In order for India to fulfil its clean power goal by the year 2030, the capacity of the auctions that are used to distribute renewable energy projects would need to be increased by more than three times their current level.
There will be agreements achieved on the installation of 50 gigawatts worth of solar and wind projects between now and March 2024, as stated in a new plan that was released by the federal government. During the five fiscal years prior to the most recent one, BloombergNEF reports that there were an average of 15 gigawatts worth of power sold at auction each year.
The nation is hastening the installation of projects in order to fulfil a target of 500 gigawatts of generation capacity for renewable energy by the year 2030. This aim will include the construction of hydroelectric and nuclear plants. The growing need for power has brought to light the critical requirement for new investments; yet, there are impediments in India, such as high financing rates, which prevent progress.
Analyst at BNEF Rohit Gadre believes that in order to provide more renewable energy projects, there will need to be sufficient land to put the installations on, in addition to long-term electricity users. According to Gadre, these components are “critical to the success of the plan, and failing which it is likely that the tenders will be under-subscribed.”
Even though there has been an increase in interest in contracts from the commercial and industrial sector, certain governments are being encouraged to pursue new long-term renewable power arrangements in order to augment the capacity that is now being met by coal-fired power plants by the expanding demand for energy.
According to the schedule maintained by the government, India plans to put up for auction 15 gigawatts of projects during each of the first two quarters of the fiscal year, which began this month, and approximately 10 gigawatts during each of the two quarters that follow. The government would delegate state-owned power companies such as Solar Energy Corp. of India Ltd., NTPC Ltd., NHPC Ltd., and SJVN Ltd. to be in charge of the administration of the auctions.
According to Subrahmanyam Pulipaka, Chief Executive Officer of the National Solar Energy Federation of India, a trade organisation, the programme “will give developers visibility.” “It is unavoidable that there will be additional traction.”
