Rajasthan has signed several renewable energy agreements worth trillions in investor meets ahead of the Rising Rajasthan investor summit in December 2024
Among the MoUs signed are Tata Power’s INR 1.2 trillion, and Avaada Group’s INR 1 trillion renewable energy projects and PV manufacturing investments
NTPC Green Energy Limited too will develop 25 GW of renewable energy capacity in the state
Known as the Land of Kings, the state of Rajasthan is today India’s leading state with the highest installed capacity of solar power having installed 24 GW out of the national total of 89.43 GW as of August 31, 2024. With its high solar irradiance and vast stretches of desert land, it continues to attract investors in the renewable energy space.
Ahead of the state’s planned Rising Rajasthan investor summit from December 9 to 11, 2024, the state government has entered several memorandums of understanding (MoU) for various sectors at a series of investor meets. For renewable energy, the investment announced at such pre-summit investor meets is already worth trillions.
Under its MoU with the state, Tata Power plans to invest INR 1.2 trillion including building 10 GW wind and solar capacity, and 2 GW of module manufacturing capacity (see India’s Tata Power To Invest INR 1.2 Trillion For RE In Rajasthan).
Another Indian renewable energy company Avaada Group has said it will invest INR 1 trillion ($12 billion) to build a 10 GW solar power project, a 1 GW wind power plant, a 1 metric ton per day (MTPA) green ammonia project, and a 1.2 GW pumped hydro storage project in the state.
Of these, the solar, wind and green ammonia projects are expected to become fully operational by 2030. Brookfield-backed Avaada said it plans to develop these projects across Jhalawar, Kota, Barmer, and Bikaner. Avaada’s Chairman Vineet Mittal said, “Rajasthan has always been central to our vision at Avaada Group, from our 5.5 MW project in Jodhpur to the launch of the world's largest single-site solar project of 1,250 MW in Bikaner. Today, we are proud to announce a 6 GW solar project, with LOA, PPA, and connectivity in place.”
A wholly-owned subsidiary of India’s largest state-owned utility NTPC Ltd, NTPC Green Energy Limited (NGEL) plans to develop 25 GW of renewable energy projects in Rajasthan under its MoU with the state government. Details about these plans are scarce as of now.
As of October 6, 2024, the state government had secured investment proposals worth over INR 12.55 lakh crore across various sectors, including renewable energy. Among other names in the renewable energy industry that have signed similar MoUs with the state are Mahindra Susten, Jindal Renewable Power, and Essar Renewables. It is now taking the investor summits internationally with one planned in Singapore on October 8, 2024.
The government is also encouraging solar PV manufacturing in the state touting the local availability of silver for use in solar cells, feldspar and ball clay for the glass industry, as well as for use in the front cover of PV panels.
In February 2022, Rajasthan signed letters of intent (LOI) and MoUs worth INR 3.05 trillion for more than 90 GW of renewable energy capacity including Axis Energy Group’s 28 GW solar park and 4 GW module manufacturing plant (see MoUs & LOIs For 90 GW+ RE In Rajasthan).
However, the state’s solar market is facing challenges related to grid access and land acquisition. A significant stretch of land, around 90,000 sq. km., falls under the Great Indian Bustard (GIB) habitat that’s home to this critically endangered bird. A Supreme Court blanket ban on overhead transmission lines in the habitat had several large-scale solar energy projects come to a standstill here. The reason was that the environmentalists blamed overhead power transmission lines for leading to GIB deaths.
In March 2024, the Supreme Court reportedly lifted the ban on some 77,000 sq. km., while leaving GIB’s core habitat of 13,000 sq. km. area off-limits considering India’s commitment to achieve net-zero targets.
Rajasthan aims to achieve 90 GW of renewable energy capacity by fiscal year 2020-30 and supply surplus solar energy to other states. It claims its solar generation potential at 142 GW. In the interim, it will target 30 GW of solar power by the year 2024-25 (see Rajasthan Targets 30 GW Solar By FY 2024-25).
Speaking at the recently concluded Renewable Energy India Expo 2024 or REI 2024 in Greater Noida, India, Rajasthan’s Energy Minister Hiralal Nagar was quoted as saying that India will be able to install 500 GW of non-fossil fuel-based power by 2030 only when 250 GW of solar is installed in Rajasthan.