Renewable Energy Agencies Asked to Give Preference to Clean Projects with Storage in New Bids: Minister Naik

Renewable energy implementing agencies, including SECI, have been asked to invite bids for clean energy projects with storage, as there is growing preference for sourcing green power from such projects, Union Minister Shripad Yesso Naik said on Wednesday.

With the declining cost of solar-plus-storage and dispatchable renewable power, there is a growing preference among distribution companies and end procurers for such solutions, the Minister of State for New and Renewable Energy said in a reply to Lok Sabha.

This shift has been accompanied by a reduced demand for plain solar power. Solar-plus-storage configurations are also being preferred over wind-solar hybrid projects, particularly due to their ability to supply power during peak demand hours, Naik said.

The government has accordingly sensitised renewable energy implementing agencies (REIAs), namely Solar Energy Corporation of India (SECI), NTPC, NHPC and SJVN, to move from plain solar tenders to tenders of solar with energy storage, tenders with configuration to supply renewable power during peak hours.

They have also been asked to move to tender with configuration to supply Firm and Dispatchable Renewable Energy (FDRE).

In a separate reply, Naik said the investment in the RE sector has increased considerably from Rs 0.66 lakh crores in 2020-21 to Rs 2.68 lakh crores in 2024-25, although higher mobilisation of RE finance to meet national targets, particularly in emerging segments such as energy storage, green hydrogen, offshore wind, and transmission infrastructure, is required.

As per an IREDA report, India requires an estimated Rs 30.5 lakh crore from FY 24 till FY 30 to achieve 500 GW of non-fossil fuel-based power capacity.