Government declares plan to add 50 GW of renewable energy capacity annually with target of 500 GW by 2030

The Indian government has decided to invite bids for 50 GW of renewable energy capacity annually for the next five years from 2023-24 till 2027-28. These annual bids of Inter-State Transmission (ISTS) connected renewable energy capacity will also include setting up of wind power capacity of at least 10 GW per annum. The plan was finalised by the Ministry of New & Renewable Energy (MNRE) at a meeting chaired by union minister for power & NRE, Mr R. K. Singh.

Considering the fact that renewable energy projects take around 18 to 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.

Speaking during the meeting, Mr Singh, said that the declaration of 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 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 renewable energy developers to plan their finances, develop their business plans and manage the supply chain more efficiently. This is a golden opportunity for the industry to invest in this sector,” Mr Singh said.

Mr B. S. Bhalla, Secretary, MNRE said 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,” the MNRE Secretary added.

In addition to this, the Ministry has declared a quarterly plan of the bids for financial year of 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 which is October to December 2023 and January to March 2024 respectively.

This capacity addition is over and above the renewable energy 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.

Presently, Solar Energy Corporation of India Limited, NTPC Limited and NHPC Limited 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 the financial year of 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 renewable power, etc  all with/without storage, as per their assessment of the renewable energy market or as per directions of the government.