India’s commitment to a decarbonized economy has been embraced by market stakeholders, with two consecutive years of record in renewable energy bid capacity.
This even exceeds the central government’s goals, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics.
The report concludes that India has called for bids for the addition of renewable energy capacity to public services on a record total of 73 gigawatts (GW), surpassing the 58 GW from 2023. This figure significantly exceeds the annual target of 50 GW set by the Ministry of New and Renewable Energy.
Furthermore, almost half of the 2024 bids were allocated to renewable technologies such as hybrid wind-solar and battery energy storage, in response to energy operators’ demand to enhance energy quality.
## Challenges in renewable energy bids
The report also points out that the increased bidding activity has posed new challenges that could dampen investors’ enthusiasm and delay or cancel large projects.
Additionally, the report highlights delays in signing Power Sale Agreements (PSA) with energy buyers, which have already exceeded 40 GW.
Solar Energy Corporation of India’s (SECI) bids represent 30% (12 GW) of the large volume of unsigned power sale agreements.
Bid cancellations are also on the rise. From 2020 to 2024, 38.3 GW of utility-scale renewable energy capacity were canceled, representing around 19% of the total capacity issued during that period.
Cancellations were due to issues with bid design, location or technical complexity, insufficient subscription, and delays in PSA signings.
The report recommends that authorities equally focus on all aspects of the bidding process, from publishing selection requests to awarding and signing PSAs, to maintain momentum in adding renewable energy capacity through such bids.
## India must double renewable energy capacity to meet 2030 goals
India must double its annual additions of solar and wind capacity over the next five years to meet its clean energy goals for 2030, despite record additions in 2024, said Global Energy Monitor (GEM) in a report on Wednesday.
India added nearly 28 gigawatts (GW) of solar and wind capacity in 2024, with solar energy additions accounting for 70% of the total additions, according to the country’s Ministry of Renewable Energy.
The country has set a goal of achieving at least 500 GW of non-fossil energy capacity by 2030, compared to its current 165 GW. However, India is still far from its previously set goal of adding 175 GW by 2022.
Have you already checked out our YouTube channel? Subscribe now!
