To achieve the ambitious target of 500 gigawatt (GW) by 2030, the Union Power Ministry has decided to bid out a minimum of 50 GW of renewable energy capacity annually for the next five years from 2023-24 till 2027-28. The bids will also include setting up of wind power capacity of at least 10 GW per annum.

As on February 28, 2023, India has a total renewable energy capacity of 168.96 GW with about 82 GW at various stages of implementation and about 41 GW under tendering stage. This includes 64.38 GW solar, 51.79 GW hydro, 42.02 GW wind and 10.77 GW biomass power projects. The government has also finalised a quarterly plan for the bids for FY 2023-24. This comprises at least 15 GW of renewable energy capacity in each of the first and second quarters of the financial year (April-June 2023 and July-September 2023, respectively), and at least 10 GW in each of the third and fourth quarters of the financial year (October-December 2023 and January-March 2024, respectively). This capacity addition is over and above the RE (revised estimates) capacities that would come up under schemes like Rooftop solar and PM-KUSUM of the Ministry, under which, bids are issued directly by various States and capacities that may come up under Open Access Rules.

Despite the big push to promote renewable power, India could add only 14.21 GW of renewables in January-October 2022 and 11.9 GW during the same period of the previous year. India will have to add more than 40 MW every year from now onwards to achieve the target of 500 GW by 2030. Many auctions in the past, especially in wind, had failed to get bidders and were forced to be cancelled due to various reasons like reverse auctions and equipment price issues.

Further, public sector hydro specialist SJVN Ltd has also been selected as an implementing agency by the Government. Presently, Solar Energy Corporation of India (SECI), NTPC and NHPC are the Renewable Energy Implementing Agencies (REIAs) for calling such bids.

"Considering the fact that RE projects take around 18-24 months for commissioning, the bid plan will add 250 GW of renewable energy and ensure 500 GW of installed capacity by 2030. The Ministry of Power is already working on upgrading and adding the transmission system capacity for evacuating 500 GW of electricity from non-fossil fuel", says a Ministry of Power statement. "The structured bidding trajectory will provide sufficient time to the RE developers to plan their finances, develop their business plans and manage the supply chain more efficiently," says R. K. Singh, Union Minister for Power & NRE.

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