(MENAFN- KNN India)
New Delhi, Jun 18 (KNN) India is likely to witness a significant surge in renewable energy capacity addition during the ongoing financial year, according to senior government officials.
The country is expected to add 30-35 gigawatts (GW) of renewable energy capacity, surpassing the previous fiscal year's addition of 18.4 GW, reported ET.
Renewable energy sources played a pivotal role in India's power generation capacity expansion during the fiscal year 2023-2024 (FY24), contributing 71 per cent of the total 26 GW added, as reported by the Council on Energy, Environment and Water.
Nodal agencies responsible for conducting auctions are likely to bid out 50 GW of renewable energy capacity in the current fiscal year 2024-2025 (FY25).
This figure aligns with the predetermined trajectory for each of the five years starting from FY24. In the previous fiscal year, these agencies auctioned approximately 51 GW of renewable energy capacity.
In addition to the central agencies, states and companies may also conduct separate auctions for the commercial and industrial segments.
India has set an ambitious target of reaching 500 GW of renewable energy capacity by 2030.
According to a recent report from Moody's Ratings, achieving this goal requires an annual addition of around 44 GW.
The report estimates that India will need investments ranging from USD 190 billion to USD 215 billion over the next seven years to meet the renewable energy capacity target.
Furthermore, an additional investment of USD 150 billion to USD 170 billion will be required for electricity transmission, distribution, and energy storage to accommodate the incremental renewable energy capacity.
Renewable energy sources, excluding large hydro projects, currently contribute 146.65 GW to India's total installed power capacity of 444.8 GW.
Moody's anticipates that renewable energy and electricity transmission will continue to drive investments in the power sector over the next six to seven years.
In recent tenders, the share of firm and dispatchable renewable energy (FDRE), which allows for programmable power supply based on demand, has gained traction since its introduction last year.
FDRE transforms the variable nature of renewable energy into a firm and dispatchable source by integrating it with energy storage systems, enabling round-the-clock power delivery.
FDRE enables power procurement on a "demand-following" basis, creating a viable alternative to coal, hydro, and other dispatchable power technologies, as stated by JMK Research & Analytics in February.
Since its introduction in mid-2023, more than 90 per cent of non-pumped hydro storage tenders issued in India have been FDRE tenders.
(KNN Bureau)
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