50 GW RE tenders to be issued annually to achieve the 2030 target
India has always shown its willingness in leadership to fight climate change. The country’s vision is to achieve Net Zero Emissions by 2070, in addition to attaining the short-term targets which include:
- Increasing renewables capacity to 500 GW by 2030
- Meeting 50% of energy requirements from renewables
- Reducing cumulative emissions by one billion tonnes by 2030
- Reducing emissions intensity of India’s gross domestic product (GDP) by 45% by 2030.
The government of India launched Jawaharlal Nehru National Solar Mission (JNNSM) in January 2010 as part of its National Action Plan for Climate Change (NAPCC) to achieve 100GW of total installed capacity through solar photovoltaic (PV) panels by 2022.
The issuance of the tenders started after this to achieve the target. SECI is the implementing agency of the Ministry of New and Renewable Energy (MNRE) for issuing tenders for solar, wind, and hybrid project development/utility DISCOM PPA tenders.
Apart from SECI, every state’s renewable energy agency also issues tenders to fulfil their renewable purchase obligation (RPO) for solar and non-solar power and increase their state’s clean energy capacity.
Until February 2023, ~168 GW of RE tenders were issued in India, out of which Solar holds a 70% share. Wind and Hybrid tenders contribute a balance of 30% share. About 119 GW of solar tenders were issued from 2010 till March 2023.
Until 2016, India’s tendering authorities issued only solar tenders. In 2016, SECI concluded its first auction of wind tenders in India. Since then, SECI along with other agencies like Gujarat Urja Vikas Nigam Ltd. (GUVNL), Maharashtra State Electricity Distribution Company Ltd. (MSEDCL), and NTPC have issued wind power tenders.
In May 2018, the MNRE launched the Wind-Solar Hybrid Policy. A month later, SECI issued its first hybrid tender. The other agencies also started issuing of Hybrid tenders (RTC Power with storage and without storage).
Source- JMK Research
Note: Hybrid includes Wind Solar Hybrid, RE+storage, etc tenders
As seen in Fig 1, India issued only 4GW of renewable energy tenders before 2014. Between 2014 and 2019, renewable energy tender issuance grew quickly. About 40GW of new renewable energy tenders came in 2019 alone. The declining trend in tenders first happened in 2020, but from 2021 the tenders are gradually increasing year on year.
As of February 28th, 2023, India’s Renewable Energy installed capacity is ~168.96 GW, with 82.62 GW under implementation and 40.89 GW under tendering process.
In order to achieve the targets specified for 2030, MNRE via its order on Bidding trajectory for Renewable Energy Power Projects, issued on 31st March 2023, specified the trajectory that is required to be followed till 2028.
- From FY 2023-24 to FY 2027-28, RE tenders of 50 GW per annum, including at least 10 GW of Wind energy, will be issued each year.
- As per the trajectory, for the first two quarters, 15 GW tenders are to be issued and in the last two quarters, 10 GW is to be issued.
Source- JMK Research, MNRE Trajectory
In the next seven years, out of this 50 GW annual tender issuance, if 30-35 GW of new RE capacity is added every year, then India can easily achieve its 2030 target of 500 GW of Non-fossil fuel capacity.