Monthly RE Update – March 2024

Monthly RE Update – March 2024

Tenders Issued

• In March 2024, 23 new renewable energy (RE) tenders with a cumulative capacity of 18,235 MW were issued.
• MSEDCL issued solar tenders with a total capacity of 7502 MW. In addition, MSEDCL invited bids for a 1,000 MW ISTS-connected pumped hydro storage tender and 500 MW for a wind-solar hybrid tender.
• SECI floated a 1200 MW ISTS-connected solar tender with 600 MW/1200 MWh energy storage systems (ESS) capacity (ISTS-XV).
• NTPC issued a 1000 MW ISTS connected wind solar hybrid tender (Tranche-VI).
• Adani Electricity Mumbai Limited (AEML) Issued a 600 MW wind tender. UPNEDA invited bids for setting up a 600 MW solar tender in Uttar Pradesh.
• SJVN issued a 600 MW ISTS connected wind tender. In addition, SJVN floated a 600 MW firm and dispatchable power from ISTS connected RE project with ESS in India with “greenshoe option” of additional capacity up to 600 MW.

New RE tenders issued in March 2024

Source: JMK Research

Source: JMK Research

Auction Completed

In March 2024, about 10,825 MW of RE tenders were auctioned, and 8,389 MW capacities were allotted to various RE developers. Of the total allotted capacity, 5,625 MW were solar capacities, and 2,764 MW were hybrid capacities.

JSW Energy secured the maximum RE capacities of 1880 MW this month, followed by Avaada (800 MW) and ReNew (780 MW).

Figure: Winners in the latest RE tenders

Source: JMK Research

Source: JMK Research

Installed Capacity

In February 2024, about 1269 MW solar capacity and 184 MW wind capacity was added in the country, taking the cumulative RE capacity to 183.49 GW.

In FY2024 year till date (Apr 2023 till Feb 2024), about 8.5 GW solar is added and another 2.3 GW of wind capacity is added.

Figure 2.1: RE installations in February 2024

Source: MNRE, JMK Research

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

State wise solar and wind installed capacity in February 2024

In February 2024, Rajasthan added the maximum solar capacity of 715 MW, followed by Gujarat (212 MW), Chhattisgarh (107 MW), Tamil Nadu (80.79 MW) and Madhya Pradesh (50 MW). While Karnataka installed the maximum wind capacity of 101 MW this month.

Figure 2.2: State wise solar and wind installed capacity in February 2024

Source: MNRE, JMK Research

Projects Commissioned

List of key RE projects commissioned in March 2024

Source: JMK Research

Key announcements that were made during the month were:

• The government has inaugurated three solar power projects, which are developed by SJVN in Jalaun and Kanpur Dehat, Uttar Pradesh, with a combined capacity of 200 MW. Additionally, the government has laid the foundation for Bundelkhand Saur Urja Ltd’s 1.2 GW Jalaun Ultra Mega Renewable Energy Power Park in Jalaun, Uttar Pradesh.
• Torrent Power has received a Letter of Award (LOA) from Renewable Energy Management Company Ltd (REMCL) for a round-the-clock grid-connected renewable power project. It involves the installation of 325 MW of RE capacity which includes wind, solar, and battery storage. The tender has been secured at a tariff rate of INR 4.25/kWh for a 25-year period and is expected to get completed within 24 months from the signing of the power purchase agreement (PPA).
  • Torrent Power has also received a LOA from its distribution unit for establishing a 150 MW wind-solar hybrid project with an investment of INR 1825 crore. The hybrid project will supply power at a tariff of INR 3.65/ kWh and this project will be commissioned within 24 months from the signing of PPA. 
• Rays Power Infra has secured three EPC orders for solar projects totaling 520 MWp, including two from a CPSU (Central Public Sector Undertaking) and one from a global renewable energy developer.
• Singareni Collieries Company Limited (SCCL) is planning to set up about 800 MW solar plants on huge reservoirs with the approval of the state government. Wherein, the company is planning to set up a 300 MW floating solar plant on the Lower Manair Dam and a 500 MW solar plant on the Mallanna Sagar reservoir.
• KPI Green Energy has signed a PPA for 200 MWAC (240MWp) grid connected solar project. The company won the capacity under GUVNL’s 800 MW Khavda solar Phase XX tender.
  • The company has also received a Letter of Intent (LOI) for a 50 MW wind solar hybrid project, which was secured under the Gujarat Urja Vikas Nigam Limited (GUVNL) tender.
• JSW Neo Energy, a wholly owned subsidiary of JSW Energy, has received a Letter of Award (LOA) from SECI for a 700 MW inter-state transmission system solar project. JSW has also received a LOA for 500 MW wind capacity from SECI wind power projects (Tranche-XVI).
• Hartek Group secures an EPC contract for a 22 MWp floating solar project with an estimated cost of INR 100 crore in Himachal Pradesh.
• NLC India Green Energy Limited (NIGEL) has inked a PPA with GUVNL for a 600 MW solar power project situated in the Khavda solar park, Bhuj District, Gujarat. The agreement is sealed at a PPA tariff of INR 2.705/kWh.
• Juniper Green Energy collaborates with Suzlon Group for the development of a 72.45 MW wind power project in Gujarat.
• Avaada Energy has received a LOA from MSEB Solar Agro Power Ltd (MSAPL) for the installation of 1140 MW of Agri Solar Projects in Maharashtra. The project involves a greenfield investment of INR 5000 crore and spans across 192 locations in 10 districts of the state.
  • Avaada has partnered with Damodar Valley Corporation (DVC) to establish a 421 MWp solar PV project to supply electricity in Gujarat.
• SJVN Green Energy will develop a 50 MW solar project in Sitamari village, Barsola block, Assam state with an estimated investment of INR 291 crore. The electricity will be supplied to the Assam Development Corporation Ltd at a rate of INR 3.92 per unit.
  • SJVN has entered into two long-term PPAs with Rajasthan Urja Vikas & IT Services Ltd (RUVITL) in Jaipur. Under the first agreement, SJVN will supply 500 MW of power at a tariff of INR 2.57/unit from the 1000 MW Bikaner solar project. For the second agreement, SJVN will provide 100 MW of power at a tariff of INR 2.62/unit from a project acquired through competitive bidding, where LOA was issued by RUVITL.
  • The company has been awarded a LOI by GUVNL for a 500 MW solar project, with an investment of INR 2700 crore. The project is scheduled to be completed within 18 months from the signing of the PPA.
  • SJVN Green Energy has also received a LOI by GUVNL to undertake a 200 MW solar power project in Gujarat. This project, located within the state, will operate at a tariff of INR 2.66 per unit with an estimated project cost of INR 1100 crore.
• Tata Power has been granted a LOA for a 360 MW solar project by the Maharashtra State Electricity Distribution Company (MSEDCL). The commissioning of the project is expected within 18 months from the LOA, with an estimated cost of INR 1,540 crore. The tariff for the project is set at INR 3.10/kWh for a duration of 25 years.
• The Uttar Pradesh Government has agreed with TUSCO, a joint venture between THDCIL and UPNEDA, to start a 600 MW solar project in Jhansi.
• BluPine Energy has successfully closed financing for its 198 MW wind project in Gujarat, secured under the GUVNL wind 3 tender. The project received green loan financing from Standard Chartered Bank and TATA Capital, totaling INR 1260 crores (USD 152 Million).
• Welspun Living announced that its subsidiary, Welspun Flooring (WEF), is planning to invest INR 1.76 crore in Welspun Bhargavi, a special-purpose vehicle for establishing an approximately 8.10 MWp solar power project.
• Ellume Solar has received a LOA from Maharashtra State Power Generation Company (MAHAGENCO) to establish 100 MW grid-connected solar power projects in Aurangabad. By quoting a tariff of INR 2.97 per kWh, Ellume secured the project to deliver electricity to agricultural feeders on a public-private partnership model as a part of Mukhyamantri Saur Krishi Vahini Yojna.
• NHPC has been issued a LOI by GUVNL to develop a 200 MW Renewable Energy Park at Khavda in Gujarat. The estimated cost of this project would be INR 847 crore. The project, secured at a tariff of INR 2.66 per unit, is slated for completion within 18 months.
• Gensol Engineering announced the installation of a 160 MW solar power project at Bhavnagar in Gujarat, which cost INR 128 crore.
• The company also secured a solar PV power project with a capacity of 100 MWAC/135 MWp in the state with an estimated cost of INR 520 crore.
• GameChange Solar secured a contract to supply its Genius Tracker solar trackers for ACCIONA Energia’s new 412.5 MWp solar PV project in Rajasthan. The contract was signed with Waaree Renewable Technologies, the EPC contractor for the project. The plant is scheduled for set up in 2024, comprising 750,000 PV modules.
• Bondada Engineering, an EPC company, won the EPC contract from Singareni Collieries Company (SCCL) for a 67.5 MW solar power project in Telangana. Bondada will also be responsible for the project’s operation and maintenance for ten years.
• Roofsol Energy has secured a deal with Shree Cement Limited to develop solar projects totaling 10.5 MWp capacity. These ground-mounted projects, known as ‘Behind the Meter,’ are set to be executed in Uttarakhand and Jharkhand.

Monthly RE Generation

In March 2024, Renewable energy sources generated 16,789.31 MU, which is 13% higher than the RE generation in February 2024. Solar and Wind generation increased by around 23.5% and 3% on a month-on-month basis in March 2024.

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

Source: CEA, JMK Research

Investments/ Deals

In March 2024, a total of 395 million was raised in the RE sector in India. The key investments during the month were:

• BluPine Energy has completed the acquisition of 369 MW of solar power assets from Acme Group. The 369 MW of solar capacity power assets are spread across Uttarakhand, Punjab, and Karnataka.
• Ampin Energy has received 25-million-euro investment from OeEB, the Development Bank of Austria in long-term financing to support the company’s renewable energy expansion plans and establishing a local 1 GW solar cell and module production facility in Odisha.
• JSW Renewable Energy has signed an agreement with Reliance Power to acquire its 45 MW wind power project in Vashpet, Maharashtra, for INR 132 crore. The deal is likely to be completed by May 21, 2024. The proceeds from the sale will be used to retire the debt. Reliance Power is aiming to be a debt-free company by the end of this financial year.

Table 4.1: Investment and deal in March 2024

Source: Industry news articles, JMK Research

Other important announcements that were made during the month were:

• UltraTech announced to acquire 26% equity of O2 Renewable Energy SPV. This will help the Aditya Birla Group firm meet green energy needs, optimize energy costs, and comply with regulatory requirements for captive power consumption under electricity laws.
• REC Limited has listed two significant bonds on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), aggregating over INR 5,375 crore. The first bond, with a 10-year maturity, is valued at INR 2,500 crore and boasts a yield of 7.47%, set to mature on February 28, 2034.
  • The second bond, amounting to INR 2,875 crore, has a shorter maturity period of 3 years and two months, offering a yield of 7.64%, with its redemption date fixed for April 30, 2027.
• Adani Group offers a first dollar bond of $409 million after a report last year by short seller Hindenburg Research. The conglomerate’s solar energy unit, Adani Green Energy Ltd, and associated firms are offering the 18-year note at initial price guidance in the 7.125% area.
  • The Adani Group plans to invest more than INR 1.2 lakh crore across its business portfolio, with a significant emphasis on renewable energy by FY 2025. Approximately 70% of this investment will be allocated to the green energy sector, encompassing renewable power, Green Hydrogen, and green evacuation. The remaining 30% will be dedicated to expanding its airports and port businesses year.
• Edelweiss Infrastructure Yield Plus Fund is leading the race to acquire 350 MW of solar projects from O2 Power. The deal is expected to be valued at $50 million in equity and $200 million in enterprise.
• GP Eco Solutions India, a provider of integrated solar energy solutions, has submitted its Draft Red Herring Prospectus (DRHP) to NSE Emerge. The Initial Public Offering (IPO) includes a fresh issue of 32.76 lakh equity shares, each with a face value of INR 10.
  • As per the DRHP, the IPO proceeds of INR 12.45 crore are intended for meeting the company’s working capital needs, with an additional investment of INR 7.6 crore in its subsidiary, Invergy India Private Limited (IIPL), for plant and machinery procurement and a new facility setup. The remaining funds will be allocated for general corporate purposes.
• NTPC has entered into a pact with a Japanese agency to secure foreign currency loans amounting to USD 200 million (JPY 30 billion or approximately INR 1650 crore).
  • The agreements have been signed for a JPY 15 billion loan each for NTPC Ltd and NTPC Renewables Energy Ltd (NREL). The loan proceeds shall be utilized by NREL to fund its capex for renewable energy projects, which would facilitate its mission of providing reliable, affordable, and sustainable energy.
• NHPC has signed a loan agreement of JPY 20 billion (about 1100 crore) with Japan Bank for International Cooperation (JBIC) for establishing a 300 MW solar project in Bikaner, Rajasthan.
• The French company Electricite de France SA (EDF) aims to sell some of its clean energy assets in India to reduce its debt, which exceeds $50 billion.
  • EDF has enlisted Rothschild to manage the sale and has approached various global infrastructure investors like KKR, Actis, CDPQ, Sembcorp, and domestic players such as JSW, Torrent, and Edelweiss Infrastructure-backed Sekura Energy.
• Indian Renewable Energy Development Agency Ltd’s (IREDA) board approved a proposal of INR 24,200 crore borrowing for 2024-25.
  • The borrowing includes fundraising through bonds, perpetual debt instruments (PDI), term loans, commercial papers, and external commercial borrowings (ECB).
• Luminous Power Technologies has partnered with Credit Fair to provide affordable solar financing options for various customers, including individuals, trust-run institutions, housing societies, and MSMEs, facilitating the adoption of clean energy systems.
  • Through this collaboration, customers can access comprehensive solar solutions with advanced technology and financial assistance at competitive interest rates ranging from 9% to 9.75% per annum.
  • This partnership offers easy EMI options for up to 7 years and allows loan prepayment without additional charges.
  • Retailers and commercial entities can obtain loans ranging from INR 50 lakh to INR 2 crore for rooftop solar installations.

GTAM Traded volume

The IEX traded a total of 15 MUs in GTAM in January 2024, which is same as the volume traded in December 2023. The average trade price in IEX-GTAM for January 2024 was INR 6.56/kWh. This is about 7.9% lesser than the previous month’s price.

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 March 2024.

Figure 7.1: Solar Modules Price trends

Source: PVInfoLink, JMK Research

JMK Research carried out price survey from domestic suppliers for March 2024 and as per the responses received, the all-inclusive domestic module prices till project site (including freight charges, GST etc) for various categories are:

• The prices for mono PERC 500 Wp and Bifacial modules have remained same in March 2024.
• The price for Polycrystalline 330 Wp modules was INR 19/Wp, which is about 0.4% less than the previous month’s price.

Fig 7.2: 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

Ampin Energy partners with Jupiter International to set up 1.3 GW solar cells & modules in Odisha

• Ampin Energy partners with Jupiter International to establish a 1.3 GW solar cells and modules manufacturing facility in Bhubaneswar, Odisha, benefiting from the government’s production-linked incentives (PLI) scheme.
• The produced modules will be utilized by Ampin locally and also supplied to third-party developers.

Luminous launches 250 MW solar panel factory in Uttarakhand

• Luminous Power Technologies has opened a new solar panel factory in Rudrapur, Uttarakhand, covering 10 acres and boasting a 250 MW capacity.
• The plant, completed in just nine months, features state-of-the-art manufacturing technologies and EL testing capabilities, producing polycrystalline, monocrystalline, n-Type, and TOPCon panels, both monofacial and bifacial, with busbar options ranging from five to 16.

Green Hydrogen

Indian Oil Company Ltd (IOCL) restarts tender to install a green hydrogen production unit.

• IOCL is set to reissue a tender to establish a green hydrogen production unit. The decision comes as part of an INR 2.4 trillion green transition initiative to achieve net-zero carbon emissions by 2046, with plans to install units at all refineries.

L&T commissions a 1 MW Green Hydrogen Electrolyser in Gujarat

• Larsen & Toubro (L&T) has commissioned its first domestically built electrolyzer at the green hydrogen plant in Hazira, Gujarat, located at the AM Naik Heavy Engineering Complex. The electrolyzer, with a rated capacity of 1 MW (expandable to 2 MW), can produce 200 Nm3/Hr of hydrogen.

Greenzo Energy introduced a 1 MW alkaline green electrolyzer to produce green hydrogen.

• Greenzo Energy India is establishing a manufacturing unit with a yearly capacity of 250 MW for electrolyzers. Additionally, the company plans to produce up to 5 MW single stacks using alkaline-based technology at its facility in Sanand -2 industrial area, GIDC Ahmedabad, Gujarat.

NTPC partners with RVUNL to set up 25 GW RE and 1 MT green hydrogen projects in Rajasthan

• NTPC and Rajasthan Rajya Vidyuth Utpadam Nigam Ltd (RVUNL) have inked a deal to set up 25 GW of renewable energy capacity and produce 1 million tonnes of green hydrogen derivatives in the state.

Odisha approves INR 54810 crores for Green Hydrogen & Solar Manufacturing projects.

• The Odisha Government has approved a total budget of INR 80,125 crores across seven key projects in different sectors. Out of this, INR 54,810 crore is allocated for green projects.
  • EG Solwin Hybrid Pvt Ltd is investing INR 6,330 crore to establish a 0.3 MT green ammonia production unit at the TATA SEZ.
  • Waaree Clean Energy Solutions is contributing INR 12,480 crore for the setup of a 1.2 MMTA green ammonia plant in Jagatsinghpur.
  • Acme Greentech Urja Pvt Ltd has invested INR 36,000 to establish an integrated manufacturing unit in Khurda to produce solar panels. The remaining INR 25,315 crore is earmarked for various sectors including steel, pharmaceuticals, and chemicals.

Adani Group invests INR 28,000 crore to establish pumped storage projects in Madhya Pradesh

• The Adani Group will invest INR 28,000 crore to set up 3.4 GW pumped storage projects in Madhya Pradesh. Prior to this, the Adani Group had committed to investing INR 24,500 crore for establishing pumped storage projects in Tamil Nadu over the next five to seven years.
• Additionally, the group is investing another INR 5,000 crore in Telangana to set up 1.35 GW of pumped storage projects.

GAIL to launch first green hydrogen project in Madhya Pradesh

• GAIL Ltd is set to debut its inaugural green hydrogen venture in April 2024, featuring a 10 MW proton exchange membrane electrolyzer situated at the Vijaipur complex in Madhya Pradesh. 
• This unit aims to generate approximately 4.3 metric tons of hydrogen daily, boasting an exceptional purity level of about 99.99% by volume. The produced green hydrogen will be utilized to support renewable energy initiatives.

Sterling Generators partners with Tecnicas Reunidas to set up 1 MWe electrolyzers for green hydrogen production

• Sterling Generators has entered into an agreement with Tecnicas Reunidas to collaborate on the development of a 1 MWe hydrogen electrolyzer.
• The commissioning of the electrolyzer is scheduled for the last quarter of 2024, with plans to subsequently scale it up to 10 MW.

SECI issued a tender to install 1.5 GW Electrolyser Manufacturing unit under the SIGHT II Scheme in India

• SECI issued a tender for setting up manufacturing capacities for electrolysers in India under strategic Interventions for green hydrogen transition (SIGHT) scheme (Tranche-II).
• The capacities will be allocated in separate bucket based on the stack technology proposed by the bidders. The total capacity is divided into the two buckets as follows:
• The last date for the bid submission is April 30, 2024

India could produce Green Hydrogen at $1.8/kg by 2030

• The United Arab Emirates (UAE) leads in green hydrogen competitiveness, with the world’s lowest levelized cost of hydrogen (LcoH) at $2.7/kg in 2023, projected to decrease to $1.7/kg by 2030.
• Following closely, Saudi Arabia ranks second with a LcoH of $2.9/kg in 2023, expected to drop to $1.8/kg by 2030.
• In comparison, India is projected to produce green hydrogen at a LcoH of $3.2/kg in 2023, reducing it to $1.8/kg by 2030.

Up to 15% of India’s green hydrogen manufacturing expected to shift out due to global incentives

• India expects that up to 15% of the green hydrogen manufacturing might shift out of India as a result of global incentives offered in the US and Europe.
• Domestic companies will stand at risk of losing out to competition from both the US and Europe as these schemes bring costs to low levels.

NRL to integrate green hydrogen production with an aim to achieve net zero emissions by 2038

• Numaligarh Refinery Limited (NRL) is planning to introduce green hydrogen production into its operations, with an aim to achieve net-zero emissions by 2038.
• The refinery has outlined plans to set up hydrogen electrolyzers that will commence the production of green hydrogen by mid-2025.

Energy Storage

SECI plans to install a 1385 kW Grid-connected solar project with BESS in Lakshadweep under RESCO mode

• SECI is planning to issue a tender for project developer for setting up 1385 kW grid-connected solar PV projects with battery energy storage system (BESS) in Lakshadweep under RESCO Mode via Tariff Based Competitive Bidding. The projects include:
  • Amini Island: 240 kW SPV Project with 24 kW, 12 kWh BESS
  • Androth Island: 500 kW SPV Project with 50 kW, 25 kWh BESS
  • Bitra Island: 45 kW SPV Project with 120 kW, 480 kWh BESS
  • Kadmat Island: 600 kW SPV Project with 200 kW, 600 kWh BESS

JSW Energy partners with SECI for 250 MW/500 MWh battery Energy storage project

• JSW Energy has secured an agreement for 250 MW/500 MWh of standalone battery energy storage with SECI. This constitutes the first phase of a larger 500 MW/1,000 MWh project awarded by SECI, comprising two 250 MW/500 MWh projects.
• JSW Energy’s subsidiary, JSW Renew Energy Five, will receive a fixed capacity charge of INR 10.84 lakh ($13,077) per MW per month for 60% of the total capacity (150 MW/300 MWh) over twelve years.  The remaining 40% (100 MW/200 MWh) will be managed by the company. The project is obligated to deliver the contracted capacity within 18 months.

Goodenough Energy plans to install 20 GWh energy storage factory in Jammu & Kashmir

• Goodenough Energy announced plans to launch India’s largest BESS gigafactory, aimed at enhancing grid stability, with an initial capacity of 7 GWh.
• The Giga factory is slated to begin operations by October 2024, with a projected capacity of 20 GWh by 2026.
• It will specialize in manufacturing advanced battery energy storage systems for industrial use.

SECI plans to install 250 MW/500 MWh BESS in India under the VGF support (Tranche-I)

• SECI is planning to issue a tender for 250 MW/500 MWh Standalone Battery Energy Storage Systems in India under Tariff-based Competitive Bidding with Viability Gap Funding (Tranche-I).
• The tender will be released soon in compliance with the relevant guidelines of the Government of India.

Other Market Updates

Maharashtra sets 3 million residential rooftop solar system target

• The Maharashtra State Electricity Distribution Company (MSEDCL) aims to install 3 million rooftop solar systems on houses in the state under the Pradhan Mantri Surya Ghar Muft Bijli Yojana. The region-wise rooftop solar system targets are as follows: Chhatrapati Sambhaji Nagar region-407500; Konkan region, 934,600; Nagpur region,892,500; and Pune region, 765,400. Under the new program, a subsidy is provided for different capacities:
  • Up to 2 kW – INR 30,000/kW
  • Over 2 kW and up to 3 kW – INR 18,000/kW
  • Greater than 3 kW – the total subsidy capped at INR 78,000

Pump Hydro Storage and FDRE tenders accounted for 91% of the entire ESS tender issuance in 2023

• Over the years, grid-scale ESS tendering has had various iterations and tender types including solar + BESS, peak power supply, Round the Clock (RTC), standalone ESS.
• Until 2021, only 1,794 MW of grid-scale ESS capacity was awarded, excluding cancelled or dormant tenders.
• In 2023, two new entrants to ESS tender evolution have taken centre stage i.e. Pumped Hydro Storage (PHS) and firm and dispatchable Renewable Energy (FDRE).
• Together, they accounted for around 91% of the entire ESS tender issuance in 2023.

Uttar Pradesh (UP) provides subsidies to 54,000 farmers under the PM Kusum Yojana

• In 2024-25, the UP government plans to offer subsidized solar pumps to over 54,000 farmers. To access the subsidy, farmers need to register online at www.agriculture.up.gov.in and pay a nominal fee of 5000.

India’s energy subsidies rose to INR 3.2 lakh crore in FY 2023

• India’s energy subsidies reached a record INR 3.2 lakh crore in FY 2023, marking a 9-year high. This surge is a response to heightened energy demands amid the 2022 global energy crisis. The increase is attributed to India’s broad-based strategy to enhance energy supply.
• India implemented measures such as capping retail prices for petrol, diesel, and domestic liquefied petroleum gas, reducing taxes, and providing direct budgetary transfers to businesses and consumers.

India needs the most advanced battery storage ecosystem with over 238 GWh of capacity to support 500 GW non-fossil energy target by 2032

• India needs an advanced battery energy storage system (BESS) ecosystem with over 238 GWh of capacity to support its targeted non-fossil energy capacity of 500 GW by 2032.
• India is poised for rapid deployment of BESS and pumped hydro to complement the renewable energy deployments as part of the ambitious targets set by Indian government.

Policies and Regulations

Central Level Regulatory Updates

State Level Regulatory Updates