India Planning 30 GW RE Plants Along Western Border?

Bloomberg: Sunny, Arid Regions Along Western Border Of India, Read Gujarat & Rajasthan, May Host Renewable Energy Plants Worth 30 GW Capacity; APERC Approves Solar Power Tariffs For 1.7 GW In Andhra Pradesh
05:18 AM (Beijing Time) - 21. October 2019
Sam-Sand-Dunes-PNG

To expand India's renewable energy capacity, the country is reportedly planning to set up renewable energy plants worth 30 GW along its western border in the states of Rajasthan and Gujarat, as per Bloomberg. Pictured are sand dunes in Jaisalmer district in Rajasthan. (Photo Credit: District Administration Jaisalmer)

Key Takeaways

  • Bloomberg has reported through sources that India is planning to install 30 GW worth of renewable energy plants along its western border
  • It wants to utilize the abundant sunny, arid and windy desert regions of Rajasthan and Gujarat through these efforts
  • In another news from the country, the APERC has approved tariffs discovered through auctions conducted by the NTPC and SECI in Andhra Pradesh which should come as a relief to the winners of the 1.7 GW solar capacity in the state, reported Mercom

As per unofficially shared plans by unidentified sources of Bloomberg, India may be considering setting up 30 GW of renewable energy capacity along the desert region of its states in western region, namely Rajasthan and Gujarat. The government wants to make use of the sunny, arid and windy region along the western border, Bloomberg reported.

The government is seeking to expand its renewable energy capacity and reduce the share of fossil fuels in its energy mix through these efforts. However, Bloomberg said the discussions are currently private and at an early stage.

If the plans came to fruition, this could help the country in expanding its renewable energy capacity which the Prime Minister Narendra Modi has pledged to scale up to 450 GW by 2030. The interim plan is to achieve 175 GW capacity by December 31, 2022 (see India Clarifies 175 GW RE Target Achievement Date).

Among other large-scale renewable energy projects, the government had announced in December 2018 its plans to deploy 23 GW grid connected ultra-mega solar PV capacity in Jammu and Kashmir; but now now it plans this capacities to be installed in union territory (UT) (see India Plans 23 GW Solar PV For Jammu & Kashmir).

Tariffs for 1.7 GW Solar In Andhra Pradesh approved

Meanwhile, the ongoing tussle between renewable energy generators with legal power purchase agreements (PPA) and the State Government of Andhra Pradesh that put some 5.2 GW capacity under stress, has some update. The Andhra Pradesh Electricity Regulatory Authority (APERC) has approved the tariffs of tenders conducted by the Solar Energy Corporation of India (SECI) and the National Thermal Power Corporation (NTPC) in India’s National Solar Mission Phase-II, Batch-II, Tranche-I.

These projects are: 750 MW Solar Park at NP Kunta, 750 MW Kadapa Ultra Mega Solar Park and 250 MW project at Kadapa Solar Park, according to consultancy Mercom India Research. Tariffs for these projects were in the range of INR 2.72 and INR 3.15 ($0.038 and $0.044) per kWh.

As a result, NTPC, SECI and Andhra discoms have to respond to the amendments recommended by the objectors to the long-term power sale agreements (PSA). Basis that, APERC will consider incorporating these into the PPAs and PSAs, said Mercom.

Indeed, action is required. A report from credits ratings agency CRISIL warns that payment delays by discoms in Andhra Pradesh and Telangana might hurt the credit outlook of the entire sector (see CRISIL: Resolve Discom Payment Uncertainty For RE Firms).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

Write, follow the author.
Email

Anu Bhambhani