Stalled solar and wind projects may get a new lease of life as MNRE plans to rebid them with battery storage, matching Discoms’ peak-hour needs.
The Ministry of New and Renewable Energy (MNRE) plans to rebid stalled solar and wind projects by linking them with battery energy storage systems (BESS). The move is reportedly aimed at addressing grid stability concerns and meeting peak demand requirements of power distribution companies (Discoms).
Nearly 40 gigawatts (GW) of renewable energy capacity, largely from standalone solar and wind, has remained idle as Discoms have not signed power purchase agreements (PPAs). Officials said this capacity will now be remodelled into firm and dispatchable renewable energy (FDRE) or round-the-clock (RTC) supply.
Market dynamics have changed with daytime power prices falling on exchanges due to surplus solar output. This has reduced demand during peak solar hours, pushing Discoms to prefer blended solutions that combine renewable energy with storage.
SECI is reformulating bidding guidelines to reflect actual demand, as highlighted in a report by the Hindu Business Line.
Meanwhile, future bids floated by renewable energy implementing agencies will include storage as a standard feature. Recent SECI tenders are already structured as FDRE or RTC supply, sources confirmed.
The government is also considering allowing developers to exit long-delayed projects without forfeiting bank guarantees. Until now, surrendering projects meant losing guarantees. Officials said relaxations may be introduced, potentially with a cut-off date.
An August report by JM Financial estimated that around 46GW of renewable capacity is stuck without PPAs. Of this, 16GW is vanilla solar. NTPC and NHPC account for the largest backlog with 16GW and 12GW, respectively, followed by SECI and SJVN, each with 9GW.
Officials said the rebidding strategy will align supply with shifting demand patterns. From pure solar and wind until 2019, to FDRE and RTC from 2022, and now to solar-plus-storage, India’s renewable sector is evolving rapidly to meet system needs.
