Renewables-plus-storage auctions to gain traction in India

India Ratings (Ind-Ra) expects the country to have added 25 GW to 28 GW of renewable energy generation capacity in fiscal year 2024-25 – which ends on March 31, 2025. Some 18.8 GW was installed from April to December 2024 and Ind-Ra said the new capacity largely comprised solar projects.
The ratings company expects renewables to be supplying 55% to 60% of new power generation capacity in 2030, and to contribute 35% to 40% to the total power generation mix by that stage.
Land acquisition, connectivity, and adequate electricity evacuation and transmission infrastructure remain critical hurdles to new generation capacity, Ind-Ra said.
“Given the expected energy demand growth and energy transition plans, India needs to add 50 GW of renewable energy capacity per annum ’til 2030,” said Ind-Ra infrastructure analyst Vinitha Arunachalam. “With a strong pipeline of 174 GW, as of September 2024, and healthy tendering activity, implementation remains key to achieving the set targets.”
All-India power generation capacity reached 457 GW in November 2024, with renewables contributing 45% – 205 GW. Renewable energy, including large hydro, is set to contribute 21% of India’s power generation capacity in fiscal year 2025 with the balance largely comprising thermal generation.

Capacity auctions
Around 32 GW of renewable energy generation capacity was allocated in auctions in April to December 2024, with a significant contribution from firm and dispatchable renewable energy, peak, and hybrid tenders.
India’s National Electricity Plan, which runs through 2032, calls for around 74 GW/411 GWh of energy storage capacity and Ind-Ra believes that will boost the number of renewables-plus-energy-storage tenders.

“Given the uncertainty and intermittency in renewable energy projects, the need for round-the-clock power and to maintain grid stability, renewables tenders with hybrid, storage, and round-the-clock [features] are expected to garner further traction,” said Bharath Kumar Reddy, associate director for infrastructure at Ind-Ra. “Furthermore, the government’s impetus on the sector and favorable input prices are further expected to maintain a strong under-construction pipeline.”

From pv magazine India.