India’s renewable energy sector gains momentum with ₹5.25/unit RTC tariff discovery

The Indian renewable energy sector has gained momentum following the discovery of a competitive ₹5.25 per unit tariff for round-the-clock renewable energy (RTC) bids, according to Santosh Sarangi, Secretary for the Ministry of New & Renewable Energy (MNRE). The competitive rate was announced after the Solar Energy Corporation of India (SECI) conducted the latest bidding round, which discovered a rate that surprised the authorities.

The tariff represents a significant milestone for the domestic renewable energy sector, showcasing its growing competitiveness and developers' ability to integrate various technologies such as solar, wind, and storage.

Sarangi emphasized the importance of India's three key pillars in driving the renewable energy sector: policy certainty, domestic manufacturing, and market-creation initiatives. India has already crossed the 300 gigawatt (GW) mark in renewable energy installations and is on track to achieve the Prime Minister's target of 500 GW of non-fossil fuel capacity by 2030.

Key achievements include over 213 GW of solar module manufacturing capacity, 32 GW of solar cell manufacturing capacity, and 85% of wind energy manufacturing being indigenised.

The MNRE Secretary also highlighted the rapid expansion of decentralized renewable energy, noting that PM Surya Ghar has reached 50 lakh households and is progressing towards its goal of one crore rooftop solar installations. In terms of cross-border energy cooperation, Sarangi stressed the importance of physical infrastructure and compatible regulatory systems for regional energy integration.

He also highlighted the potential of the One Sun, One World, One Grid vision, which aims to enable countries across different time zones to share renewable energy.

Sri Lanka's Minister of Energy, Anura Karunathilake, discussed his country's growing renewable energy potential and its Electricity Act, which facilitates a national electricity market and cross-border electricity trading as the market matures. Karunathilake emphasized the need for a regional approach to energy integration, focusing on creating a resilient, interconnected, and competitive regional electricity market that accelerates the clean energy transition and promotes sustainable economic growth for all nations in the region.

He also called for thoughtful planning, sound regulations, mutual trust, and harmonised regulatory frameworks to build an integrated South Asian energy market.