The Indian government has announced a bold new plan to add 50 GW of renewable energy capacity each year for the next five years. This plan is part of the government’s goal of achieving 500 GW of installed electricity capacity from non-fossil fuel (renewable energy and nuclear) sources by 2030. The announcement was made by Union Minister for Power & NRE Shri RK Singh during a recent meeting of the Ministry of New & Renewable Energy (MNRE).
India’s Renewable Energy Progress
As of February 28, 2023, India has a total renewable energy capacity of 168.96 GW. This includes 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. With 82 GW of renewable energy currently in the implementation stage and 41 GW under tendering, the government’s new plan is expected to add 250 GW of renewable energy and help reach the goal of 500 GW by 2030.
Bid Plan to Stimulate Renewable Energy Development
The government’s bid plan for 50 GW of renewable energy capacity each year for the next five years is intended to provide a stimulus to the renewable energy sector. According to Union Minister Shri RK Singh, the structured bidding plan will provide sufficient time for renewable energy developers to plan their finances, develop their business plans, and manage their supply chains more efficiently. The Minister also called this a “golden opportunity” for the industry to invest in the renewable energy sector.
Quarterly Bid Plan for FY 2023-24
In addition to the annual bid plan, the MNRE has also declared a quarterly plan for the first financial year of the initiative (FY 2023-24). The plan includes bids for at least 15 GW of renewable energy capacity in each of the first and second quarters (April-June 2023 and July-September 2023), and at least 10 GW in each of the third and fourth quarters (Oct-December 2023 and January-March 2024).
Renewable Energy Implementing Agencies (REIAs)
The government has designated three agencies as Renewable Energy Implementing Agencies (REIAs) – Solar Energy Corporation of India Ltd (SECI), NTPC Ltd, and NHPC Ltd. The government has now decided to also notify SJVN Ltd., a public sector enterprise, as an REIA. These agencies will be permitted to bring out bids for solar, wind, solar-wind hybrid, RTC RE power, and more, with or without storage, based on their assessment of the renewable energy market or as per government directions.
The government’s plan to add 50 GW of renewable energy capacity annually for the next five years is a major step towards the goal of 500 GW of installed electricity capacity from non-fossil fuel sources by 2030. The structured bidding plan and the quarterly bid plan for FY 2023-24 are expected to provide a stimulus to the renewable energy sector and provide sufficient time for developers to plan their finances and manage their supply chains. The addition of SJVN Ltd. as a Renewable Energy Implementing Agency is a welcome move and will further strengthen the country’s efforts to transition to clean and renewable energy sources.