What Are the Key Factors Driving India's Rapid Growth in the Renewable Energy Sector?: Update of RE development in Q3 2024
- RE Society of India RESI
- Dec 15, 2024
- 5 min read
End of Q3 2024 has marked a pivotal moment in India's renewable energy journey, with an impressive array of tenders, auctions, and investments driving the sector forward. The issuance of new tenders, including significant projects in solar, wind, and energy storage, reflects the country’s unwavering commitment to its clean energy future. Reverse auctions have not only brought competitive pricing but also demonstrated the growing involvement of major developers across the country, enhancing the sector’s potential for capacity growth.
Furthermore, strategic partnerships and substantial investments in renewable energy projects underscore the increasing global confidence in India's green energy market. With state-driven initiatives, corporate collaborations, and funding from international players, India's renewable energy landscape is rapidly evolving. This momentum will continue to play a critical role in achieving the nation's ambitious climate and energy targets, reducing its carbon footprint, and contributing to a more sustainable and resilient energy system.
As India continues to attract both domestic and international investments, the coming years are set to bring even greater strides in the renewable energy sector, positioning the country as a key global player in the transition to a low-carbon economy.
Major Tender Highlights: State-wise Focus on Renewable Energy Projects
India's renewable energy sector continues to expand with numerous significant tenders issued across various states, driving the transition towards clean energy. Here’s a state-wise breakdown of some of the major recent tenders:
Telangana: TGREDCO’s 1 GW Rooftop Solar Tender: A landmark 1 GW tender has been issued by the Telangana State Renewable Energy Development Corporation (TGREDCO) for rooftop solar installations. The projects must be commissioned within six months of signing Power Purchase Agreements (PPAs), with the submission deadline for bids set for December 10, 2024.
Rajasthan: RUVNL’s Standalone Battery Energy Storage Systems (BESS) Tender: Rajasthan Urja Vikas Nigam Limited (RUVNL) has opened a bid for 500 MW/1000 MWh standalone BESS, with an optional additional 500 MW/1000 MWh. This project, supported by viability gap funding, has a commissioning timeline of 18 months, with bid submissions closing on January 2, 2025. The tender are-
RRECL: A 282 MW rooftop solar project.
SJVN: A 100 MW wind energy project.
AVVNL: A 269 MW solar project under KUSUM Component A.
Maharashtra:
Hindustan Petroleum Corporation (HPC): A 105 MW solar project.
Gujarat
SJVN: A 100 MW wind energy project.
Odisha
OPGC: A 50 MW solar project (EPC).
CMPDI: A 10 MW solar project.
Madhya Pradesh
Coal India: A 40 MW solar project (EPC).
Haryana
DHBVN: A 26.75 MW solar project under KUSUM Component A.
These tenders reflect a wide variety of projects—ranging from rooftop solar and wind energy to standalone Battery Energy Storage Systems (BESS)—demonstrating India's growing emphasis on renewable energy. With each project offering significant opportunities for developers, these tenders are pivotal in advancing the country's sustainable energy goals.
Winners of Recent Reverse Auctions in Renewable Energy Sector – November 2024
Oct/Nov 2024 saw a series of competitive reverse auctions in the renewable energy sector, with several prominent developers securing significant capacities. Below are the details of the concluded auctions, highlighting the winners and their bids:
NTPC - ISTS Wind Solar Hybrid (1170 MW): Highest Bid: Rs. 3.29/kWh, Lowest Bid: Rs. 3.28/kWh
Winners: Green Prairie - 200 MW (INR 3.28/kWh), Sembcorp - 300 MW (INR 3.29/kWh), Adyant - 70 MW (INR 3.28/kWh), Adani - 600 MW (INR 3.29/kWh)
NHPC, Solar - FDRE (1948 MW): Highest Bid: Rs. 4.38/kWh, Lowest Bid: Rs. 4.37/kWh
Winners: Avaada - 1000 MW (INR 4.38/kWh), Essar - 335 MW (INR 4.37/kWh), Juniper - 195 MW (INR 4.37/kWh), Serentica - 180 MW (INR 4.37/kWh), Hexa Group - 238 MW (INR 4.38/kWh)
GUVNL, Ph-XXV (500 MW): Highest Bid: Rs. 2.56/kWh, Lowest Bid: Rs. 2.55/kWh
Winners: SBB Mouldings - 10 MW (INR 2.55/kWh), Kintech - 50 MW (INR 2.55/kWh), Enertech - 40 MW (INR 2.55/kWh), Prozeal - 100 MW (INR 2.55/kWh), Ausom - 50 MW (INR 2.55/kWh), Drashta Green - 10 MW (INR 2.55/kWh), SAEL - 240 MW (INR 2.56/kWh)
NTPC - Solar (976 MW): Highest Bid: Rs. 2.51/kWh, Lowest Bid: Rs. 2.50/kWh
Winners: Rays Power - 100 MW (INR 2.5/kWh), SAEL - 300 MW (INR 2.5/kWh), Refex Green - 100 MW (INR 2.5/kWh), Renew - 300 MW (INR 2.51/kWh), Hybren - 176 MW (INR 2.51/kWh)
NTPC, FDRE (1200 MW): Highest Bid: Rs. 4.70/kWh, Lowest Bid: Rs. 4.69/kWh
Winners: Hexa-300 MW (INR 4.69/kWh), ACME-400 MW (INR 4.70/kWh), Avaada-60 MW (INR 4.70/kWh)
SJVN, Solar-Wind Hybrid (1200 MW): Highest Bid: Rs. 3.19/kWh, Lowest Bid: Rs. 3.19/kWh
Winners: Datta Infra-70 MW (INR 3.19/kWh), Gentari Renewable-400 MW (INR 3.19/kWh), Juniper Green-300 MW (INR 3.19/kWh), EG Green-300 MW (INR 3.19/kWh), SunSure-130 MW (INR 3.19/kWh)
These actions reflect competitive pricing in the renewable energy sector, with significant capacity additions underway from leading developers.
In Nov 2024, total solar capacity commissioned by various states is 2 GW.
Noteworthy Announcements in November 2024
Several significant developments took place in November, furthering India's green energy goals:
Gensol Engineering secured an INR 780 crore EPC contract for a 150 MWac solar power plant in Maharashtra, slated for completion in 15 months.
Tata Power and Noida International Airport entered into a partnership to supply 23.8 MW of green power, supporting the airport’s sustainability efforts.
Tembo Global was awarded an INR 595 crore contract for a 124 MWac solar project in Maharashtra under PM-KUSUM.
Equinix partnered with CleanMax to develop a 33 MW hybrid solar-wind project in Maharashtra, marking the company’s first PPA in India.
Green Energy Investments and Deals
In November, India witnessed robust investments in the renewable energy sector, totaling around $925 million. Notable deals included:
NTPC Green Energy raised $467.6 million ahead of its IPO, with significant participation from foreign institutions like Capital World and Goldman Sachs.
AMPIN Energy Transition and Copenhagen Infrastructure Partners (CIP) announced a $1.5 billion partnership to develop 2 GW of renewable energy projects across India, including solar, wind, hybrid, and storage solutions.
These investments reflect a growing global interest in India's clean energy market, positioning the country as a major player in the global transition to sustainable energy.
Conclusion
November 2024 saw significant advancements in India's renewable energy sector, with 3 GW of new capacity tendered and several reverse auctions concluded at competitive prices. Key projects include Telangana’s 1 GW rooftop solar, Rajasthan's 500 MW standalone BESS, and multiple solar and wind projects across Maharashtra, Gujarat, and Haryana. Auction results, such as NTPC’s ISTS Wind-Solar Hybrid (1170 MW) with bids as low as INR 3.28/kWh, demonstrate strong market participation and price competitiveness.
Noteworthy investments included NTPC Green Energy’s $467.6 million IPO raise and a $1.5 billion partnership between AMPIN Energy and CIP for 2 GW of renewable projects. These developments underline India’s growing renewable energy capacity, attracting both domestic and global investments, positioning the nation to meet its ambitious climate goals and drive sustainable growth in the energy sector.
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