Govt declares plan to add 50 GW of renewable energy capacity annually for next 5 years

New Delhi [India], April 5 (ANI): The government has decided to invite bids for 50 GW of renewable energy capacity annually for the next five years from financial year 2023-24 till fiscal 2027-28, according to an official statement Wednesday.

This plan is in accordance with Prime Minister Narendra Modi’s announcement at COP26, of achieving 500 GW of installed electricity capacity from non-fossil fuel (renewable energy and nuclear) sources by 2030. These annual bids of inter-state transmissions (ISTS) connected renewable energy capacity will also include setting up of wind power capacity of at least 10 GW per annum, according to a statement from the ministry of new and renewable energy.

The plan was finalised by the Ministry of new and renewable energy (MNRE) at a meeting chaired by Union Minister for Power and NRE RK Singh last week, said the statement from the ministry released on Wednesday.
India currently 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 (RE) 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 new and renewable energy said on Wednesday. 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.

Speaking during the meeting, R K Singh said that the declaration of the 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. We are committed to achieve 500 GW of Target by 2030 and the bidding trajectory will provide a further stimulus towards this,” Singh said, adding, “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.”

BS Bhalla, Secretary, MNRE, said that the bidding 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).

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 are issued directly by various states, according to the ministry’s statement.
Presently, Solar Energy Corporation of India (SECI), NTPC and NHPC are notified by the government as Renewable Energy Implementing Agencies (REIAs) for calling such bids. It has been decided to also notify SJVN, a public sector enterprise under Government of India, as an REIA.