{"id":105756,"date":"2025-03-12T13:21:31","date_gmt":"2025-03-12T12:21:31","guid":{"rendered":"https:\/\/www.sonnenseite.com\/?p=105756"},"modified":"2025-03-12T13:21:37","modified_gmt":"2025-03-12T12:21:37","slug":"india-issues-record-73-gigawatts-of-utility-scale-renewable-energy-tenders-in-2024","status":"publish","type":"post","link":"https:\/\/www.sonnenseite.com\/en\/uncategorized\/india-issues-record-73-gigawatts-of-utility-scale-renewable-energy-tenders-in-2024\/","title":{"rendered":"India issues record 73 gigawatts of utility-scale renewable energy tenders in 2024"},"content":{"rendered":"\n

This was the second year in a row that the country exceeded its target of tender issuance, but more post-bidding challenges are now emerging.<\/p>\n\n\n\n

India\u2019s grand vision for a decarbonised economy has been embraced by market stakeholders, with two consecutive years of record renewable energy tendering capacity issuances surpassing even the central government\u2019s ambitious targets, according to a new report<\/a> by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics.<\/p>\n\n\n

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The report finds that India issued tenders inviting utility-scale renewable energy capacity addition totalling a record-high 73 gigawatts (GW), eclipsing 2023\u2019s 58GW. This far exceeds the Ministry of New and Renewable Energy\u2019s annual target of 50GW. Further, nearly half of the tenders in 2024 were for non-vanilla renewable technologies like wind-solar hybrid and battery energy storage in response to demand from energy offtakers for improved power quality. <\/p>\n\n\n\n

\u201cThe evolution of renewable energy tenders demonstrates that market stakeholders are actively working to overcome shortcomings,\u201d says the report\u2019s contributing author, Vibhuti Garg, Director \u2013 South Asia, IEEFA. <\/p>\n\n\n\n

\u201cThe renewable energy market has matured considerably, and all stakeholders, from investors to energy offtakers, have built a strong understanding of the intricacies of renewable energy technologies,\u201d she adds. <\/p>\n\n\n\n

The report also finds that the surge in tendering activity has brought fresh challenges that could temper investor enthusiasm and delay or cancel major projects.<\/p>\n\n\n\n

\u201cTender undersubscription is emerging as a challenge for tendering authorities. Last year, about 8.5GW of utility-scale renewable energy tenders went undersubscribed, five times more than in 2023, owing to complex tender designs, aggressive bidding during reverse auctions and delays in the readiness of the interstate transmission system (ISTS) infrastructure,\u201d says the report\u2019s co-author, Prabhakar Sharma, Senior Consultant, JMK Research. <\/p>\n\n\n\n

Further, the report also highlighted delays in signing power sale agreements (PSA) with energy offtakers, which have now exceeded 40GW. Solar Energy Corporation of India (SECI)-led tenders comprise 30% (12GW) of the large backlog of unsigned PSAs. <\/p>\n\n\n\n

Tender cancellations are also on the rise. From 2020 to 2024, 38.3GW of utility-scale renewable energy capacity was cancelled, accounting for about 19% of the total issued capacity during that period. <\/p>\n\n\n\n

Cancellations were due to tender design issues, location or technical complexity, undersubscription and PSA delays, the report finds. <\/p>\n\n\n\n

\u201cDelays in project implementation pose a significant challenge to India\u2019s renewable energy target for 2030,\u201d says the report\u2019s co-author, Ashita Srivastava, Senior Research Associate, JMK Research. <\/p>\n\n\n\n

\u201cOngoing issues with project realisation could deter investor interest in future renewable energy projects in India, potentially affecting the availability of low-cost financing from large-scale investors,\u201d he adds.  <\/p>\n\n\n\n

The report recommends authorities focus equally on all aspects of the tendering process, from issuance of requests for selection to allotment and signing of PSAs, to keep momentum high on adding renewable energy capacity via such tenders. <\/p>\n\n\n\n

\u201cIn addition to issuing tenders, the government should establish annual targets for both allotments and the execution of PSAs. This will ensure that renewable energy implementing agencies (REIAs) issue bids only after securing the necessary offtake agreements,\u201d says the report\u2019s co-author Deepalika Mehra, Research Associate at JMK Research. <\/p>\n\n\n\n