The renewable energy (RE) sector has seen the emergence of a hierarchy among players over the years, with those consistently participating in allocations leading the pack. The initial decade of the sector’s growth, therefore, was also a period of stabilisation, establishing the successful players who grew with the sector. That dynamic has, however, started changing in the almost-commoditised standalone solar vertical. Setting up solar farms with overflowing supply chains has become a quick target for a variety of entities looking to diversify. The established players, on their part, are active ..read more

The Ministry of Power has proposed amendments to its guidelines for tariff-based competitive bidding with an aim to streamline procurement of power from renewable energy (RE) projects. These include the guidelines for firm and dispatchable power projects with energy storage notified on June 9, 2023, solar projects notified on July 28, 2023, wind projects notified on July 26, 2023, and wind-solar hybrid projects notified on August 21, 2023. The amendments proposed are as follows: The tendering agency may specify a substation for the project Power purchase agreement (PPA) can be of 25 years, or ..read more

The renewable energy sector has seen project momentum and grown by leaps and bounds over the past decade. The installed base of renewable energy (excluding hydro) has grown at a CAGR of 15% between 2014-2024. Taking a deeper view of the project level momentum in space, an analysis on 57.6 GW of commissioned and under construction projects suggests the segment has managed to avoid excessive delays uptil 2022 though of course supported by policy led extensions to SCODs. On average only 16% of the capacity scheduled to commission between 2019 and 2022 saw SCODs spilling over to subsequent years ..read more

The government’s decision to remove the waiver of Inter State Transmission System (ISTS) charges for renewable energy (RE) generation projects will push up the costs for developers and consumers. The waiver, aimed at promoting RE and reducing the overall cost of these projects, was first implemented in 2018 under the National Tariff Policy and extended to solar and wind power projects commissioned before December 31, 2022. The government later extended the waiver to include projects commissioned by June 30, 2025. Now, with ISTS waiver being removed in phases for projects commissioned after Jun ..read more

Tendering and allocation of renewable energy (RE) projects have slowed down this fiscal, indicating a possible loss of momentum in commissioning next fiscal. After an impressive show last fiscal, when a total of 101 GW of RE capacity was tendered and 60.2 GW allocated, in the first of this fiscal only 36 GW has been tendered and 3.5 allocated. If the trend continues, it is likely to have a bearing on the RE generation targets set by the government. The government has set an ambitious target of achieving 500 GW non-fossil fuel capacity by 2030, of which 400 GW is expected to be from variable re ..read more

Renewable energy (RE) procurement has advanced from pure solar and wind to hybrids and now Firm and Dispatchable RE (FDRE), which combines solar and wind energy sources with energy storage, enabling procurement in more flexible manner. The concept has gained momentum with the Ministry of Power issuing guidelines in 2023 for competitive bidding in FDRE projects. FDRE can be largely classified into two categories: Peak supply: The generator provides 100% of the contracted RE power during peak hours, which typically last between 2 and 6 hours. The number of peak hours can vary, such as only eveni ..read more

The draft amendment to the Approved List of Models and Manufacturers (ALMM) Order issued by the Ministry of New and Renewable Energy (MNRE) will help boost domestic manufacturing of solar photovoltaic (PV) cells substantially in years to come. As per the draft, the government will introduce a List-II of approved solar PV cells. Effective April 1, 2026, all projects will need to source modules from List-I, manufactured using cells sourced from List-II. Indeed, tenders submitted after the final order must use List-II cells, and existing modules on List-I must comply with List-II requirements by ..read more

Captive power plants (CPPs) are established alternative to the national grid for domestic industries looking to optimise costs and ensure continuous supply. Between fiscals 2019 and 2023, while India’s electricity requirement grew by 15% from 1,581 terrawatt hours (TWh) to 1,824 TWh, consumption via CPPs rose faster at 25% to 318 TWh. Between fiscals 2019 and 2023, though, installed captive power capacity increased a modest 4% to 78 GW. A big reason for the poor show by captive power projects is policy ambiguity and stringent regulations. Here are two cases in point: Gujarat had imposed 100% o ..read more

Regulatory clarity on long-duration power storage augurs well for the sector India’s rapid transition to renewable energy has made energy storage a crucial component for grid stability and integration of intermittent renewable energy sources into the grid. Pumped hydro storage (PHS) offers a flexible and efficient long-duration energy storage solution, essential for the country’s renewable energy strategy. The National Electricity Plan 2023 projects India’s energy storage capacity requirement at approximately 74 GW/411 GWh by fiscal 2032, with 27 GW/175 GWh from pumped storage plants (PSPs) an ..read more

New players, capacity expansion boost market in India India’s solar glass market is heating up as recent policy changes, aimed at bolstering domestic production, encourage multiple players to enter the fray. Among the policy measures, the Ministry of Finance has imposed a 10% basic customs duty (BCD) on import of solar glass effective October 1, 2024, citing sufficient domestic manufacturing capacity in progress. To recall, the anti-dumping duty imposed in 2017 by the government on imports of solar glass in a bid to safeguard the domestic industry had expired in 2022. In fiscal 2024, India’s i ..read more