India Plans to Auction 40 GW Renewables Per Year for Next 10 Years

“We have to do 350 GW in solar (to meet demand by 2030), of which 100 GW is planned till 2022. So we have to bid out at least 30 GW each year from 2020 onwards to achieve additional 250 GW.”

renewable energy goals India

To boost the local manufacturing and help developers of the country, India has decided to auction 40 GW of renewable energy projects which would include 30 GW of solar and 10 GW of wind energy for the next 10 years till 2028.

“We have 30 GW solar energy bidding plan for 2018-19 and 2019-20. This 30 GW auction per annum would continue till 2028. Similarly, we have to auction 10 GW of wind energy for next 10 years till 2028 to meet the power demand of 862 GW by 2030,” New and Renewable Energy Secretary Anand Kumar told reporters at the Global Wind Day celebration by the Indian Wind Turbine Manufacturers Association (IWTMA).

He further added, “We have to do 350 GW in solar (to meet demand by 2030), of which 100 GW is planned till 2022. So we have to bid out at least 30 GW each year from 2020 onwards to achieve additional 250 GW.”

Kumar further said, “Therefore, we have to do 10 GW every year till 2028 to meet the overall power demand of 862 GW by 2030. India has already achieved 70 GW of renewable energy capacity including 22 GW of solar and 34 GW of wind.”

About the best bidding mechanism, he said, “We have engaged IIM Lucknow for preparing a detailed report on merits of close envelop auction and reverse bidding method. They are expected to give their report in July. The government will take a call only after that.”

Kumar explained that some players had expressed concerns that the bidders with deep pockets can hurt small developers by outbidding them in auctions for renewable projects.

However, he also admitted that tariff-based reverse auction helps in achieving the best pricing.

Under the close envelop auctions, the bid price cannot be changed whereas in reverse auction, the bid price is known and bidders can outbid each-others.

He said the 500 MW capacity in Bhadla Phase-III Solar Park, Rajasthan — which witnessed lowest solar tariff of Rs 2.44 per unit last year in May — would be commissioned in August this year.

PTI

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