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India plans to more than increase the capacity of auctions to award renewable energy projects as it works towards its 2030 objective of 500GW capacity in clean power generation. A minimum investment of RS 2.44 lakh crore, or $33 billion, is required to achieve this target.
The country intends to triple the capacity of auctions used to award renewable energy projects to 50GW by March 2024, more than double the capacity used in the previous five years. The government has said that fresh investment is needed to fulfil the rising demand for power while also making the present infrastructure fit for the future.
Analysts caution, however, that fresh investment will require land availability and long-term purchasers, and that constraints such as high financing rates imply project tenders must be properly managed before launch.
This strategy is part of India’s worldwide climate commitment to obtain 50% of its overall energy needs from non-fossil sources. India likewise intends to achieve 50% of its electricity needs through renewable energy sources by 2030, with the goal of reaching net zero emissions by 2070.
To achieve this, the nation intends to boost the auction capacity for renewable energy projects to 50GW by March 2024. Analysts advise, however, that issues like land scarcity and high mortgage rates must be carefully considered before initiating project tenders.
As a result, India intends to auction 15 gigatonnes of projects in each of the first two quarters of the fiscal year, which began this month, with around 10 gigatonnes available in both of the following quarters. The auctions will be conducted for the government by state-owned power firms Solar Energy Corp. of India Ltd., NTPC Ltd., NHPC Ltd., and SJVN Ltd.
