Monthly RE Update – August 2024

Monthly RE Update – August 2024

Tenders Issued

• New RFS Issued: 5927 MW of RE tenders issued in August 2024.
• NTPC issued a tender for setting up of 1200 MW ISTS connected solar power projects anywhere in India with “greenshoe option” of additional capacity up to 600 MW.
• ONGC invited bids for a 1000 MW captive ISTS connected, co-located Wind-Solar Hybrid tender.
• GUVNL floated a 500 MW solar tender with greenshoe option of additional capacity up to 500 MW.
• Additionally, GIPCL invites bids for the supply of 625 MWp Solar PV Modules(bifacial technology) for 500 MW (AC) solar power project in Gujarat.

New RE tenders issued in August 2024

Module Supply Tender

Source: JMK Research

Source: JMK Research

Auction Completed

• In July 2024, about 1700 MW of utility scale solar capacities were allotted to various RE developers.
• Onward Solar is the new entrant in the solar segment this month.
• SAEL Industries and NTPC have won the capacities in both the solar tenders auctioned in August 2024.

Figure 1.3: Winners in the latest RE tenders

Source: JMK Research

Source: JMK Research

Winner’s details for electrolyser manufacturing tender under sight scheme Tranche-II

• SECI announced the results of its second electrolyser manufacturing tender, which was fully subscribed by multiple players. The bidding capacity surpassed the actual tender capacity of 1500 MW, reaching 2762 MW.
• Except for Adani, Ohmium, and Advait Infratech, all other participants are new entrants in the electrolyser manufacturing segment. Additionally, Newage Green Electro won capacities under Bucket 1 & 2A, while Adani secured capacities under Bucket 2A & Bucket 2B.

Figure 1.3: Winners in the electrolyser manufacturing tenders

Source: JMK Research

Installed Capacity

From January to July 2024,  about 13,889 MW of Solar capacity and 2,339 MW of Wind capacity were added in the country, taking the cumulative RE capacity to 197.2 GW. In July 2024, a combined total of  2153 MW of solar and wind capacity was added.

Figure 2.1: RE installations in July 2024

Source: MNRE, JMK Research

Note: Solar includes utility scale solar, rooftop solar and off grid/distributed solar segments

State wise utility scale solar and wind installed capacity in July 2024

• In July 2024, Maharashtra added the highest Utility-Scale Solar capacity of 404 MW, followed by Rajasthan with 400 MW. In addition, Gujarat added the maximum rooftop solar capacity of 208.93 MW, followed by Maharashtra, which had 109.12 MW.
• Regarding off-grid solar installations, Haryana installed a maximum capacity of 144.43 MW, followed by Maharashtra with 52.11 MW.
• Regarding wind installations, Gujarat installed a maximum capacity of 280 MW.

Figure 2.2: State wise utility scale solar and wind installed capacity in July 2024

Source: MNRE, JMK Research

Projects Commissioned

Table 2.1: List of key Solar projects commissioned in August 2024

Source: JMK Research

Key announcements that were made during the month were:

• Gujarat State Electricity Corporation Limited (GSECL) has secured a power purchase agreement with Gujarat Urja Vikas Nigam Ltd (GUVNL) for a 35 MW solar PV with 57 MWh battery energy storage system (BESS) project.
• Waaree Energies has secured an order to supply 90 MW of bifacial modules for Juniper Green’s solar project in Bikaner, Rajasthan. Under the contract, Waaree will provide 540Wp/545Wp dual-glass modules.
• The Uttar Pradesh government plans to install solar power plants along both sides of the 296-km Bundelkhand Expressway, with an estimated capacity of 450 MW. The project costs around INR 1,800 crore, with electricity prices ranging from INR 4 to 4.50 per kWh. GEAPP is assisting the Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) in bidding for the project, aiming for commissioning within the next 15 months.
  • Uttar Pradesh is setting up nine solar parks with a capacity of 3,840 MW with 528 MW of power already in production. These solar parks are primarily located in Bundelkhand, UP.
• Inox Wind Limited (IWL) has secured a 51 MW equipment supply order from Everrenew Energy for its latest 3 MW Wind Turbine Generators in Tamil Nadu.
• Brookfield is planning to invest INR 50,000 crore in the wind and solar sector in Andhra Pradesh over the next three to five years. The company aims to install 1,380 MW of solar power capacity and 1,640 MW of wind power capacity by 2026.
• IndiGrid has partnered with British International Investment (BII), the Norwegian Climate Investment Fund (Norfund), and Techno Electric for new greenfield Interstate Transmission System (ISTS) projects.
  • This fiscal year, IndiGrid successfully operationalized its first greenfield ISTS project, Kallam Transmission Limited, and secured five additional projects across ISTS and BESS sectors, with an anticipated capital expenditure of approximately INR 2,000 crores slated for the next 12-24 months.
• RMC Green Energy Pvt Ltd, a subsidiary of RMC Switchgears Limited, has secured approval from the Rajasthan Renewable Energy Corporation to establish a 50 MW Renewable Energy Park in Rajasthan.
  • RMC is actively pursuing additional tenders exceeding 600 MWp and is engaging with both public and private sector entities to achieve the ambitious goal of securing 1 GWp in EPC contracts over the next 18 months.
• KPI Green Energy has received letters of intent (LOI) to develop 13.30 MW solar power projects through its subsidiary, Sun Drops Energia. These projects will be executed under the company’s Captive Power Producer (CPP) business segment. The projects are slated for completion in the financial year 2024-25 in multiple tranches.
• The Tamil Nadu government has granted three renewable energy policies to set up 20 GW of power generation by 2030. The approved policies include a pump storage policy, a small hydel policy, and a wind repowering and life extension policy for the energy sector. The Tamil Nadu government also approved 15 investment proposals worth INR 44,125 crore.
• ReNew has secured a green attribute sale contract of 437.6 MW with Microsoft, aiming to generate over one million units of green electricity attributes annually. This deal aligns with Microsoft’s goal to achieve carbon-negative status by 2030.
• JSW Neo Energy has received a Letter of Award (LOA) from NTPC for a 300 MW ISTS connected wind solar hybrid power project. This project was secured through a competitive bidding process in NTPC’s 1 GW auction (NTPC-Tranche-VI).
  • Additionally, JSW Energy’s arm, JSW Renew Energy Twenty Limited, signed a power purchase agreement (PPA) with Bangalore Electricity Supply Co. Ltd (BESCOM) for a 300 MW solar project in Karnataka, at a tariff of INR 2.89/kWh. The project is expected to be commissioned within 18 months. This adds to JSW Energy’s growing solar pipeline, now at 3.2 GW, with PPAs signed for 1.3 GW.
  • JSW Neo Energy has received a LOA for an additional 400 MW of wind-solar hybrid power project from Maharashtra State Electricity Distribution Co. Ltd (MSEDCL). This capacity was secured through the greenshoe option. With this, JSW Neo has now secured 600 MW of capacity under MSEDCL’s Phase-III auction.
• Prozeal Green Energy has won the contract to build a 50 MWp ground-mounted solar power plant in Tamil Nadu for ARS Steel and Alloys International Pvt Ltd. This project will be developed under the Group Captive model.
• Bondada Engineering has secured a LOA to develop 170.40 MW (DC) grid-connected distributed solar power plants in Maharashtra under the Mukhya Mantri Saur Krushi Vahini Yojana 2.0. Paradigm IT Technologies and Metalcraft Forming Industries, both Indian software companies were awarded the projects. The projects entails a total value of INR 575.74 crore.
• GameChange Solar signed a contract to provide Sterling and Wilson Renewable Energy Ltd solar trackers for a 750 MWp solar PV project at Khavda Solar Park in Gujarat. The Khavda Renewable Energy Park is poised to become the largest renewable energy facility globally, with a planned capacity of 30 GW.
• Candi Solar India plans to develop 200 MW of renewable energy projects by June 2025 in India and South Africa. In India, these projects will focus on the commercial and industrial (C&I) sectors, while in South Africa, they will cater to the food industry and agriculture. About two-thirds of the capacity will be in India, with the remainder in South Africa. The company has secured approximately $38 million in funding to expand its portfolio.
• NLC India has signed a 200 MW solar power purchase agreement (PPA) with the state-owned electricity distribution companies of Telangana. Under this agreement, NLC will supply 200 MW of solar power to the Discoms at a competitive rate for 25 years. The project is scheduled for commissioning by June 2025.
• Brookfield is planning to invest INR 50,000 crore in the wind and solar sector in Andhra Pradesh over the next three to five years. The company aims to install 1,380 MW of solar power capacity and 1,640 MW of wind power capacity by 2026.
• Zelestra (earlier known as Solarpack) has signed a 25-year power purchase agreement (PPA) with India’s NTPC for a 450 MWp solar project in Rajasthan. This project was awarded in January 2024 under NTPC’s 1500 MW ISTS connected solar (ISTS-I) tender.
• Gensol Engineering has secured a 16 MW rooftop solar project from a textile company in Madhya Pradesh. The repeat order has been secured under commercial and industrial (C&I) segment of the company. The project will get commissioned in six months.
• Sunsure will supply solar power to Apollo Pipes and Apollo Metalex from its PV plant in Mahoba, Uttar Pradesh. This will enable companies to meet over 50% of their power requirements with clean, renewable energy.
• The construction of a 60 MW solar power plant in Khargone, Madhya Pradesh, is expected to be completed by the end of the year at an estimated cost of INR 308 crore.

Monthly RE Generation

In August 2024, Renewable energy sources generated 17,870.4 MU, which is 24% less than the RE generation in July 2024. Solar & wind energy generation decreased by 10% and 36% respectively on a month-on-month basis in August 2024.

Figure 3.1: Source-wise Renewable Energy Generation (MU) – India

Source: CEA, JMK Research

Investments/ Deals

In August 2024, about  $848 million was raised in the RE sector in India. The key investments during the month were:

• Fourth Partner Energy secured a $275 million investment from global impact investors IFC, ADB, and DEG. The company plans to utilize these funds for business expansion, including a target portfolio of 3.5 GW renewable energy assets by 2026.
• Power Finance Corporation secured a loan of 25.5 billion Japanese yen ($173 million) from the Japan Bank for International Cooperation (JBIC). The funds will finance a 300 MW wind energy project in Karnataka.
• Blueleaf Energy secured $170 million from Axis Bank to fund its 200 MW hybrid wind-solar power plant in Madhya Pradesh.

Table 4.1: Investment and deal in August 2024

Source: Industry news articles, JMK Research  

Other important announcements that were made during the month were:

• IREDA has approved a proposal to raise INR 4,500 crore. The funds will be secured in one or more phases through a further public offer (FPO), qualified institutional placement (QIP), rights issue, preferential issue, or other approved approaches or combinations.
• India Grid Trust (IndiGrid) has announced a share issue at INR 136.43 ($1.62) each to raise around INR 6.95 billion ($82.7 million). This follows a successful Offer-for-Sale managed by KKR, which cut KKR’s stake from 21.17% to 3.85% and was nearly twice oversubscribed. Alberta Investment Management Corporation (AIMCo) and HDFC Life have pledged INR 5.67 billion ($67.5 million) and INR 1 billion ($11.9 million), respectively.
• BPCL plans an INR 1.7 lakh crore investment plan for the next five years. This initiative focuses on enhancing oil refining and fuel marketing and exploring petrochemicals and green energy growth. Key projects include an INR 49,000 crore ethylene cracker facility, expanded refining capacity, and net-zero carbon goals by 2040.
• Tata Power Solar Systems partnered with ICICI Bank to provide residential and corporate clients with affordable financing options for solar panel purchases, allowing loans of up to INR 90 lakh without collateral for up to 5 years. For larger loans, collateral can be secured with extended terms of up to 20 years. The partnership also includes flexible down-payment options of 20-25% to make solar investments more accessible.
• Evren, a clean energy platform launched by Brookfield and Axis Energy in India, plans to invest $5 billion in Andhra Pradesh. The investment will develop 3.5 GW of solar and 5.5 GW of wind projects, with 3 GW set to be operational by 2026. Evren is also exploring opportunities in solar module manufacturing, pumped storage, battery storage, e-mobility, and green ammonia. The company aims to build over 6 GW of renewable energy assets across India’s resource-rich states in 2-3 years.
• Ayana Renewable Power, an independent power producer managing a 5 GW RE portfolio, is open to selling up to 100% of its stake. Oil and Natural Gas Corporation (ONGC), JSW Neo Energy, and Singapore’s Sembcorp Industries Ltd have been shortlisted to submit binding bids for a majority stake in Ayana Renewable Power Pvt Ltd in a deal valued at approximately $800 million.
• Ruloans, a credit distribution company, has signed an agreement with UGRO Capital, a DataTech MSME-lending platform, to enter the renewable energy finance market. Ruloans is the first among direct sales agents (DSA) to include rooftop solar finance products in its loan portfolio.
• Shell Plc plans to sell 1 GW of operational renewable energy assets from its Sprng Energy unit in India, with an enterprise value of $1.1 billion. The deal has garnered interest from global and domestic companies, including ArcelorMittal, Sembcorp, CPPIB, and JSW Neo Energy.
• Indian state-run companies are set to raise approximately ₹50 billion ($595.61 million) through long-term securities, taking advantage of declining government bond yields and lower state debt supply. Companies like THDC India, NHPC, India Infrastructure Finance, and the Indian Renewable Energy Development Agency plan to issue bonds with tenors ranging from 10 to 15 years. The drop in government bond yields, with long-tenor yields now below 7%, has attracted interest from insurance companies looking for highly rated long-duration investments.
• O2 Power, a major renewable energy platform in India, has attracted non-binding offers from seven of the 13 prospective buyers, with the deal valued at $1 billion. Selected bidders are expected to submit binding offers by October 19, and the deal could be finalized by January 2025.

GTAM Traded Volume

The IEX traded a total volume of about 16.42 MUs in GTAM in August 2024, which is 11.6 % higher than the volume traded in the previous month. The average trade price in IEX-GTAM for August 2024 is INR 7.95/kWh.

Figure 5.1: GTAM Traded volume and Price Trend

Source: IEX, JMK Research

Module Price Trends

Comparing on m-o-m basis, price for global mono PERC modules have remained same in August 2024.

Figure 6.1: Solar Modules Price trends

Source: PVInfoLink, JMK Research

Comparing on m-o-m basis, prices for domestic modules have decreased in August:

• Mono PERC 500 Wp – INR 17.1/Wp (down by 1.72%).
• Bifacial Modules  – INR 17.2/Wp (down by 1.71%).
• TopCon Modules – INR 17.7/Wp (down by 1.11%)

Fig 6.2: Average Prices for Domestic Modules

Source: JMK Research

Note: Domestic module prices are all inclusive prices till project site including freight charges, GST, etc.

Key Market Updates

Solar Manufacturing

Reliance plans to set up its first solar giga factory in 2024

• Reliance plans to commission its first solar giga factory this year as part of a pivot towards green energy and this factory includes the manufacturing of PV Modules, cells, wafers and ingots, polysilicon, and glass at a single location.
• The first phase of 20 GW solar PV manufacturing will be installed by the end of this year.

Storage

India identifies 176.28 GW of Pumped hydro storage potential

• According to the Central Electricity Authority (CEA), India has identified a potential of 133,410 MW for large hydroelectric projects and 176,280 MW for pumped storage potential (PSP).
• Over the past decade, the CEA report indicates that 24 hydroelectric schemes, including PSPs, with a combined capacity of 15.56 GW have been approved.
• Currently, 17 hydroelectric projects with a total capacity of 11.37 GW and 38 PSPs with a capacity of 55.33 GW are under survey and investigation for Detailed Project Report (DPR) preparation.

Foxconn Plans to Establish Battery Energy Storage Manufacturing Unit in India

• Foxconn (Hon Hai Technology Group) plans to establish a battery energy storage system (BESS) manufacturing unit in India, with potential plans for an electric vehicle unit as well, according to chairman Young Liu. The company focuses on future industries like electric vehicles, digital health, and robotics alongside key technologies like AI, semiconductors, and next-gen communications.
• In Taiwan, Foxconn has set up a battery cell plant with a 1.2 million kWh capacity, targeting LFP batteries for EVs and energy storage. Additionally, Foxconn is advancing lithium metal anode solid-state battery technology, achieving an energy density of 400Wh/kg.

Greenko collaborates with Tamil Nadu Government for 3.3 GW Pumped Storage Projects

• Greenko has signed an MoU with the Tamil Nadu government to develop three pumped storage projects totaling 3.3 GW in the state. These projects will be located in Tirupathur, Salem, and Tiruvannamalai districts. Greenko is also building over 100 GWh of connected, digitized cloud storage across India, including the country’s largest pumped storage project in Madhya Pradesh.
• The company currently has a renewable energy capacity of 7.5 GW and plans to have 50 GWh of storage operational by 2025, with an additional 50 GWh planned in subsequent years.

Tata Power collaborates with Maharashtra Government to set up 2.8 GW of Pumped hydro projects

• Tata Power and the Government of Maharashtra have signed an MoU to develop two large pumped hydro storage projects (PSPs) in the state, with a total capacity of 2.8 GW. Tata Power will invest an estimated INR 13,000 crore ($1,549.41 million) in these projects, which will be located in Shirawta, Pune (1.8 GW) and Bhivpuri, Raigad (1 GW).

Avaada Group collaborates with Maharashtra Government to set up 2.75 GW of Pumped hydro projects

• Avaada plans to invest around INR 14,000 crore in pumped storage projects over the next five to seven years. Avaada Group has signed a Memorandum of Understanding (MoU) with the Government of Maharashtra to develop two PSPs with a total capacity of 2.75 GW. The projects include the 1.5 GW Pawana Falyan PSP in the Pune & Raigad districts and the 1.25 GW Kumbhavade PSP in the Kolhapur and Ratnagiri districts.

GEAPP plans 2 GWh battery storage capacity in India

• Rockefeller Foundation-backed Global Energy Alliance for People and Planet (GEAPP) plans to support the development of 2 GWh of cumulative utility-scale battery storage capacity.
• GEAPP, in partnership with IndiGrid, is expected to commission the country’s first commercial utility-scale project by the end of this year or the start of 2025.

India aims to achieve the target of 40 GW Battery Storage and 90 GW Pumped Storage by 2030

• India plans to significantly advance its energy transition by deploying 40 GW of battery storage and 90 GW of pumped storage capacity by 2030, focusing on Andhra Pradesh, Tamil Nadu, and Gujarat. The country’s installed power capacity has surpassed 440 GW, and an additional 350 GW is expected by 2030.
• India aims to source 50% of its power from non-fossil fuels by 2030, including 85 GW of solar capacity. Key states like Andhra Pradesh, Tamil Nadu, and Gujarat will play a crucial role in this green energy push.

India’s RE storage capacity set to rise to 6 GW by FY 2028

• Crisil forecasts a significant increase in India’s renewable energy (RE) storage capacity, expecting it to surge to 6 GW by fiscal 2028 from less than 1 GW operational as of March 2024. Despite slow project implementation, this growth is attributed to a strong pipeline of projects and increased auctions.
• The government is actively promoting the deployment of standalone storage systems and storage-linked projects to manage the growing share of solar and wind in the power generation mix. By May 2024, about 6 GW of storage capacity was already in the pipeline, crucial for increasing RE’s share to 20-22% of total power generation.

Green Hydrogen

NISE seeks proposals for funding green hydrogen testing infrastructure

• The National Institute of Solar Energy (NISE) has invited proposals to develop testing facilities, infrastructure, and institutional support to develop standards and regulatory frameworks under the National Green Hydrogen Mission.
• The main objective of the call for proposal is the development of new testing Infrastructure for the various components/ technologies/ processes in the production, storage, transportation & utilization of Green Hydrogen & its derivatives.
• Government entities can avail funding of up to 100% of the capital cost for equipment, installation, and commissioning of the equipment. Non-Government entities can avail of up to 70% funding.
• The last date for the bid submission is 14 September 2024.

AM Green Ammonia B.V. greenlights 1 million ton green ammonia project in Andhra Pradesh

• AM Green Ammonia B.V. has reached Final Investment Decision (FID) for its first million-ton green ammonia project located in the Kakinada, Andhra Pradesh. The company aims to achieve a green ammonia production capacity of 5 million ton per annum (mtpa) by 2030 – equivalent to about 1 mtpa of green hydrogen.

SECI invites proposals to develop green hydrogen hub infrastructure

• SECI has invited proposals to develop infrastructure for green hydrogen hubs. At least two hubs, each with a capacity of 1,00,000 MTPA, will be established by FY 2025-26 with a budget of INR 200 crore.
• The support will focus on core infrastructure, including storage, transportation, pipelines, hydrogen refueling stations, compression and liquefaction technologies, and energy storage. The submission deadline is October 7, 2024.

Advait Infratech partners with Guofu Hydrogen for Alkaline Electrolyser Technology in India

• India’s Advait Infratech Ltd (AIL) has announced a technology licensing agreement with China’s Guofu Hydrogen Energy Equipment. Under this deal, Guofu Hydrogen will provide AIL with essential technical documentation, expertise, and training for alkaline-based electrolyser technology.
• AIL plans to use this technology to manufacture and assemble equipment for green hydrogen production locally, starting with a production capacity of 300 MW/year. The agreement also outlines plans to expand capacity to 1,000 MW/year and include a broader range of hydrogen-related products, such as hydrogenation machines and station integration.

Other Market Updates

India generated 61.8 billion units (BU) of renewable energy in the FY2025 (Till May 2024)

• India produced 61.84 billion units (BU) of renewable energy (RE) from May 2024 to the end of FY2025, accounting for 19.19% of the total generation mix. In 2023-25, India generated 364.6 billion units (BU) of clean energy, representing 20.9% of the total generation.
• Schemes such as PM-KUSUM, the Revamped Distribution Sector Scheme, and Deen Dayal Gram Jyoti Yojana aim to increase renewable energy’s share in the total generation mix by supporting solar power plants, electrifying households and villages, and improving rural distribution networks.

ReNew Energy aims to install a 21 GW Renewable Energy Portfolio in the next 5 years

• ReNew Energy surpassed the 10 GW renewable energy capacity milestone in FY24 and aims to double its portfolio to 21 gigawatts over the next five years.
• Their first Annual Integrated Report highlights their commitment to expanding renewable energy projects to meet the growing demand for clean, sustainable power solutions.

25,086 consumers installed rooftop solar under PM Surya Ghar Muft Bijli Yojana in Maharashtra

• Under the PM Surya Ghar Muft Bijli Yojana, 25,086 consumers in Maharashtra have installed rooftop solar (RTS) plants with a total capacity of 101.18 MW.
• For these consumers, a subsidy worth INR 160 crore is being directly transferred to their accounts and This scheme is implemented by the Maharashtra State Electricity Distribution Company (MahaVitaran).

Government released a total of INR 3,135 crore in the last 3 years to support rooftop solar

• A total of INR 3,135.4 crore has been allocated over the past three years for installing grid-connected rooftop solar systems in households under Phase II of the grid-connected rooftop solar program. As of 26 July 2024, the scheme’s National Portal has received 1.29 crore registrations and 15.27 lakh applications.
• The PM-Surya Ghar Muft Bijli Yojana, launched on 13 February 2024, aims to install rooftop solar plants in one crore households, subsuming the previous Phase-II grid-connected rooftop solar program.

High GST rates and tax inconsistencies are hindering renewable energy growth in India

• The government has raised the GST on solar energy equipment from 5% to 12%. It would be better to reduce it to zero to encourage more people to buy solar equipment.
• The Paris Agreement aims for 500 GW of renewable energy, but we currently have 200 GW. To reach 500 GW, we need to add 50 GW per year, but we are only adding 15 GW annually, including solar, wind, hydro, and biogas.
• The government charges market-rate interest under the PM Surya Ghar Muft Bijli Yojana, but the scheme falls s`hort. The actual cost of a 1 KW solar project is around INR 50,000 to INR 60,000. Although there is a subsidy of INR 1.5 lakh, it is still charged at 7% interest, which is the market rate.

Maharashtra scheme plans to boost solar power production to 12.8 GW in 14 months

• Maharashtra, which took 17 years to reach a solar energy capacity of 3.6 GW, is now set to dramatically increase its capacity by 9.2 GW in the next 14 months.
• Work orders for agricultural pump projects have been issued, which will help lower power purchase costs and reduce the cross-subsidy burden on industrial and commercial consumers. This move will also cut the government’s subsidy burden by at least INR 4500 crore, paving the way for sustainable solarization in agriculture.
• The main advantage of this scheme is that it eliminates the need for long transmission lines to transport solar energy from distant locations or other states to agricultural fields in Maharashtra. By generating solar energy close to farmland and supplying it via nearby feeders, the scheme will significantly reduce transmission and distribution losses and improve power supply reliability.

India Invests Up to INR 30 Lakh Crore to Achieve 500 GW Renewable Energy Target by 2030

• An investment of up to INR 30 lakh crore is projected to achieve India’s 500 GW renewable energy capacity goal by 2030. This is underscored by the fact that this year’s budget allocation for the sector has more than doubled to over INR 20,000 crore.
• Over the past decade, from 2014 to 2024, India’s installed renewable energy capacity has grown by 165%, rising from 76.38 GW to 203.1 GW. The country has already invested approximately ₹7 lakh crore in this period.

India achieves Renewable Energy Capacity has grown by 165% since 2014

• India’s installed renewable energy capacity has reached 203.1 GW, a 165% increase since 2014, positioning the country as the fourth largest globally in total renewable energy capacity.
• Over the last decade, solar power capacity has expanded from 2.82 GW in March 2014 to 85.47 GW in June 2024, and wind power capacity has increased from 21.04 GW to 46.66 GW. Consequently, the share of non-fossil fuel in the total installed capacity has risen from 32.30% to 45.54%.

India aims to install 856 GW Solar Capacity by 2047

• NITI Aayog predicts that solar energy will make up 46% of India’s power capacity, reaching 856 GW by 2047. This forecast, part of the Business-As-Usual scenario, highlights a major shift toward sustainable energy.
• Rapid advancements in solar technology are expected to improve efficiency and integration, though the exact land requirements for solar parks by 2050 are still uncertain due to ongoing technological changes.

Waaree Renewable aims for 15.5 GW in new RE Project Bids

• Waree Renewable Technologies, part of the Waree Energies group, aims to build a 15.5 GW bidding pipeline for FY25. Last year, the company’s existing order book stood at 800 MW, growing to 2.1 GW this year.
• The company aims to leverage opportunities in round-the-clock renewable projects, rising energy storage needs, and falling solar panel costs to enhance competitiveness and lower capital expenses.

India Struggles to Meet Wind Energy Targets by 2030

• According to the Ember report, India aims to achieve 509 GW of renewable energy capacity by 2030, with 110 GW coming from wind power. However, progress is lagging, as only 2.8 GW of wind capacity was added in 2023, falling short of the 9.3 GW required annually from 2024 to 2030.
• Global wind capacity is expected to double to 2,157 GW by 2030, but this is still 585 GW short of the amount needed to triple current capacity and meet climate targets. Industry forecasts indicate that China will triple its wind capacity by 2030, continuing to lead by contributing more than half of the world’s new wind capacity annually from 2024 to 2030.

NTPC set to sell 100,000 carbon credits

• NTPC Green Energy Limited (NGEL) has announced the sale of 100,000 carbon credits (Verified Emission Reductions, VERs) from its wind and solar projects, which are registered under the Verified Carbon Standard (VCS) program.
• The sale will be conducted through domestic competitive bidding, open to all credible domestic companies operating under current laws. Interested organizations can submit their techno-commercial bids starting August 23, 2024, with the final deadline for Stage-I bids set for September 12, 2024, at 15:00 IST.

Solar and Wind Capacity added in H12024 Outpaced CY2023 Installations

• In the first half of 2024, India added approximately 12,156 MW of solar capacity and 1,920 MW of wind capacity, representing a 78.9% increase in solar installations and a 2.3% increase in wind installations compared to the same period in 2023. The total capacity added in H1 India added 1.8 GW of new rooftop solar capacity in H1 2024, a 19.6% decrease from H1 2023.
• However, the Government of India approved the PM Surya Ghar: Muft Bijli Yojana in February 2024, with an allocation of Rs 75,021 crore, aiming to add over 2 GW of new rooftop solar capacity in H2 2024. In the wind sector, 1.9 GW of new capacity was added in H1 2024, slightly up from 1.87 GW in H1 2023. Karnataka (874 MW) and Gujarat (629 MW) led the wind capacity additions, accounting for about 80% of the new wind capacity in H1 2024.

Tata Power Solar Partner with ICICI Bank to Offer Low-cost Solar Panel Loans with Easy Financing Options

• Tata Power Solar Systems has teamed up with ICICI Bank to offer residential and corporate clients cost-effective financing options for solar panel purchases. ICICI Bank will provide tailored financial solutions with competitive rates, allowing loans up to INR 90 lakh without collateral for up to 5 years.
• Larger loans can be secured with collateral and extended up to 20 years. The partnership includes flexible down-payment options of 20-25% to make solar investments more accessible.

Policies and Regulations

Central Level Regulatory Updates

State Level Regulatory Updates