India to auction 40 GW renewable energy projects every year till 2028

India will auction 40 GW of renewable energy projects comprising 30 GW solar and 10 GW wind every year for the next 10 years till 2028, indicating huge potential for domestic manufacturers and developers, a senior official said on Saturday.

"We have 30 GW solar energy bidding plan for 2018-19 and 2019-20. This 30 GW auction per annum would continue till 2028. Similarly, we have to auction 10 GW of wind energy for next 10 years till 2028 to meet the power demand of 862 GW by 2030," New and Renewable Energy Secretary Anand Kumar told reporters at the Global Wind Day celebration by the Indian Wind Turbine Manufacturers Association (IWTMA).

Elaborating further, he said, "We have to do 350 GW in solar (to meet demand by 2030), of which 100 GW is planned till 2022. So we have to bid out at least 30 GW each year from 2020 onwards to achieve additional 250 GW."

The government's power projection indicates that India will have to bid out 140 GW of wind energy to meet demand by 2030, he said, adding the country would complete bidding of 60 GW of wind energy by 2o2o.

Kumar further said, "Therefore, we have to do 10 GW every year till 2028 to meet the overall power demand of 862 GW by 2030. India has already achieved 70 GW of renewable energy capacity including 22 GW of solar and 34 GW of wind." India would ultimately have around 500 GW of renewable energy capacity by 2030, including 350 GW of solar and 140 GW of wind energy.

The secretary was of the view this capacity addition would give enough opportunity to domestic renewable energy equipment manufacturers and project developers.

The Central Electricity Authority and other government agencies have worked out a demand projection of 862 GW by 2030 factoring in 6 per cent growth in electricity demand per annum.

About the best bidding mechanism, he said, "We have engaged IIM Lucknow for preparing a detailed report on merits of close envelop auction and reverse bidding method. They are expected to give their report in July. The government will take call only after that." Kumar explained that some players had expressed concerns that the bidders with deep pockets can hurt small developers by outbidding them in auctions for renewable projects.

However, he also admitted that tariff-based reverse auction helps in achieving the best pricing.

Under the close envelop auctions, the bid price cannot be changed whereas in reverse auction, the bid price is known and bidders can outbid each others.

The secretary also said the ministry would call a meeting of bankers and financial institutions in July to allay fears related to projects turning into NPAs or bad loans as there is no such case at present.

He said the 500 MW capacity in Bhadla Phase-III Solar Park, Rajasthan -- which witnessed lowest solar tariff of Rs 2.44 per unit last year in May -- would be commissioned in August this year.

Suzlon Group Chairman Tulsi Tanti and President IWTMA said India would double its wind energy manufacturing capacity to 25 GW per annum by 2020.

He exuded confidence that India would overachieve wind energy capacity target of 60 GW by 2022 and would rather have 80 GW by that time.

He said that keeping in view scenario beyond 2030, offshore wind and solar-wind offshore would be the future in respect of issues and cost related to land acquisition.