India Boosts Green Energy Bids with Supply Profile Tweaks

The Indian government is actively exploring adjustments to the supply profiles of stalled renewable energy projects, particularly by integrating battery storage solutions. This strategic move aims to help secure buyers for approximately 42 GW of auctioned renewable energy capacity that currently lacks off-takers.

Renewable Energy Secretary Santosh Kumar Sarangi stated these changes would be implemented within the existing discovered tariffs. This initiative responds to increasing solar curtailment and a growing demand for continuous renewable power from distribution companies (discoms).

Addressing Stalled Capacity Challenges

Developers are already incorporating battery energy storage systems (BESS) into conventional solar projects to enhance their appeal. Standalone solar projects account for a significant portion of the capacity yet to find buyers.

REIAs have been instructed to identify methods for discoms to purchase this capacity, potentially through profile changes at existing rates. While storage improves attractiveness, the government acknowledges that not all stalled projects, especially many plain-vanilla solar bids, will secure buyers.

Approximately 17-18 GW of standalone solar projects currently lack off-takers. Additionally, another 14-15 GW of capacity was awarded at relatively high tariffs, making them less appealing to buyers.

Cancellation is not the government’s preferred option, with REIAs continuing efforts to secure buyers first. For projects deemed unviable, the Central Electricity Regulatory Commission’s (CERC) July 2026 regulations offer a penalty-free exit.

Developers can withdraw without forfeiting bank guarantees for connectivity under these regulations. Plain solar projects and some hybrid bids with high price discovery are most susceptible to this unviability.

The Imperative of Battery Storage Integration

The emphasis on storage directly addresses rising curtailment, where rapid solar additions lead to significant daytime surpluses. India’s transmission system has struggled to absorb excess generation.

Approximately 11% of solar generation was curtailed during the hottest months this year. Between April and June, India’s transmission system could not absorb over 8 billion kWh, despite 63 billion kWh reaching the grid.

Around 21 GW of renewable projects have only part-time grid access, which increases their vulnerability to curtailment. Secretary Sarangi anticipates substantial growth in battery storage as India develops its transmission infrastructure.

This transition aims towards firm and dispatchable renewable power. India is projected to need about 411 GWh of storage by 2031-32, with 156 GWh already in tendering or order-placement stages.

Auction designs are evolving to favor firm and dispatchable renewable energy, solar-wind hybrid, and round-the-clock projects. A recent 1,000-MW round-the-clock renewable tender achieved a tariff of approximately Rs 5.25 per unit.

This tender guaranteed 90% power availability from 6 pm to 10 am. This shift from merely adding capacity to providing consistent power underscores the immense capital needed.

India will require an estimated $500 billion in renewable energy investment by 2030. Furthermore, about $13 trillion will be needed by 2070 to support this energy transition.