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MNRE to Add 50 GW Annually for Next 5 Years to Achieve Target of 500 GW by 2030

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.

April 06, 2023. By Anurima Mondal

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.

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 Ministry of New & Renewable Energy (MNRE) at a meeting chaired by Power Minister R.K. Singh last week, is in accordance with Prime Minister’s announcement at COP26, of achieving 500 GW of installed electricity capacity from non-fossil fuel sources by 2030.

Currently, the country 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 solar power, 51.79 GW hydro power, 42.02 GW wind power and 10.77 GW 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.

Speaking during the meeting, R.K. Singh 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."

MNRE Secretary B.S. Bhalla added that the bidding trajectory will also enable the power procurers, including the distribution companies, to manage their RE procurement plans effectively.

In addition to this, the Ministry has declared a quarterly plan of the bids for FY 2023-24, which comprises of 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 (October-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 issued directly by various States & also capacities that may come up under Open Access Rules.

Talking about the new development, Gagan Sidhu, Director of CEEW Centre for Energy Finance said, “Over the last few years, annual capacity auctioned was trending at levels well below that required for India to achieve its 500 GW RE target by 2030. The announcement to invite bids of 50 GW of RE capacity annually over the next five years is thus extremely timely and puts us on the right trajectory. The quantum of financing required to achieve these new annual bidding targets will be significant. It is critical now more than ever that new sources of financing be opened up for RE. The domestic corporate green bond market can be that source, and the right combination of demand and supply measures can catalyse it”

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. They 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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