India’s clean power auctions reached a new record in 2024, growing 2.3 times compared to the previous year. The total auctioned capacity hit 59 gigawatts (GW) in alternating current terms. This marks the second year in a row that India has more than doubled its renewable energy auction volumes. The country’s clean energy market is also seeing a shift from simple standalone solar or wind auctions to more complex projects that combine wind, solar, and energy storage.
One of the biggest changes in 2024 was the rise in complex auctions. Hybrid auctions, which combine wind and solar power, made up more than half of the complex auction volumes awarded during the year. Peak power projects also saw significant growth, almost tripling compared to 2023. A major milestone was the successful auction of a load-following complex tender. In this type of project, power generators are required to match electricity demand on an hourly basis, offering a reliable supply similar to traditional power plants.
Solar power tariffs saw a small drop in 2024. The weighted average tariff for standalone solar projects fell by 2% to 2,597 rupees per megawatt-hour (MWh). Even though solar module prices dropped sharply, the tariffs did not fall by the same amount. This suggests that developers are including buffers in their bids to cover risks such as rising import tariffs and new rules that require more local content in solar modules. On the other hand, wind power tariffs increased by 13%, reaching 3,607 rupees/MWh. This rise is likely due to the higher cost of wind turbines and fewer bidders participating in wind auctions. Tariffs for hybrid auctions have also increased every year since 2021 because these projects combine both wind and solar technologies, making them more expensive.
The top winners of India’s clean power auctions in 2024 were Avaada, JSW Energy, and Adani Green. Both Avaada and JSW Energy secured more capacity this year than in any previous year. Many of the top five winners, except Juniper Green, are also investing in equipment manufacturing. By producing their own equipment, these companies can secure their supply chains and ensure a steady demand for their factories from their growing list of projects.
Private independent power producers (IPPs) played a bigger role in 2024. Private IPPs accounted for 86% of all bids, up from about two-thirds over the last two years. Their total capacity bids in 2024 more than tripled compared to 2023. While foreign IPPs bid for more capacity than in earlier years, their overall share of bids fell from 17% in 2022 to 8% in 2024. Meanwhile, government-owned IPPs reduced their activity, placing bids for only 5.4GW(AC) in 2024, compared to 10GW(AC) in 2023.
New participants are also entering the renewable energy space. In 2024, 15 independent power producers won at solar auctions for the first time, and 22 new players won at complex auctions. Some of these new winners include large conglomerates like Essar Renewables, Hinduja Renewables Energy, JSW Energy, Reliance Power, and Torrent Power. Foreign IPPs such as BrightNight, Gentari, Sembcorp Energy, UPC Renewables, and Vena Energy also made their debut in India’s complex clean energy auctions. This growing interest highlights India’s increasing power demand and the expanding opportunities in its renewable energy sector.
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