Govt unveils plan to add 250 GW renewable energy capacity in five years
The government has decided to invite bids for 50 GW of renewable energy capacity annually for the next five years i.e., from FY2023-24 till FY2027-28.
Wednesday April 05, 2023,
4 min Read
The government has announced a plan to add 250 GW of renewable energy capacity in the next five years to achieve its target of 500 GW of clean energy by 2030.
The government has decided to invite bids for 50 GW of renewable energy capacity annually for the next five years i.e., from financial year 2023-24 till financial year 2027-28, as per a statement from the Ministry of New and Renewable Energy.
These annual bids of inter-state transmission connected renewable energy capacity will also include setting up of wind power capacity of at least 10 GW per annum, the statement stated.
The plan finalised by the Ministry of New and Renewable Energy at a meeting chaired by Union Minister for Power and New and Renewable Energy, R K 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.
India currently has a total renewable energy capacity of 168.96 GW (as of February 28, 2023) with about 82 GW at various stages of implementation and about 41 GW under tendering stage.
This comprises 64.38 GW of solar power, 51.79 GW of hydro power, 42.02 GW of wind power, and 10.77 GW of bio power.
Considering the fact that renewable energy 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, the statement said.
Speaking during the meeting, Singh had said the declaration of the trajectory of short-term and long-term renewable energy 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," said Singh.
"The structured bidding trajectory will provide sufficient time to the renewable energy 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," he added.
B S Bhalla, New and Renewable Energy Secretary, said in the statement that the bidding trajectory will also enable the power procurers, including the distribution companies, to manage their renewable energy procurement plans effectively.
"The bid trajectory will also provide a fillip to the renewable energy manufacturing industry in the country by indicating the demand that would be created for their equipment," he 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).
This capacity addition is over and above the renewable energy capacities that would come up under schemes such as rooftop solar and PM-KUSUM of the ministry, under which bids are issued directly by various states and capacities that may come up under Open Access Rules.
Currently, Solar Energy Corporation of India Ltd, NTPC Ltd, and NHPC Ltd are notified by the Government as 'renewable energy implementing agencies' for calling such bids. It has been decided to also notify SJVN Ltd, a public sector enterprise under the Government of India, as a renewable energy implementing agency.
The targeted bid capacity for FY 2023-24 would be allocated among these four agencies.
The agencies would be permitted to bring out the bids for solar, wind, solar-wind hybrid, round-the-clock renewable energy, etc. all with/without storage, as per their assessment of the renewable energy market or as per the directions of the government.
Edited by Swetha Kannan