Surge in Renewable Energy Tenders in India: A Robust Start to FY 2024-25

As fiscal year 2024-25 unfolds, India’s renewable energy (RE) sector is witnessing unprecedented activity. Over 38 GW of tenders have already been issued across various segments, including solar, wind, solar-wind hybrid, and solar-plus-storage. This impressive start underscores the nation’s commitment to a sustainable energy future.

Quarterly Breakdown: A Closer Look

The first quarter of FY 2024-25 has seen a remarkable 27 GW of RE tenders. This breaks down to 5.6 GW in April, 11.37 GW in May, and 10.84 GW in June. These tenders, spearheaded by various central and state agencies, are part of the ambitious annual target of 50 GW and 500 GW non-fossil by 2030.

July alone saw an additional 10.8 GW of tenders, issued by prominent agencies such as NTPC, SECI, SJVN, NHPC, GUVNL, and MSEDCL. This sustained momentum highlights the sector’s robust growth trajectory.

Month-wise tender in RE Segment

The specifics of the technology-wise tenders issued in the July month reveal a diversified approach: (capacity in MW, based on market info and internal research)

Technology wise tender in July 2024

Technology-wise Tender in July 2024 (Source: Market & RESI Research team)

By end of June 2024, the cumulative achievements in the renewable energy sector included 46.66 GW of wind power, 85.47 GW of solar power, 5.01 GW of small hydro power, 9.43 GW of biomass cogeneration, and 0.25 GW of waste to power. These contributions have pushed the total installed renewable energy capacity to 148.08 GW, reflecting a steadfast advancement towards India’s renewable energy goals.

As of March 31, 2024, the total solar capacity in India stands at an impressive 221.95 GW. This includes 81.81 GW of commissioned projects, 95.69 GW under implementation, and 44.44 GW for which tenders have been issued but Letters of Award (LoA) are still pending. For hybrid and round-the-clock (RTC) projects, the capacity for tenders issued but awaiting LoA is 33.85 GW, bringing the combined total for solar and hybrid projects to a staggering 255.80 GW. The previous fiscal year saw a significant solar capacity addition of 15.033 GW. This includes 10.612 GW from ground-mounted projects, 2.992 GW from rooftop installations, 0.864 GW from the solar component of hybrid projects, and 0.565 GW from off-grid solar. Notably, March 2024 alone contributed 6.238 GW, with substantial additions across ground-mounted, rooftop, and off-grid segments.

The first quarter of FY 2024-25 has set a robust pace for the renewable energy sector, with over 27 GW tendered and a clear trajectory towards achieving the 50 GW annual target. The diversified and ambitious tendering strategy not only promises a significant boost to India’s RE capacity but also reinforces the nation’s commitment to a sustainable and green energy future.

Key Developments in India’s Renewable Energy Sector in July 2024

India's renewable energy landscape continues to evolve rapidly, with significant milestones achieved in July 2024. Notable tenders were concluded across various segments, including solar, wind, solar-wind hybrid, and solar-plus-storage. This article delves into the successful bids and the emerging trends that are shaping the future of the nation's power market.

In a competitive reverse auction for the SECI’s FDRE (Tr IV) tender for 1260 MW, several developers emerged victorious: JSW Neo: 230 MW @ ₹4.98/kWh, Hero Solar: 100 MW @ ₹4.98/kWh, Vena Energy: 100 MW @ ₹4.98/kWh, Hexa Climate: 100 MW @ ₹4.99/kWh, and Serentica Renewable: 100 MW @ ₹4.99/kWh

This tender, originally issued in September 2023, highlights the strong interest and competitive pricing in the renewable energy sector.

SECI Solar Wind Hybrid Tender (Tr XVI) – Issued in December 2023: The SECI Solar Wind Hybrid tender (Tr XVI) for 1350 MW saw substantial participation, with the following allocations: JSW Neo: 350 MW @ ₹3.61/kWh (GU), 350 MW @ ₹3.61/kWh (GU - Greenshoe), 175 MW @ ₹3.60/kWh (KA - Greenshoe), Powerica: 50 MW @ ₹3.70/kWh (GU), Torrent Power: 100 MW @ ₹3.60/kWh (KA), and JSW Neo: 150 MW @ ₹3.68/kWh (KA).

These results underscore the increasing viability and competitiveness of hybrid renewable energy projects.

MSEDCL concluded the reverse auction for its solar-wind hybrid tender issued in March 2024 for 500 MW, with the following winners: JSW Energy: 200 MW @ ₹3.60/kWh, Juniper Green: 75 MW @ ₹3.60/kWh, Bright Night Peak: 76 MW @ ₹3.62/kWh, and Avaada Energy: 75 MW @ ₹3.69/kWh.

In the rooftop segment, UPNEDA finalized its bidders at tariffs ranging from ₹4.85 to ₹4.90/kWh: Lords Mark Industries: 50 MW, NRGY: 6.37 MW, Kosuke: 10 MW, HFM: 10 MW, GP Edible: 10 MW, OMC: 10 MW, and KLK: 5 MW.

SECI Solar Plus Storage Tender (ISTS XV) – 1200 MW Solar and 600 MW/1200 MWh Storage: One of the most innovative tenders, SECI’s Solar Plus Storage under ISTS Tr XV, achieved remarkable results for 1200 MW solar and 600 MW/1200 MWh storage facilities: Pace Digitek: 100 MW @ ₹3.41/kWh, Hero Solar: 250 MW @ ₹3.42/kWh, ACEM: 350 MW @ ₹3.42/kWh, JSW Neo: 500 MW @ ₹3.42/kWh.

This tender highlights the growing importance of storage solutions in meeting demand during peak hours.

Emerging Trends and Future Prospects

Recent studies indicate that solar plus storage will play a critical role in addressing the power demand shortage projected for 2027, estimated at around 20-30 GW during evening and night peak hours. The requirements of 60-70 MW/250-300 MWh storage facilities estimated by 2030 and 500MW/2500 GWh by 2050 for Indian power market based on the growth in the demand. This will also help in flexibility and diurnal balance of the system.

The declining cost of storage and competitive tariffs are making this technology increasingly feasible. Tariffs have dropped significantly, from ₹10.8 Lakh/MW/Month in SECI’s earlier tender to ₹3.72 Lakh/MW/Month in GUVNL’s tender, won by GENSOL. Previous GUVNL tenders saw winners like Indigrid and GENSOL with costs of ₹4.48 Lakh/MW/Month.

July 2024 has been a pivotal month for India’s renewable energy sector, with substantial progress across various tenders. The competitive tariffs and innovative solutions like solar plus storage indicate a bright future for the nation’s renewable energy landscape. As storage costs continue to fall, these technologies will be crucial in bridging the gap between supply and demand, ensuring a sustainable and resilient energy system.

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