To achieve target of 500 GW by 2030, India to add 50 GW of renewable energy capacity annually for next 5 years

The Indian government has decided to invite bids for 50 GW of renewable energy capacity annually for the next five years, beginning with Financial Year 2023–24 until 2027–28, to achieve 500 GW of installed electricity capacity from non-fossil fuel sources by 2030.

This is in keeping with Prime Minister Narendra Modi's announcement of this target at COP26.

These bids will also call for the installation of wind power facilities with an annual capacity of at least 10 GW that are linked to the Inter-State Transmission System (ISTS). The Ministry of New & Renewable Energy finalized this plan at a meeting chaired by Union Minister for Power & NRE RK Singh last week, an official press release said on Wednesday.

Speaking at the meeting, Union Minister Singh said that the government's announcement of the trajectory for adding short-term and long-term RE capacity is a significant step toward achieving the target of 500 GW of non-fossil fuel capacity by 2030 and towards a more rapid energy transition.

According to Secretary MNRE BS Bhalla, the bidding trajectory will also make it possible for electricity purchasers, especially distribution corporations, to properly manage their RE buying plans.

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

This capacity increase goes beyond the RE capabilities that would arise via plans like Rooftop Solar and PM-KUSUM of the Ministry, under which bids were directly submitted by different States, as well as capacities that may arise under Open Access Regulations.

Currently, the Government has designated NTPC Ltd., NHPC Ltd., and Solar Energy Corporation of India Ltd. (SECI) as Renewable Energy Implementing Agencies (REIAs) for soliciting such bids. It has been agreed to additionally notify SJVN Ltd, a government of India-owned public sector firm, as a REIA.

Each of the four REIAs would get a portion of the projected bid capacity for FY 2023–2024. According to their analysis of the RE market or in accordance with government directives, the REIAs would be free to publish bids for solar, wind, solar-wind hybrid, and RTC RE electricity, all with or without storage.