Kolkata, Sep 29 (FN Agency) India is the world’s largest market for renewables auctions, and, according to the BNEF, the country is now becoming a world leader in designing complex auctions, requiring various combinations of wind, solar, and energy storage technologies. Tata Power is among the top winners of 2021 auctions, winning more than 900MW so far this year, the report said. Tata Power has further expanded its renewables portfolio this year by winning auctions to develop 900MW capacity to emerge as the leader in the segment. It worth to highlight that the installation of renewables capacity has been on the rise from 11% share in FY11 to 25% in FY21. Several policy initiatives by the government have provided the much- needed boost to the sector. Favourable cost economics has also provided impetus for the rapid increase in renewable based capacities.
The government’s push towards clean energy has garnered interest among global investors, and this is reflected in project tenders getting oversubscribed amid strong participation by global investors and the cost of solar projects dropping further, as seen in the new record low tariff of Rs. 1.99/unit discovered in 500 MW solar projects of the Gujarat Urja Vikas Nigam Ltd. (GUVNL). Sustained enabling regulations for the renewables sector are visible through various policy interventions by the government, catering to both the demand and supply side, such as the ‘Must Run’ status for renewables, lifting of the tariff cap, thrust on domestic solar manufacturing, enhancing the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme, priority sector lending, Domestic Content Requirement (DCR) projects and so on. Tata Power is a leading player in the renewable generation space, with a presence across the value chain.
With the focus of the government on clean energy transition, specifically solar-based generation, significant growth opportunities in renewables (both organic and inorganic) are expected to arise in the future. Tata Power plans to increase its footprint by capitalising on those opportunities through value-accretive projects. It will also keep in evaluating opportunities for growth through upcoming models of hybrid, round-the-clock (RTC) supply and renewables with storage. Opportunities in the captive space for renewable generation are also being evaluated by the Company.