PFCL Floats Empanelment Tender for Metering Infrastructure Service Providers

Solarium Green Energy Receives BSE Nod for Initial Public Offering

Power Transmission Company Kalpataru Projects Raises ₹10 Billion in QIP

Himachal Regulator Approves Tariff for 900 MW Hybrid Power Projects

Daily News Wrap-Up: HPERC Allows DISCOM To Procure 550 MW Solar Power

MES Invites Bids for Maintenance of 1.7 MW Solar Project

Exploring Solar Open Access Potential in Odisha and Haryana

Karnataka Floats EPC Tender for 1.2 MW Solar Project

Himachal Regulator Allows DISCOM to Procure 550 MW Solar Power from SECI

Agri-Solar Solutions Provider GK Energy Files Papers for ₹5.01 Billion IPO


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2023/04/amazon_polly_53037.mp3?version=1688473427">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>The Ministry of New &amp; Renewable Energy (<a href="https://www.mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) has issued an agency-wise bidding calendar for 50 GW of renewable energy projects for the current financial year (FY 2023-24).</p>
<p>The calendar entails a schedule of 30 GW of renewable capacity for the first two quarters and 20 GW in the last two quarters.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/Solar.png"><img decoding="async" class="aligncenter wp-image-53046 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/Solar.png" alt="Solar" width="100%" height="100%" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/Solar.png 947w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/Solar-300x76.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/Solar-768x195.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/Solar-650x165.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/Solar-624x158.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/Solar-600x152.png 600w" sizes="(max-width: 947px) 100vw, 947px" /></a></p>
<p>SECI and NTPC will issue tenders for 12.5 GW of Solar/Hybrid/Round-the-Clock (RTC) projects and 2.5 MW of wind projects each.</p>
<p>NHPC and SJVN will issue tenders for 7.5 GW of Solar/Hybrid/RTC projects and 2.5 MW of wind projects each.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/wind.png"><img decoding="async" class="aligncenter wp-image-53047" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/wind.png" alt="wind" width="100%" height="100%" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/wind.png 538w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/wind-300x129.png 300w" sizes="(max-width: 538px) 100vw, 538px" /></a></p>
<p>The bids will be floated according to standard bidding guidelines issued by the government and MNRE’s instructions for renewable energy tenders.</p>
<p>MNRE had <a href="https://www.mercomindia.com/mnre-renewable-energy-bidding-trajectory" target="_blank" rel="noopener">stated</a> that it will issue renewable project bids worth 50 GW annually during FY 2024-28, which includes at least 10 GW of wind tenders.</p>
<p>Renewable project developers have regularly <a href="https://www.mercomindia.com/renewables-tender-schedule-key-mitigate-project-risks" target="_blank" rel="noopener">petitioned</a> the government for a predictable bidding trajectory to mitigate project risks, enable more efficient financial planning and supply chain management, and provide better visibility and certainty for upcoming tenders.</p>
<p>They have argued that current haphazard tendering processes by central and state governments make it challenging for them to plan finances and secure component supplies at competitive prices.</p>
<p>India has set ambitious goals for renewable energy to combat climate change and reduce reliance on fossil fuels.</p>
<p>The government has committed to achieving 50% of its installed power capacity from non-fossil fuel-based energy resources by 2030 and reducing the emissions intensity of its GDP by 45% compared to 2005 levels.</p>
<p>Further, MNRE has been working to achieve 500 GW of installed electricity capacity from non-fossil sources by 2030, which includes 280 GW of solar.</p>
<p>As of February 2023, India’s renewable energy installed capacity stands at nearly 169 GW, with 82.6 GW under implementation and 40.89 GW under the tendering process.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you don’t miss any critical updates from the renewable industry.</p>


Government to Bid Out 50 GW of Solar, Wind, and RTC Projects in FY24


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2023/04/amazon_polly_52182.mp3?version=1680779546">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>The Ministry of New &amp; Renewable Energy (<a href="https://www.mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) will issue renewable project bids worth 50 GW annually for the financial years (FY) 2024-28, which includes at least 10 GW of wind tenders.</p>
<p>Industry stakeholders, especially developers, have been demanding a predictable bidding trajectory, which they have argued would help them prepare better for competitive bids. Additionally, it would also help iron out grid connectivity issues and provide more visibility and certainty for upcoming tenders, besides attracting more international capital.</p>
<p>Mercom had earlier written about stakeholders <a href="https://www.mercomindia.com/renewables-tender-schedule-key-mitigate-project-risks" target="_blank" rel="noopener">emphasizing</a> the need for a clear tender trajectory to mitigate project risks for developers and enable more efficient financial planning and supply chain management.</p>
<p>The tender trajectory for FY24 entails a schedule of at least 15 GW of renewable capacity for the first two quarters and at least a minimum of 10 GW in the last two quarters.</p>
<p>The bids may consist of vanilla solar, vanilla wind, solar-wind hybrid, round-the-clock renewable energy power, with or without storage, or any other combination, based on the assessment of the renewable energy market or as per the directions of the government.</p>
<p>The year-wise targeted bid capacity would be allocated among the government&#8217;s renewable energy implementing agencies (REIA). The bids must be floated according to standard bidding guidelines issued by the government and MNRE&#8217;s instructions relating to renewable energy tenders.</p>
<p>REIAs may issue bids in coordination with other implementing agencies to avoid concurrent bids.</p>
<p>India has set ambitious goals for renewable energy to combat climate change and reduce reliance on fossil fuels. The government has committed to achieving 50% of its installed power capacity from non-fossil fuel-based energy resources by 2030 and reducing the emissions intensity of its GDP by 45% compared to 2005 levels.</p>
<p>Further, MNRE has been working to achieve 500 GW of installed electricity capacity from non-fossil sources by 2030.</p>
<p>As of February 2023, India&#8217;s renewable energy installed capacity stands at 168.96 GW, with 82.62 GW under implementation and 40.89 GW under the tendering process.</p>
<p>Currently, the renewables sector has to deal with central and state governments issuing tenders haphazardly, which makes it hard for project developers to effectively plan their finances and secure supplies of components at competitive prices.</p>
<p>Subscribe to Mercom&#8217;s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you don&#8217;t miss any critical updates from the renewable industry.</p>


MNRE Sets Renewable Energy Bidding Trajectory of 50 GW Annually Until 2028


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="http://mercomindia.com/wp-content/uploads/2023/01/amazon_polly_47112.mp3?version=1672921534">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>Stakeholders in India’s renewables sector have called for a pre-determined calendar for tenders so that the resultant certainty can help companies plan their finances and manage supply chain constraints more efficiently.</p>
<p>Businesses generally thrive in a policy and regulatory environment that fosters certainty, but the renewables sector has had to contend with central and state governments and their myriad departments and agencies issuing tenders randomly.</p>
<p>Amit Jain, Managing Director at <a href="https://www.engie.com/en" target="_blank" rel="noopener">ENGIE India</a>, said that as the country targets a capacity addition of 500 GW of renewable capacity by 2030, the availability of a scheduled tender trajectory is essential.</p>
<p>“The government, in order to facilitate further investment from foreign firms, could consider sharing a bidding trajectory that will help the foreign firms to effectively plan and contribute to accomplishing the ambitious renewable target of 500 GW target by 2030. It would be good to have a trajectory for tendering for the next few years. That would also help us plan better and be a part of the whole growth story,” he added.</p>
<p>Tender announcements during the third quarter of 2022 <a href="https://mercomindia.com/solar-tenders-rose-auctions-slid-to-3-75-gw-q3-2022/" target="_blank" rel="noopener">were</a> up 144% year-over-year compared to the same period last year, while the corresponding auctions were down by 58%.</p>
<p><em><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-47116" src="https://mercomindia.com/wp-content/uploads/2023/01/Solar-tenders-trend-graphical-presentation.png" alt="Solar tenders trend graphical presentation" width="777" height="506" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/01/Solar-tenders-trend-graphical-presentation.png 777w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/01/Solar-tenders-trend-graphical-presentation-300x195.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/01/Solar-tenders-trend-graphical-presentation-768x500.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/01/Solar-tenders-trend-graphical-presentation-650x423.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/01/Solar-tenders-trend-graphical-presentation-624x406.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/01/Solar-tenders-trend-graphical-presentation-600x391.png 600w" sizes="(max-width: 777px) 100vw, 777px" /></em></p>
<p><em>The chart above shows the inconsistency in the volumes tendered through quarters from 2020 to date. </em></p>
<p>The tendered capacity is hard to predict without an official trajectory.</p>
<p><strong>Tender uncertainty leads to higher project costs </strong></p>
<p>Unplanned tenders give very little room for project developers to effectively plan the required finances and secure supplies of modules and other components at competitive prices.</p>
<p>While the government has taken similar steps for offshore wind project tenders, with the Ministry of Power announcing that bids for such projects will be <a href="https://mercomindia.com/bids-for-12-gw-of-offshore-wind-energy/" target="_blank" rel="noopener">issued</a> in blocks of 4 GW every year for three years, other renewable energy sources still lack such certainty.</p>
<p>Stakeholders said that the state regulators could develop a mechanism for releasing a tender schedule in advance. The renewable power purchase obligations for individual states are decided much earlier, giving them enough time to plan their procurement and corresponding tenders for them. The regulators can hold the power distribution companies accountable for not adhering to the schedule.</p>
<p>A senior regulatory executive at a multinational renewable energy corporation said, “The agencies come up with tenders with a concise timeline, and they keep on extending it. Eventually, a developer works with rolling and extendable bids. There is a need for a structured tendering schedule, with a bidding timeline of four to six months, giving developers sufficient time to work on the financials to avoid going back and forth.”</p>
<p><strong>A visible tender list will iron out grid connectivity issues</strong></p>
<p>A Mumbai-based renewable energy developer said, “The gestation period of the projects is normally 12 to 18 months, whereas setting up substations and associated evacuation systems take much longer. States like Maharashtra and Gujarat don’t even provide a time extension for the projects in cases where the connectivity and access are not operationalized within the scheduled time.”</p>
<p>Further, with the policy of mandatory module procurement from the Approved List of Models and Manufacturers (ALMM), the visibility and certainty of upcoming tenders become even more crucial so that developers can tie up module supplies in time.</p>
<p>The success of tenders is highly dependent on the design of the tender, the number, and the nature of the participating bidders. A lack of participation can lead to expensive offers, and large-scale projects risk not receiving any offers.</p>
<p>India’s installed renewable energy capacity, including large hydro projects, <a href="https://mercomindia.com/solars-share-in-the-installed-power-capacity-mix-rises-to-14-7/" target="_blank" rel="noopener">stands</a> at 163.7 GW as of the third quarter of 2022, a long way off the 450 GW target the country has set to achieve by 2030. Introducing a tender trajectory would provide a much-needed boost to the installation numbers in the coming years.</p>
<p>&#8220;Regulatory agencies should be required to release and abide by tender and auction timetables that tie in with the RPO of each state for a more streamlined, predictable procurement system. India needs to install more than 27 GW of solar per year to meet its 2030 goal, which will be hard to do with the current process of unpredictable tenders. Making this change will add long-term visibility to the markets and help attract more international capital that India sorely needs,” said Raj Prabhu, CEO of Mercom Capital Group.</p>


Renewables Tender Trajectory Key to Mitigating Project Risks

<p>Continuing with its tender spree, the Solar Energy Corporation of India Ltd. (<a href="http://seci.co.in/index.php" target="_blank" rel="noopener">SECI</a>) has now issued tenders for the development of both wind and solar projects.</p>
<p>SECI has announced tender for 1,800 MW of interstate transmission system (ISTS)-connected wind power projects under Tranche-VIII to be developed anywhere in India. The detailed Request for Selection (RfS) will be available for downloading by March 29, 2019. This follows the tender issued by SECI to set up <a href="https://mercomindia.com/seci-tender-wind-solar-rooftop/" target="_blank" rel="noopener">1,200 MW</a> of ISTS-connected wind power projects (tranche-VII) on a pan India basis.</p>
<p>SECI has also tendered 2,000 MW of grid-connected solar projects to be set up with central government support in the form of viability gap funding (VGF). These projects will be set up under the Central Public Sector Undertaking (CPSU) Phase-ll program by government producers. The detailed RfS will be available for downloading by March 25, 2019. The <a href="https://mercomindia.com/12-gw-solar-cpsu-domestic-modules-4-yrs/" target="_blank" rel="noopener">second phase</a> of this program of setting up 12 GW of grid-connected solar PV projects recently received the President of India’s approval.</p>
<p><a href="https://mercomindia.com/seci-floating-solar-tender-tamil-nadu/" target="_blank" rel="noopener">Recently</a>, SECI had issued a tender for the utilization of water bodies (reservoirs, dams, lakes) in Tamil Nadu for the development of 250 MW of floating solar PV capacity.</p>
<p>On <a href="https://mercomindia.com/seci-3-solar-tenders-1-4-gw/" target="_blank" rel="noopener">March 1, 2019</a>, SECI also issued another lot of tenders. The tenders were for setting up 750 MW of grid-connected solar PV power projects in Rajasthan (Tranche-II Non-Solar Park), for 500 MW of grid-connected solar power projects in Tamil Nadu (Phase-1, Non-Solar Park).</p>
<p>It has also <a href="https://mercomindia.com/seci-tenders-14-mw-solar-42-mw-bess/" target="_blank" rel="noopener">issued</a> a tender for setting up 14 MW of solar power projects with 42 MWh battery energy storage system (7MW/21MWh each) in Leh and Kargil division. Both Leh and Kargil will have a 7 MW solar project with battery storage of 21 MWh each.</p>
<p>According to the <a href="https://mercomindia.com/mnre-tender-solar-wind-projects-march-2018/" target="_blank" rel="noopener">tender trajectory</a> issued by the Ministry of New and Renewable Energy (MNRE), approximately 30 GW were expected to be tendered in FY 2018-19. The tendered capacity has exceeded the intended capacity.</p>


trajectory

Get the most relevant India solar and clean energy news.

RECENT POSTS