Government Aims for 500 GW Renewable Energy By 2030, Adds 50 GW Annually for 5 Years

These annual tenders for ISTS (Inter-State Transmission) connected renewable energy capacity will also involve the installation of at least 10 GW of wind power capacity every year.

The plan finalized by the Ministry of New & Renewable Energy (MNRE) last week at a meeting chaired by Union Minister for Power & NRE R. K. Singh is in line 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 presently has 168.96 GW of total renewable energy capacity (as of February 28, 2023), with approximately 82 GW under various stages of implementation and approximately 41 GW in the tendering stage. There are 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.

Given that Renewable Energy (RE) projects typically take 18-24 months to complete, 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 modernizing and expanding the transmission system capacity to evacuate 500 GW of non-fossil fuel electricity.

During the meeting, R. K. Singh, Union Minister for Power and NRE, stated that the government's announcement of the trajectory of short-term and long-term RE capacity addition is a significant step towards achieving the goal of 500 GW of non-fossil fuel capacity by 2030 and a faster energy transition. "India has emerged as one of the world leaders in Energy Transition, as evidenced by the growth in Renewable Energy that we have achieved."

"We are dedicated to meeting the 500 GW target by 2030, and the bidding trajectory will help us get there. The structured bidding trajectory will give RE developers enough time to arrange their finances, build business plans, and manage the supply chain more efficiently. This is a fantastic opportunity for industry to invest in this sector," said Shri Singh.

According to B. S. Bhalla, Secretary, MNRE, the bidding trajectory will also allow power procurers, including distribution corporations, to efficiently manage their RE procurement plans. "The bid trajectory will also give a boost to the country's RE manufacturing industry by indicating the demand that will be created for their equipment," the MNRE Secretary noted.

Furthermore, the Ministry has announced a quarterly bid plan for FY 2023-24, which includes bids for at least 15 GW of renewable energy capacity in each of the first and second quarters of the fiscal year (April-June 2023 and July-September 2023, respectively), and at least 10 GW in each of the third and fourth quarters of the fiscal year. (Oct-December 2023 and January-March 2024 respectively).

This capacity addition is in addition to the RE capacities that would be added by Ministry schemes such as Rooftop Solar and PM-KUSUM, under which bids would be issued directly by various States, as well as capacities that might be added under Open Access Rules.

The Government has currently designated Solar Energy Corporation of India Ltd. (SECI), NTPC Ltd., and NHPC Ltd. as Renewable Energy Implementing Agencies (REIAs) for the purpose of soliciting bids.  SJVN Ltd, a public sector firm under the Government of India, has also been designated as a REIA.  

The four REIAs would share the intended bid capacity for FY 2023-24. The REIAs would be allowed to issue bids for solar, wind, solar-wind hybrid, RTC RE electricity, and so on, with or without storage, based on their evaluation of the RE market or as directed by the government.