New Delhi, Feb 26 (KNN) Investment Information and Credit Rating Agency (ICRA) has reported that India is on course to increase its installed renewable energy (RE) capacity, excluding hydro, from the current 135 GW as of December 2023 to an estimated 170 GW by March 2025.

The report highlights that this capacity expansion is supported by substantial tendering activity, with over 16 GW of projects already bid out and an additional 17 GW in the pipeline.

These developments align with the Government of India's target of achieving an annual bidding capacity of 50 GW, set in March 2023.

The agency forecasts a significant uptick in the contribution of RE, including large hydro, to India's total electricity generation, from approximately 23 per cent in FY2024 to a projected 40 per cent by FY2030.

This growth strategy includes addressing intermittency issues through the development of Round-the-Clock (RTC) supply from renewable sources.

Moreover, ICRA's report highlights an enhancement in payment discipline among state distribution utilities (discoms) towards RE independent power producers (IPPs) following the implementation of late payment surcharge (LPS) rules in June 2022.

This positive trend, with discoms clearing dues within three months and settling past dues in instalments under the LPS scheme, underscores the importance of financial reforms by states to strengthen the financial standing of discoms.

(KNN Bureau)