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India to auction 40 Gw of renewable energy every year till 2028: Official

The government's power projection indicates that India will have to bid out 140 Gw of wind energy to meet demand by 2030

Press Trust of India  |  New Delhi 

solar power

will auction 40 Gw of 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 said today.

"We have 30 Gw 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 for next 10 years till 2028 to meet the power demand of 862 Gw by 2030," New and told reporters at the Global Wind Day celebration by the (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 will have to bid out 140 Gw of to meet demand by 2030, he said, adding the country would complete bidding of 60 Gw of 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. has already achieved 70 Gw of capacity including 22 Gw of solar and 34 Gw of wind."

India would ultimately have around 500 Gw of by 2030, including 350 Gw of solar and 140 Gw of

The was of the view this capacity addition would give enough opportunity to domestic and project developers.

The and other government agencies have worked out a demand projection of 862 Gw by 2030 factoring in 6 per cent growth in 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 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, -- which witnessed lowest solar tariff of Rs 2.44 per unit last year in May -- would be commissioned in August this year.

and IWTMA said India would double its to 25 Gw per annum by 2020.

He exuded confidence that India would overachieve 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.

First Published: Sat, June 30 2018. 16:48 IST
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