A transparent competitive bidding mechanism has been critical in driving India’s renewable energy growth and attracting large investments in this sector. With 144 GW of installed renewable energy capacity, the country has a long road ahead to reach its 500 GW non-fossil fuel power capacity targets by 2029-30, and these large auctions will play an important role in achieving the goal. The tendering authorities have been very active in launching a host of tenders to attract private players, making this impressive growth in renewable energy possible.
The last quarter of 2023-24 particularly witnessed a large number of successful auctions, as the tendering authorities and developers rushed to allocate and win capacities respectively before the end of the financial year. Renewable Watch Research tracked a total of 17 auctions for a cumulative 23,475 MW of capacity in the utility-scale space across segments such as solar, wind, hybrid and round-the-clock (RTC) power during this period. Interestingly, the hybrid space, comprising solar-wind hybrids and RTC projects, witnessed nine auctions as compared to seven in solar and just one in wind. This shows a growing preference for more balanced renewable energy supply in the form of firm and despatchable renewables, RTC power as well as blended solar and wind power with energy storage.
Solar power
Renewable Watch Research tracked 9,225 MW of total capacity across seven solar auctions during the January-March 2024 period. Of this, NTPC Limited and the Solar Energy Corporation of India (SECI) auctioned capacities worth 3,000 MW each, Gujarat Urja Vikas Nigam Limited (GUVNL) around 1,725 MW and SJVN Limited 1,500 MW. The tariff across various auctions during the quarter ranged from Rs 2.52 per kWh to Rs 2.67 per kWh. SJVN witnessed the lowest tariffs at Rs 2.52 per kWh in its 1,500 MW solar auction, where Solarcraft Power India 8 (BluPine Energy) and GRT Jewellers won 300 MW and 150 MW respectively. Meanwhile, Furies Solren (Mahindra and Mahindra) and JSW Neo Energy won 300 MW and 700 MW respectively at Rs 2.53 per kWh, and NTPC Renewable won 50 MW at Rs 2.54 per kWh.
GUVNL’s 1,125 MW solar auction observed the highest tariff of Rs 2.67 per kWh for 225 MW by NTPC Renewable Energy Limited (NTPCREL). NHPC Limited, JSW Neo Energy and SJVN Limited won 200 MW, 300 MW and 200 MW respectively by quoting Rs 2.66 per kWh, and Solairecraft (Engie) won 200 MW by quoting Rs 2.62 per kWh. Further, GUVNL’s other tender for 600 MW saw three winners: SJVN Green Energy Limited (100 MW) at Rs 2.54, SAEL Industries (200 MW) and Coal India Limited (300 MW), both at Rs 2.55 per kWh.
Meanwhile, NTPC and SECI auctioned the highest capacity – 3,000 MW – during the quarter. During March 2024, SECI auctioned 1,500 MW each under Tranches XIII and XIV. JSW Neo Energy Limited, Sunsure Energy Private Limited and UPC Renewables emerged as winners for 700 MW, 300 MW and 250 MW respectively with Rs 2.56 per kWh, and NTPCREL won 250 MW at Rs 2.57 per kWh under Tranche XIII. Further, ReNew Energy, Avaada Energy, Solairedirect Energy India Private Limited and SAEL Industries Limited won 300 MW, 300 MW, 100 MW and 600 MW respectively at Rs 2.57 per kWh, and NTPCREL 200 MW at Rs 2.58 kWh under Tranche XIV.
Similarly, in NTPC’s solar auction Tranche I, Solarpack Corporation won 300 MW by quoting Rs 2.60 per kWh, and Apraava Energy, Avaada Energy and ReNew Energy won 300 MW, 500 MW and 400 MW respectively by quoting Rs 2.65 per kWh. Meanwhile, in its Tranche II action, Furies Solren (Mahindra Susten) won 300 MW by quoting Rs 2.59 per kWh and JSW Neo Energy and Avaada Energy won 700 MW and 500 MW respectively by quoting Rs 2.60 per kWh.
Wind, hybrids and RTC power
In the wind space, only one wind auction of 500 MW was held in the period January-March 2024. This was GUVNL’s wind auction, which resulted in an allocation of only 164 MW of capacity. By quoting Rs 3.42 per kWh and Rs 3.44 per kWh, Alfanar Projects and Juniper Green Energy Private Limited won 50 MW and 90 MW respectively, and EDF Renewables India Private Limited won 24 MW for Rs 3.45 per kWh. Hopefully, by the end of the next quarter results will be announced for SECI’s 4,000 MW offshore wind energy tender for the allocation of seabed leasing rights off the coast of Tamil Nadu, which has been a highly anticipated tender.
In the solar-wind hybrid segment, a total of 7,000 MW of auctions were conducted, which resulted in an allocation of around 5,060 MW of hybrid capacity during the period January-March 2024 according to Renewable Watch Research. Of this, SECI announced auctions for the highest capacity at 2,000 MW, followed by SJVN, NHPC and NTPC with 1,500 MW each and GUVNL with 500 MW. The tariffs ranged between Rs 2.99 per kWh and Rs 3.49 per kWh. The lowest tariff was observed in GUVNL’s 500 MW wind-solar hybrid auction, where 50 MW was awarded to KPI Green Energy Limited at Rs 2.99 per kWh and 150 MW to Juniper Green Energy at Rs 3.04 per kWh. Meanwhile, the highest tariff of Rs 3.49 per kWh was observed in both NHPC’s and SJVN’s 1,500 MW wind-solar hybrid auctions. NHPC awarded 150 MW to Juniper Green Energy at Rs 3.48 per kWh, as well as 300 MW and 510 MW to O2 Power and Avaada Power respectively at Rs 3.49 per kWh. SJVN auctioned 150 MW to Juniper Green Energy at Rs 3.43 per kWh and 50 MW to Datta Power Infra Private Limited at Rs 3.47 per kWh, while Green Infra Wind Energy (Sembcorp), O2 Power Private Limited and Green Prairie Energy Private Limited won 440 MW, 270 MW and 60 MW respectively at Rs 3.48 per kWh and Avaada Energy won 530 MW at Rs 3.49 per kWh.
In the RTC space, Railway Energy Management Company Limited’s 750 MW auction resulted in the lowest tariffs of Rs 4.25 per kWh quoted by Torrent Power Limited for 100 MW. Other companies won the following capacities: ReNew 200 MW, TEQ Green Power XIII Private Limited (O2 Power) 100 MW, NTPCREL 200 MW and ACME Cleantech Solutions 100 MW by quoting Rs 4.37 per kWh, and Tata Power Renewable Energy Limited won 50 MW by quoting Rs 4.43 per kWh.
Interestingly, three auctions for firm and despatchable renewable energy (FDRE) were held in this period, which were conducted by NHPC, SECI and NTPC. The lowest tariff was witnessed in NHPC’s 1,500 MW auction and BN Hybrid Power-1 Private Limited was allocated 120 MW by quoting a tariff of Rs 4.55 per kWh. Meanwhile, Hero Solar Energy and Solarcraft Power India won 100 MW and 50 MW respectively by quoting Rs 4.63 per kWh, while Juniper Green Energy won 200 MW, ReNew Solar Power won 250 MW and ACME Cleantech Solutions won 680 MW at Rs 4.64 per kWh. The highest tariff in an FDRE auction was witnessed in SECI’s 1,500 MW tender, with Hero Future Energies winning 120 MW by quoting Rs 5.59 per kWh, while JSW Neo Energy won 180 MW, Serentica Renewables India won 100 MW and ReNew Solar Power won 80 MW at Rs 5.60 per kWh. NTPC’s 3,000 MW FDRE had eight winners: ABC Cleantech Private Limited (300 MW) at Rs 4.64 per kWh, ACME Cleantech Solutions Private Limited (54 MW) at Rs 4.73 per kWh, Juniper Green Energy (200 MW) at Rs 4.69 per kWh, Hero Future Energies (120 MW) at Rs 4.69 per kWh, Serentica Renewables India 11 (200 MW) at Rs 4.71 per kWh, Tata Power Renewable Energy (200 MW) at Rs 4.71 per kWh, BN Dispatchable-1 Private Limited (110 MW) at Rs 4.72 per kWh and ReNew Solar Power (400 MW) at Rs 4.72 per kWh.
Outlook
In the solar and hybrid space, the past three months were quite eventful, witnessing a slew of successful auctions and the discovery of competitive tariffs. Overall, solar capacity auctioned witnessed an upward trend, in contrast to wind. However, in India’s energy transition, the importance of wind cannot be understated to ensure RTC power supply, and therefore, initiatives assisting wind power growth are necessary. Going forward, with more emphasis on RTC power supply, hybrid projects are likely to witness uptake. In this regard, states with abundant wind potential, such as Tamil Nadu, Karnataka, Maharashtra, Andhra Pradesh, Rajasthan and Gujarat, with abundant wind potential have huge potential for solar generation, and thus, hybrid systems can help India utilise the country’s wind power potential.
