NTPC Announces Two Projects

Suzlon Group secured India’s largest wind energy order for a 1,166 MW project in Gujarat, in a deal with NTPC Green Energy Limited. The project is set to power three million households upon completion.

Project details:

Suzlon will install wind turbine generators (WTGs) of S144 equipped with a Hybrid Lattice Tubular (HLT) tower as part of the agreement.

The project entails setting up 370 wind turbine generators (WTGs) at three locations in Gujarat, each with a rated capacity of 3.15 MW.

Two projects are run by NTPC Renewable Energy, and the third is a joint venture between NTPC Green Energy and Indian Oil.

“This project will emerge as the largest wind energy initiative by a PSU in Gujarat, cementing the state’s leadership in renewable energy,” said Girish Tanti, Vice Chairman, Suzlon Group.

NTPC’s net-zero push:

NTPC Limited and CII-IGBC have signed a memorandum of understanding to collaborate on setting net-zero standards for industrial townships and office buildings in India.

The two organizations will collaborate to develop certification programs, standards, and policies. The project intends to increase stakeholder capacity while converting office buildings and industrial townships into sustainable, energy-efficient spaces.

NTPC is pursuing net-zero energy and water certifications for various locations, demonstrating its commitment to sustainability and climate change mitigation.

The agreement was signed by Dr. Vijay Prakash, Executive Director, SSEA and Environment Engineering at NTPC, and K S Venkatagiri, Executive Director, CII, in the presence of NTPC Director of Operations, Ravindra Kumar.

Backdrop:

It must be noted that NTPC, in collaboration with NITI Aayog, signed a 2022 Statement of Intent to establish a plan for achieving net-zero GHG emissions in line with the Indian government’s Panchamrit objectives.

The Global Wind Energy Council (GWEC) has appointed Mr Girish Tanti, Vice-Chairman of Suzlon Group, as its India Chair.

Mr. Tanti, who previously served as Vice-Chair of the, is now taking on a dual role with the council.

GWEC India’s position is crucial for fostering momentum and policy frameworks to unlock India’s vast wind energy potential and supply chains, both onshore and offshore.

Mr Tanti said, “Ranked fourth in the world, India is one of the most crucial countries for Wind Energy, today. There is a unanimous global consensus that India will play an instrumental role in accelerating the tripling of renewables and helping achieve global renewables and energy transition targets not just in installations but also as a key player in the global supply chain. As India Chair of GWEC, I am committed to enhancing the platform’s impact in India and leveraging its strength to promote the Indian Wind Energy sector globally.”

Ben Backwell, CEO, GWEC, said, “The Global Wind Energy Council has a long, successful history with the Tanti family, and we are delighted to welcome Mr. Girish Tanti to the position of GWEC India’s Chair.”

The wind power sector which dominated the renewable energy basket of India, has lost its leading position to solar power in the past few years.

Even though the wind is infirm, it can still generate energy at night.

However, the capacity addition, which picked up momentum in FY2012 with an addition of 3196.66 MW, slid drastically in the following years. It was only in FY2017 that the country saw the capacity addition crossing the 5 GW mark (5364.78 MW).

The stakeholders have bet over the past ten years on adding 5 GW annually to facilitate the energy transition. However, the sector has been plagued by several problems, including funding issues.

That is not all, the segment has seen a major transition- from WT manufacturers to IPPs, which also affected capacity addition in the last decade. Though the wind power market has evolved both in terms of technology and pricing, it continues to struggle.

However, a new report by the rating agency Crisil shows some green shoots.

As per their observation, the nation’s wind capacity addition is anticipated to increase from 9 GW between fiscal years 2021 and 2024 to nearly 25 GW between fiscal years 2025 and 2028, a 2.5-fold increase. That is more than twice as much as the most recent capacity addition. This also calls for an investment (capex) to the tune of Rs 1.8–2 lakh crore.

Variable data:

According to Crisil’s analysis, India increased its wind capacity by 3.0 GW annually between the fiscal years 2014 and 2018. The Ministry of New and Renewable Energy’s data, however, paints a different picture and indicates that, during this time, capacity addition ranged from 1865 MW to 5502 MW. This is supported by other reference data points such as that of the National Institute of Wind Energy and the IWTMA.

The pace did slow down to an average of 1.7 GW between fiscals 2018 and 2023 owing to a lack of connected sites with high wind potential and diminished returns for developers from aggressive bidding.

So what will enhance the wind capacity addition?

a) A ramp-up in auctions of wind and hybrid projects (including storage-linked projects)

b) By constructing transmission infrastructure to wind sites

c) Improved financial profiles of wind original equipment manufacturers (OEMs)

d) Viable tariff bids

The policies/ initiatives rolled may strengthen the prospects of the wind sector.

For instance, the government has set a target to auction 50 GW of renewable projects every year, including 10 GW of standalone wind projects for specifically reinvigorating wind capacity additions. This has already led to the auction of around 5 GW standalone wind projects since the start of fiscal 2023, vis-à-vis around 3 GW auctioned in fiscal 2021 and 2022.

Auctions of hybrid and storage-linked projects are also on the rise—up from 4 GW in fiscals 2021 and 2022 to nearly 18 GW in fiscals 2024 and 2023.

The way forward:

Crisil observes that as transmission connectivity and wind OEMs’ financial standing have improved, supply-side constraints have begun to ease.

Additionally, the government is developing transmission infrastructure to improve connectivity to sites with high wind potential and plans to increase connected capacity for wind sites from ~50 GW as of December 20224 to ~75 GW by March 2025 and ~100 GW by December 2027.

That said, these estimates remain sensitive to progress on the construction of transmission infrastructure and prices of steel and cement, which could impact the cost of projects and, thereby, the viability of current tariffs.

India aims to achieve 500 GW of renewable energy capacity by 2030, with 40-50 GW of additional capacity over time.

India is expected to see an 83% increase in investments in renewable energy projects to around USD 16.5 billion in 2024, driven by the country’s focus on energy transition and carbon emissions reduction. The Solar Energy Corporation of India (SECI) has called for incentives for green hydrogen production and electrolyzer manufacturing facilities. 21 companies have bid for incentives under the SIGHT Scheme.

India’s solar power generation has surged due to sunlight and government incentives, with the top five states leading the charge in the country’s solar revolution, highlighting their unique contributions to the country’s renewable energy landscape.

Similarly, India has made great strides in the generation of wind energy over the years, and it now ranks fourth in wind power capacity in the world. India’s wind energy production holds significant potential for both onshore and offshore use, crucial for achieving Net Zero by 2070, and 50% of its electric power installed capacity from non-fossil fuels. The government has successfully developed around 15 GW of domestic wind manufacturing capacity, making the country Aatma Nirbhar.

The trends show that opportunities for all the stakeholders in the renewable energy segment have increased exponentially.

Top solar and wind power projects in the country:

India aims to achieve 500 GW renewable energy capacity by 2030, with 40-50 GW capacity additions. India’s National Institute of Wind Energy (NIWE) has launched the Wind Atlas, estimating its onshore wind potential at 1,164 GW at 150 meters above ground level.

1. Rajasthan, India’s “Land of Kings,” is a major solar power producer with the world’s largest Bhadla Solar Park and India’s largest wind park, Jaisalmer Wind Park. The state is exploring energy storage options to maximize solar power use and improve system stability. Rajasthan has been recognized for achieving the highest wind capacity addition, Gujarat for open access, and Tamil Nadu for repowering wind turbines.

2. Karnataka has become India’s solar powerhouse, with the Pavagada Solar Park near Tumkur. With a capacity of over 2,050 MW, the park captures sunlight, increasing energy demands and boosting regional economic development. Key accomplishments include capacity expansion, building solar parks, increasing rooftop solar installations, attracting investors, and promoting renewable energy adoption.

3. Gujarat, India’s “Jewel of the West,” is a leader in solar energy installations, with over 790 MW capacity and promoting rooftop solar rooftops. As of April 2023, Gujarat had over 10 gigawatts of installed wind power, which was almost one-fourth of the total wind capacity installed in the country.

4. Tamil Nadu, India’s south, leads in renewable energy, particularly solar power generation, with over 3,500 MW of capacity. It also pioneered solar energy farming, providing additional revenue for farmers. With an installed wind energy capacity of 10,247 MW, the state accounts for 23% of the total installed (wind energy) capacity across India and ranks second in the country.

5. Telangana, India’s youngest state, has significantly increased its solar power capacity with the Bhongir Solar Park, which has a capacity of over 1,000 MW. The park’s solar panels reduce the state’s reliance on traditional energy sources and contribute to sustainability. Telangana’s progressive solar policy encourages solar project development and has also deployed solar-powered pump sets in the agricultural sector.

Policy drives growth in the renewable energy segment:

India’s government aims to reduce carbon emissions by 1 billion tonnes by 2030, reduce economy intensity by 45% by the end of the decade, and achieve net-zero emissions by 2070.
Solar parks: The government is promoting solar cities and parks, with 57 parks of 39.28 GW across the nation.
National Green Hydrogen Mission: The Union Cabinet approved the National Green Hydrogen Mission with a total initial outlay of INR 19,744 Cr, including an outlay of INR 17,490 Cr for the SIGHT program, INR 1,466 Cr for pilot projects, INR 400 Cr for R&D, and INR 388 Cr towards other Mission components.
Off-shore Wind Energy: The medium and long-term targets for off-shore wind power capacity additions are 5 GW by 2022 and 30 GW by 2030.
Wind-Solar Hybrid Policy: In 2018, a national policy was announced to promote an extensive grid-connected wind-solar PV hybrid system for efficiently utilizing transmission infrastructure and land. A way to address the intermittency challenge of one renewable power source is to combine solar and wind, achieving better grid stability. It provides flexibility in a share of wind and solar components in the hybrid project; however, the capacity of one resource must be at least 25% of the rated power capacity of other resources.
AatmaNirbhar Bharat: PLI scheme in Solar PV manufacturing with financial outlays of INR 24,000 Cr introduced under AatmaNirbhar Bharat. Imposition of Basic Customs Duty of 25% on Solar Cell & 40% on Solar PV Modules w.e.f. 01.04.2022.
The Coal Ministry held an Industry Interaction in Hyderabad to promote coal/gasification projects in India. Secretary Shri Amrit Lal Meena highlighted the government’s support for cleaner coal technologies and energy security through easier land availability, financing, and incentives. Industry experts discussed opportunities, R&D efforts, including opportunities in coal gasification, R&D efforts, Blue Hydrogen Coal Gasification linked with Carbon Sequestration, High Ash Coal Gasification, and Upscaling R&D in High Ash Coal Gasification.

Prospects:

In the Union Budget 2022-23, the government allocated Rs. 19,500 crore (US$ 2.57 billion) for a PLI scheme to boost the manufacturing of high-efficiency solar modules.

India launched the Mission Innovation CleanTech Exchange, a global initiative that will help accelerate clean energy innovation.

In the last five years, the country’s solar installed capacity has experienced a monumental transformation, increasing from 21,651 MW to 70,096 MW in 2023. With ambitious targets and policies like the Production Linked Incentive (PLI), India is propelling itself to achieve 500 GW of renewable energy capacity by 2030.

The Indian offshore wind market is expected to accelerate towards 2027 with annual installations increasing from 1.8 GW in 2022 to 2.8 in 2023, 3.7 GW in 2024, and peaking at 5 GW in 2025 in the base case. Overall, India’s wind market offers an opportunity for 21.1 GW of installations from 2023-2027.

The International Institute for Sustainable Development (IISD), a recognized independent think tank dedicated to advancing solutions for equitable resource management, a stable climate, and fair economies, highlights the steps taken by the Indian Navratnas to embrace sustainable alternatives in their economies.

India’s Government-Owned Energy Companies, 2020–2050: Determining strategies for evidence-based diversification written by Christopher Beaton, Andrea M. Bassi, Georg Pallaske, Swasti Raizada, and Balasubramanian Viswanathan, highlights PSU’s approach to utilizing RE.

The Union government has set an ambitious target of achieving 175 GigaWatt (GW) of installed capacity from renewable energy sources by 2022, which includes 100 GW of solar and 60 GW of wind power capacity.

Our take:

The renewable energy segment is opening umpteen opportunities for the private as well as public sector players in the country. The sector is also seeing considerable interest, and therefore, investments from the global players. The need of the hour is to leverage the opportunities. Partnerships and collaboration will be key to reaching the scale, enabling mass-scale adoption and resource optimization.

The Ministry of New and Renewable Energy is working on the modalities of a new policy to promote the use of green hydrogen to support round-the-clock electricity.

The new policy is a part of the government’s thrust towards promoting increased adoption of renewable energy and use of green hydrogen as envisaged in the National Green Hydrogen Mission.

The Union Minister for Power and New and Renewable Energy R. K. Singh chaired the meeting regarding using green hydrogen with solar and wind energy.

Mr Singh has asked the officials to draft scheme guidelines for the green hydrogen and power sector, emphasizing the need for round-the-clock renewable energy to reduce costs and make it affordable.

Officials discussed green hydrogen storage options for round-the-clock and peak power demand. Another area of focus was government support mechanisms like a contract for difference methodology (CDM), based on market price differences and agreed strike prices.

The Budget 2024 is an interim budget.

Though being populist, Nirmala Sitharaman, Union Finance Minister, carefully and successfully has traded on the inclusive lines or, in simple words, kept it women (rural) centric.

The re-definition of GDP to Governance, Development and Performance, while being a welcome move, must be taken with a pinch of salt, though.

Ms Sitharaman charts a clear picture for ‘Vikasit Bharat by 2047’.

The key highlights of the renewed focus are the ‘garib (poor)’, ‘women’, ‘yuva (the youth)’ and ‘kisan (farmer)’.

Starting with the point of inclusive development and growth, the FM highlights increased focus on the Northeastern states of India to promote geographic inclusivity and diversity.

She cements the government strategy with updates on various schemes like Housing for All, Electricity for All, Har Ghar jal, Cooking gas, and Banking services for All.

Empowering people and making social justice a necessary and effective governance model has been another key point in today’s budget speech. Ms Sitharaman underscores the continued efforts of the government toward access to equal opportunities, popular welfare and an outcomes-based focus.

I appreciate the focus on diversity and inclusion that dominated the budget speech in many forms. I am reading it as a positive step for sustainable (sustainability) growth.

“Female enrolment in STEM (science, technology, engineering, and mathematics) courses have seen a 43 percent spike, one of the highest in the world,” she states.

No doubt this will reflect in women participation in the workforce. Especially at a time when Indian companies are seriously implementing DEI in the workforce. While the global peers are much ahead, this shows that India is fast catching up.

Most notable were her mentions about the triple talaq, reservation of 1/3 seats for women in Parliament and state Assemblies, and allotting about 70 percent houses under PM Awas Yojana to women as owners or co-owners.

Climate action:

In a welcome move, the budget speech acknowledges the importance of climate action initiatives. Fresh bilateral packets with foreign partners are a positive move, considering the funding constraints in the segment. Reiterating the government’s target to achieve net-zero by 2070, the FM details the supporting initiates.

For one, India will set up three major economic railway corridors for energy, mineral and energy to reduce congestion and logistics costs.

Green energy and transport:

The FM has outlined a clear charter for green energy. The wind power segment which was sidelined for a couple of years, is back in focus with offshore wind power.

Some of the key announcements are:

Viability Gap Funding (VGF) to harness offshore wind potential for 1 GW.
Roof-top-Solar installations on 1 crore households providing upto 300 units free units on a monthly basis.
Coal gasification or liquefaction to the tune of 100 metric tonnes by 2030.
Phased mandatory blending of compressed biogas, uncompressed natural gas
Financial assistance for EV manufacturing and charging infrastructure
E-buses for public transport

Eco-friendly

The FM has earned applause with a major announcement in the form of the launch of a bio-manufacturing and bio-foundry. She states that these units will drive eco-friendly alternatives like bio-polymers, bio-plastics, bio-pharma and bio-agri inputs.

This, according to the Finance minister, will bring in a landscape change from consumptive manufacturing to regenerative manufacturing.

“Blue economy” also finds a mention along with the green initiatives. Ms Sitharaman states that under Blue Economy 2.0, efforts will be made to restore coastal areas with a focus on aqua and marine culture.

Port connectivity in island cities to boost tourism and the local economy is also a welcome announcement.

Our take:

Though Ms Sitharman focuses on women and climate action, there were no surprises in the budget. Green hydrogen, carbon credit/ trading, a clear target of energy transition/ EV adoption, skilling for green jobs and financing challenges are missing from the budget speech.

Considering this is an interim budget, I am hoping that these issues will be addressed with detailed outlays and policy updates in July.

Mukesh Ambani—the Chairman and Managing Director, Reliance Industries Limited (RIL) outlined plans to solve the energy trilemma.

The energy trilemma encompasses three elements: affordable energy; energy sustainability and; energy security.

Speaking to investors at the company’s 46th AGM, Mr Ambani reiterated the company’s objective to have an installed renewable energy (RE) capacity of 100 gigawatts (GW) by 2030 and be net carbon zero by 2035.

It must be noted that the company has committed to double its investment for green energy to ₹1.5 trillion to align itself with global sustainable practices and expand its renewable energy portfolio.

“Reliance’s new energy and new materials business squarely addresses this trilemma. Green energy is becoming affordable because its costs are already much less than those of non-renewables, and they will come down further. Green energy is sustainable because the sun and wind are never going to disappear. Green energy is secure because India will no longer be dependent on large-scale imports for its energy needs,” Mr Ambani said at the AGM.

We list below some new announcements and initiatives:
Manufacturing:
RIL simultaneously set up a fully-integrated, automated, giga-scale electrolyser manufacturing facility for batteries at the Dhirubhai Ambani Green Energy Giga Complex in Jamnagar, by 2026.

The facility will produce battery chemicals, cells, packs and containerised energy storage systems, and will also include a battery recycling facility.

Batteries:
RIL will start manufacturing lithium iron phosphate battery or LFP battery which has been proven at scale for its safety, stability, and life. The company targets to produce LFP based solutions at world beating lifecycle costs.

The organization is focused on fast-track commercialisation its sodium ion battery technology. “We will build on our technology leadership position by industrialising sodium ion cell production at megawatt level by 2025, and rapidly scale up to giga scale thereafter,” Mr Ambani said at AGM.

Green Energy and renewables:
With the manufacturing set-up in place, RIL will leverage its EPC capabilities to accelerate and enable installation of at least 100 GW of renewable energy generation by 2030.

Commenting on RIL’s focus on green energy, Mr Ambani said, “Our first priority is to deliver a fully-integrated, end-to-end Solar PV manufacturing ecosystem. This will be one of the largest, most technologically advanced, flexible, and most cost-competitive Solar giga factory globally, and will be converting sand into Solar PV modules.

The solar giga factory will include manufacturing of PV modules, cells, wafers and ingots, polysilicon, and glass at a single location in Jamnagar. Plans are afoot to bring the factory on-stream in a phased manner by the end 2025.

On the wind energy front, the company has mega plans to upscale the infrastructure to generate gigawatt-scale, cost-effective wind power.

“One of the significant cost drivers in the manufacturing of wind blades is carbon fibre. Our foray into manufacturing carbon fibre at large scale provides us with a unique advantage to further integrate and reduce cost of wind turbines. In addition, we will be partnering with the world’s leading technology players in wind equipment manufacturing to deliver most cost-efficient solutions,” Mr Ambani said.

Alternate fuel:
Mr Ambani emphasized the importance of clean and sustainable energy, and highlighted the criticality to transition to clean fuel.

On this he said, “… This year, we commissioned one of the most complex and cost-efficient deep-water projects of this scale – the MJ Field, in KG-D6 Block. This includes a state-of-the-art FPSO which is among the largest and the most complex in the world with a gas production capacity of 14 MMSCMD. We are well on our way to enhance production to 30 MMSCMD, which will be 30% of India’s gas production and 15% of its current gas demand.”

Indian Railways, one of the largest railway networks in the world is installing material recovery facilities at more than 250 stations for waste management.

“In line with Indian Railways policy, we target to reduce water consumption by 20% by 2023 and have set up MRF (material recovery facilities) for waste management in more than 250 stations,” said Mr Anil Kumar Lahoti, Chairman & CEO, Railway Board, Ministry of Railways while speaking at the 7th International Conference Rail Tech 2023 organised by ASSOCHAM.

Beyond climate action, Indian Railway has also taken significant steps in other environmental challenges such as water and waste management, he said.

Indian Railways will continue to modernize by using advanced technologies, aligning with “Viksit Bharat” goals, in collaboration with stakeholders like ASSOCHAM.

IR’s thrust on renewables:

Has installed 204.82 MW of renewable energy
Has plans to install 200 MW of wind plants and 1000 MW of solar power plants
Has commissioned 200 MW of solar and 103 MW of wind power till April 2023
Has tied up with various sources for 1.7 GW of renewable capacity
Has plans to partner with industry to design, innovate and make available a secure and sustainable energy supply at a reasonable cost

AM Green Energy, a joint venture between ArcelorMittal and ArcelorMittal Nippon Steel India, has placed 166 MW wind turbine order with Siemens Gamesa in India.

The order is a part of the company’s ambitious plans to expand its renewable energy footprint in the country. Clean energy generated by the farm will be used to power one of ArcelorMittal’s steel plants and support the industry’s decarbonisation efforts in the country.

The deal

As part of the deal, Siemens Gamesa will supply 46 units of its SG 3.6-145 turbine for a wind power project in Andhra Pradesh. Once commissioned, the project will generate power to meet 20% of the electricity demand at the Hazira steel plant and offset 1.5 million tonnes of carbon dioxide emissions every year.

The RE thrust:

The wind energy project will be part of a larger wind-solar hybrid project with a total capacity of 989 MW. ArcelorMittal has been looking to expand its renewable energy footprint and has also announced plans to use pumped hydro storage increase the amount of renewable energy it can use for operations.

Siemens Gamesa will manufacture the wind turbines at its production facilities in India, and plans to deliver them in the second quarter of 2023.

India aims to achieve 500 GW of renewable energy capacity

India aims to reduce 1 BT of carbon by 2030 and achieve net-zero by 2070

As a medium-term target, India has set to add 500 GW of renewable energy to its energy basket by 2030. This will include 280 GW of solar energy, 140 GW of wind energy, and 10 GW of biomass energy.Carbon credits are tradeable permits that allow organizations or individuals to offset their carbon emissions.

For example, a company that emits 100 tons of CO2 per year can buy 100 carbon credits to offset its emissions. And carbon markets are picking up pace in India. The addition of 500 GW of RE would generate significant carbon credits, which could be traded internationally.

Challenges

One of the key challenges to the Indian carbon market is a lack of demand for carbon credits. In order to address the issue, the government has mandated that companies purchase carbon credits to offset a portion of their emissions.

Highlights

India has implemented several carbon credits policies to reduce greenhouse gas emissions and promote sustainable development. The government implemented the REC mechanism in 2010. Under which the renewable energy generators are entitled to issue certificates.
These certificates can be sold to entities that need to meet their renewable purchase obligations.
As of 2021, there are over 100 registered projects in India eligible for carbon credits, potentially reducing 155 million tons of CO2. These include renewable energy, energy efficiency, and waste management projects.
The country has set a target to reduce its emissions intensity by 33-35% by 2030.
The two energy exchanges India Energy Exchange (IEX) and the Power Exchange India Limited (PXIL) enables carbon credits trading.
In addition, these platforms also allow investors to participate in the market without directly investing.
According to a World Bank report, the Indian carbon market could be worth $6 billion by 2025.

Path Ahead

The Indian carbon credit market is growing steadily, with an increasing number of registered projects and a potential reduction in emissions. However, the market still faces challenges related to the lack of demand for carbon credits, which the Indian government is addressing through various initiatives

An interesting news item on renewable energy caught my attention today morning. Wind energy contributed 64.54 billion units in the last three quarters from April-January FY2022-23 to India’s energy basket. It is not surprising that Gujarat and Tamil Nadu lead the pack with 17,062 million units and 15,703 million units respectively. The data was released by the Ministry of New and Renewable Energy.

Considering what the wind sector has gone through in the past couple of years, the growth in the wind energy segment is commendable. Overall, only 41% of projects awarded by SECI during 2018-21 were commissioned till December 2022. 23% were cancelled and the balance were delayed due to land acquisition, and evacuation and supply-side constraints.

I remember my stint with a leading wind energy association where we constantly spoke about the need for capacity addition of 3-6 GW per year and moving beyond 10 GW/year before 2020. Those days our efforts did not bear fruits. It doesn’t end here. Credit Rating agency Crisil, in a press release titled: “Wind energy sector set to surge 4-5x on policy tailwinds” reiterated that India added wind energy of 1.6 GW per annum average. Comparatively, the solar energy sector averaged 8.3 GW per annum in the last five fiscals from 2017 to 2022.

But now the climate rather the wind has changed the segment. This time, for the good. The recent development is an upbeat development in the wind energy market segment.

As per CRISIL, moves by the Ministry of New and Renewable Energy (MNRE) can crank up India’s annual wind capacity implementation to 6-8 gigawatt (GW) per annum starting fiscal 2026, significantly more than the 1.6 GW annual rate clocked in the past five years.

New Policy

New policy measures by the MNRE are adding the thrust. One, MNRE has set a goal to award 8 GW of wind tenders per annum. This is significant because wind tendering has been low at just 3.3 GW per annum in the past five fiscals. Secondly, the ministry has replaced the reverse auction process with a single-stage, two-envelope closed bidding. This should curb irrational bidding. We expect tariffs to rise 20-30% over the recent Rs 2.89-2.94 per unit 4 (to provide more than 10% internal rate of return), on account of changes in the bidding process, resource variability at newer sites, etc, CRISIL said in a press release.

It noted that MNRE has mandated that all discovered renewable tariffs for each state will be pooled and offered to discoms at an average pooled tariff by an intermediary such as SECI. That would lower the risk for wind power project developers because SECI fares significantly better than state discoms in terms of payment of dues.

Strict disciplinary actions such as revoking bank guarantees if the project is not delayed by a year or debarment for 5 years if the project is delayed by 18 months will ensure timely completion, CRISIL stated.

“Basis our discussions with developers, considering 8 GW of bidding in fiscal 2024 and 20-24 months to the commission, around 6-8 GW capacity can be installed every year starting FY2026. This factors in policy push by the government. The annual installations could be on the lower side than the tender volume if the historical reasons for the delay that may be beyond the control of developers, persist,” said Ankit Hakhu, Director, CRISIL Ratings.

Recalling here PM’s recent statement— India’s green energy potential is no less than a goldmine. Renewable energy contributes more than 40% to the country’s energy basket. And the set target is to achieve 500 GW of renewable energy by 2030.

ACHIEVABLE – no doubt as the ministry is taking proactive steps and the industry is gearing to tap the potential of repowering and offshore wind energy.

With unionbudget FY2022-23 barely 40 days away, industry bodies are drafting wishlists for Union Finance Minister Nirmalasitharaman’s consideration.

Industry body #assocham has suggested six policies, which if included and announced in the Union Budget, will improve the scope of the renewablesindustry in India.

Sumant Sinha, President, Assocham, and Chairman, ReNew Power, has urged Finance Minister Nirmala Sitharaman to reduce interest rates. He has focused on the following policies:

• Reduce the interest rate from the current 8-10 percent
• Increase allocation for PLI for #solarmodule manufacturing from Rs 19,500
• Announce a green hydrogen policy
• Include subsidies to boost hydrogen manufacturing to compete globally
• Create a playscheme to help electrolyzers
• Develop a #pli program to set up wind energy capacity

In an interview with PTI, Mr Singh said, “Why don’t we also have a PLI scheme for the wind? It will lower the cost of wind. I have suggested it to the government. This would help lower the cost of wind capacity which currently costs around Rs 6-7 crore per megawatt.”

Renewable Energy Turbocharged

Tag: Wind Energy

News

NTPC Announces Two Projects
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Project details:

NTPC’s net-zero push:

Backdrop:

News

Girish Tanti Appointed GWEC India Chair
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