In a significant move towards achieving its goal of having 500 GW of installed renewable energy capacity from non-fossil fuel sources by 2030, the Indian government has declared a bidding trajectory for renewable energy that will add 50 GW of renewable energy capacity annually for the next five years. The plan, finalized by the Ministry of New & Renewable Energy (MNRE) at a meeting chaired by Union Minister for Power & NRE Shri R. K. Singh, will include setting up wind power capacity of at least 10 GW per annum.
India currently has a total renewable energy capacity of 168.96 GW, with about 82 GW at various stages of implementation and about 41 GW under the tendering stage. The government’s trajectory 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. Renewable energy projects take around 18-24 months for commissioning, and the bid plan provides sufficient time to RE developers to plan their finances, develop their business plans, and manage the supply chain more efficiently.
India emerges as a leading player in renewable energy transition
Speaking during the meeting, Shri R. K. Singh said that the declaration of 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. This is a golden opportunity for the industry to invest in this sector,” Shri Singh said.
The bid 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.
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).
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 the 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 or without storage, as per their assessment of the RE market or as per directions of the government.
The Indian government’s plan to add 50 GW of renewable energy capacity annually for the next five years is a bold move towards achieving its goal of having 500 GW of installed electricity capacity from non-fossil fuel sources by 2030.
Moreover, the government’s focus on renewable energy is also expected to have a positive impact on job creation and economic growth. The expansion of the renewable energy sector is likely to create employment opportunities across various segments of the industry, from project development to installation and maintenance. Additionally, with increased investment in the sector, there is potential for growth in related industries such as equipment manufacturing, logistics, and services. This, in turn, can contribute to overall economic growth and development.
In conclusion, the Indian government’s plan to add 50 GW of renewable energy capacity annually for the next five years is a major step towards achieving the target of 500 GW by 2030. The bidding plan, which provides sufficient time to plan finances and manage supply chains, is expected to give a further stimulus to the renewable energy sector. With the country’s ambitious renewable energy targets, India is set to become a global leader in the transition to clean energy, with positive impacts on the environment, public health, and economic growth.