India plans 250GW of renewable capacity in five years

: Coal, Electricity, Emissions
23/04/06

India plans to add 250GW of renewable energy capacity in the next five years to achieve 500GW of installed renewable capacity by 2030, in a move that could aid its transition away from fossil fuels like coal.

The government has invited bids for 50 GW/yr of renewable energy capacity from the April 2023-March 2024 fiscal year until 2027-28, considering that a renewable energy project takes around 18-24 months for commissioning, the renewable energy ministry said on 5 April. India's power ministry is already working on upgrading and adding transmission system capacity for evacuating 500GW of electricity from non-fossil fuels.

"The structured bidding trajectory will provide sufficient time to the RE [renewable energy] developers to plan their finances, develop their business plans and manage the supply chain more efficiently," power and renewable energy minister RK Singh said.

These annual bids for inter-state transmission-connected renewable energy capacity will also include the setting up of wind power capacity of at least 10 GW/yr. State-controlled Solar Energy Corporation of India and utilities NTPC, NHPC and SJVN will call for the bids as state-appointed renewable energy implementing agencies (REIAs), the renewable energy ministry said.

India currently relies heavily on coal for power generation. Coal typically accounts for more than 70pc of India's actual power generation as it is considered to be an affordable source of energy. Renewables currently account for just around 10pc of India's power generation.

The 50GW/yr targeted bid capacity for 2023-24 will be allocated among the four REIAs. The REIAs will be permitted to bring out bids for solar, wind and solar-wind hybrid energy capacity, all with or without storage, based on their assessment of the renewable energy market or according to directions from the government.

India had a renewable energy capacity of 168.96GW as of 28 February, with about 82GW at various stages of implementation and about 41GW in the tender stage, the renewable energy ministry said, adding that it includes 64.38GW solar power, 51.79GW hydropower, 42.02GW of wind power and 10.77GW of bio power.

The renewable energy ministry also announced a quarterly bidding plan for 2023-24, for at least 15GW of renewable energy capacity each during April-June and July-September, followed by 10GW each during October-December and January-March 2024.

These capacity additions will be over and above renewable energy capacities that come under the government's rooftop solar scheme, which subsidises rooftop solar installations, and the PM-Kusum programme that aims to promote solar farming among Indian farmers.

The government in its budget for 2023-24 promised support of 83bn rupees ($1.01bn) out of a total investment of Rs207bn for an inter-state transmission system for evacuation and grid integration of 13GW of renewable energy from Ladakh, where NTPC's renewable subsidiary NTPC REL plans to set up country's first green hydrogen mobility project. Delhi has allocated a total of Rs350bn for its 2070 net zero goal in the budget, covering areas like hydrogen, renewables and green mobility.

By Rituparna Ghosh

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24/12/06

Republicans weigh two-step plan on energy, taxes

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Denmark's wind tender flop linked to H2 network doubts

24/12/06

Denmark's wind tender flop linked to H2 network doubts

London, 6 December (Argus) — Denmark's failure to attract bids in an offshore wind tender was partly caused by the country's lack of firm commitment to a hydrogen pipeline network, according to Danish and European hydrogen associations. For Denmark's hydrogen industry the failed tender is raising concerns that Copenhagen might resort to state aid for offshore wind, which could jeopardise renewable hydrogen production that is compliant with EU rules. Denmark unsuccessfully offered three areas totalling 3GW in a first part of the auction that ended on 5 December, and will offer another 3GW in a second part ending in April 2025. The "very disappointing" result will now be investigated by the Danish Energy Agency to discover why market participants failed to bid, energy minister Lars Aagaard said. Wind project developers may have worried that low electricity prices in an increasingly saturated power market and inadequate export routes — either via power cables or as hydrogen via pipeline — would deny a return on investments, industry participants said. Ample offshore wind potential could allow Denmark to generate power far in excess of its own needs. But in order to capitalise on this the country would need to find a way of getting the energy to demand markets. Turning offshore wind into renewable hydrogen for export was "a very attractive solution" for developers, Hydrogen Europe chief policy officer Daniel Fraile said, but would rely on timely construction of a network "all the way from the coast to Germany's hydrogen-hungry industry." Denmark's hydrogen network was recently pushed back to 2031-32 from an initial 2028, partly because of an impasse over funding that provoked anger from industry. The government has said it will only help fund the hydrogen transport network if there are sufficient capacity bookings guaranteeing its use. But this approach increases risks for developers, according to Fraile. "You need to handle the risk of winning the offshore tender, finding a hydrogen offtaker in Germany and commit to inject a large amount of hydrogen over several years. Then deliver the project on time and on cost," he said. "This is a hell of an undertaking." Industry association Hydrogen Denmark's chief executive Tejs Laustsen Jensen agreed, calling the failed tender "a gigantic setback". "The uncertainty about the hydrogen infrastructure has simply made the investment too uncertain for offshore wind developers," he said. "Now the task for politicians is to untie this Gordian knot." "Of course, the tender must now be re-run, but if the state does not guarantee in that process the establishment of hydrogen infrastructure, we risk ending up in the same place again," he said. The booking requirement as a prerequisite for funding the network "must be completely removed," Jensen said. Green energy association Green Power Denmark said "there is still considerable uncertainty about the feasibility of selling electricity in the form of hydrogen," but pointed to other factors that may have led to the tender failing to attract bids. Wind turbines and raw materials have become more expensive because of inflation while interest rates have risen sharply, reducing the viability of such projects, the group's chief executive Kristian Jensen said. Unlike some other countries, Denmark does not intend to fund grid connections or provide other subsidies, he said. Unwanted help Hydrogen Denmark's Jensen warned against the government resorting to subsidies to help get offshore wind farms built. "State support for offshore wind would be the death knell" for the hydrogen sector and would "de facto kill all possibilities for a green hydrogen adventure in Denmark," he said. Granting state support for offshore wind farms would mean these assets would not comply with the additionality requirement of the EU's definition for renewable fuels of non-biological origin (RFNBO), which are effectively renewable hydrogen and derivatives. EU rules state renewable assets are only considered 'additional' if they have "not received support in the form of operating aid or investment aid," although financial support for grid connections is exempt from this. "If state aid is provided for the offshore wind that is to be used to produce the hydrogen, we will lose the RFNBO stamp, and the Danish hydrogen cannot be used to meet the green EU ambitions for, among other things, industry and transport, and the business case is thus destroyed," Jensen said. By Aidan Lea and Stefan Krumpelmann Geographical divisions of Denmark's H2 network plan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US House panel approves river infrastructure bill

24/12/06

US House panel approves river infrastructure bill

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UK fuel mix disclosure ‘no longer fit for purpose’

24/12/05

UK fuel mix disclosure ‘no longer fit for purpose’

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Australian thermal coal exports drop on year in October

24/12/05

Australian thermal coal exports drop on year in October

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