New Delhi: India is set to more than triple the capacity of auctions to allocate renewable energy projects as it seeks to progress toward its 2030 goal of 500GW capacity in clean power generation. Achieving this goal requires an investment of at least RS 2.44 lakh crore or $33 billion.
The nation plans to increase the capacity of auctions to allocate renewable energy projects to 50GW by March 2024, tripling levels of the last five years. The government has expressed a need for new investment to meet the surging demand for electricity and to make the current infrastructure adequate for the future.
However, analysts warn that new investment will require land availability and long-term buyers, and add that challenges such as high-interest rates mean project tenders must be planned carefully before launch.
This plan is part of India’s commitment towards having half of its total energy needs sourced from non-fossil fuels as part of its international climate commitments. India also aims to meet 50% of its electricity requirements from renewable energy sources by 2030, as it plans to reach net zero emissions by 2070.
To achieve this, the country plans to increase the capacity of auctions to allocate renewable energy projects to 50GW by March 2024. However, analysts warn that challenges such as land availability and high-interest rates must be carefully planned before launching project tenders.
Accordingly, India plans to auction 15 gigawatts of projects in each of the first two quarters of the fiscal year that began this month, with about 10 gigawatts offered in both of the subsequent quarters. State-run power companies Solar Energy Corp. of India Ltd., NTPC Ltd., NHPC Ltd. and SJVN Ltd. will be conducting the auctions for the government.
(With Bloomberg inputs)
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