MNRE Sets Renewable Energy Bidding Trajectory of 50 GW Annually Until 2028
At least 10 GW of wind tenders will be issued annually
The Ministry of New & Renewable Energy (MNRE) will issue renewable project bids worth 50 GW annually for the financial years (FY) 2024-28, which includes at least 10 GW of wind tenders.
Industry stakeholders, especially developers, have been demanding a predictable bidding trajectory, which they have argued would help them prepare better for competitive bids. Additionally, it would also help iron out grid connectivity issues and provide more visibility and certainty for upcoming tenders, besides attracting more international capital.
Mercom had earlier written about stakeholders emphasizing the need for a clear tender trajectory to mitigate project risks for developers and enable more efficient financial planning and supply chain management.
The tender trajectory for FY24 entails a schedule of at least 15 GW of renewable capacity for the first two quarters and at least a minimum of 10 GW in the last two quarters.
The bids may consist of vanilla solar, vanilla wind, solar-wind hybrid, round-the-clock renewable energy power, with or without storage, or any other combination, based on the assessment of the renewable energy market or as per the directions of the government.
The year-wise targeted bid capacity would be allocated among the government’s renewable energy implementing agencies (REIA). The bids must be floated according to standard bidding guidelines issued by the government and MNRE’s instructions relating to renewable energy tenders.
REIAs may issue bids in coordination with other implementing agencies to avoid concurrent bids.
India has set ambitious goals for renewable energy to combat climate change and reduce reliance on fossil fuels. The government has committed to achieving 50% of its installed power capacity from non-fossil fuel-based energy resources by 2030 and reducing the emissions intensity of its GDP by 45% compared to 2005 levels.
Further, MNRE has been working to achieve 500 GW of installed electricity capacity from non-fossil sources by 2030.
As of February 2023, India’s renewable energy installed capacity stands at 168.96 GW, with 82.62 GW under implementation and 40.89 GW under the tendering process.
Currently, the renewables sector has to deal with central and state governments issuing tenders haphazardly, which makes it hard for project developers to effectively plan their finances and secure supplies of components at competitive prices.
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