As the country works to achieve its 2030 clean power goal, India will more than increase the capacity of auctions used to distribute renewable energy projects. During the year through March 2024, the federal government intends to reach agreements on the installation of 50 gigawatts of solar and wind projects. In the previous five fiscal years, there were on average 15 gigawatts of electricity auctioned each year.
To meet a target of 500 gigawatts of renewable energy generation capacity by 2030, which will include include hydroelectric and nuclear plants, the country is speeding up project installations.
The need for fresh investment has been highlighted by the rising need for power, but projects in India face difficulties like high lending rates and competition from industrialised countries giving green subsidies. BNEF analyst Rohit Gadre, delivering more renewables projects will also require enough land to put the installations and long-term electricity customers. According to Gadre, these elements are "critical to the success of the plan, failing which it is likely that the tenders will be under-subscribed."
While there is increased interest in contracts from the commercial and industrial sector, rising energy demand is encouraging some governments to pursue new long-term renewable power arrangements to supplement current coal-fired capacity.
The government's calendar indicates that India intends to offer 15 gigawatts of projects for auction in each of the first two quarters of the fiscal year, which started this month, and around 10 gigawatts in each of the two following quarters. The auctions will be administered for the government by state-owned power firms Solar Energy Corp. of India Ltd., NTPC Ltd., NHPC Ltd., and SJVN Ltd. The programme "will give developers visibility," according to Subrahmanyam Pulipaka, CEO of the National Solar Energy Federation of India, a trade association. "There will inevitably be more traction."