installed electricity capacity from non-fossil fuel sources by 2030.
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According to a study by Avendus Capital and Clean Energy Pipeline, the Indian energy transition landscape is expected to undergo a sea change over this decade with investments in several emerging businesses that are working towards decarbonisation of the economy. The sector provides around $25 billion annual investment opportunity for investors.