The bids will be split into multiple contracts and the final requirement could reach nearly 5 GW over five years, adding up to a contract value of Rs 35,000 crore
Tata Power is inviting bids for the supply of wind turbines with a total capacity of over 3 gigawatts (GW), which will be installed at its wind-solar hybrid renewable energy facilities across the country over the next three to five years, reported the Economic Times, citing sources.
The total value of the bids could be more than Rs 21,000 crores and among one of the largest wind turbine orders ever. Presently, the cost of setting up 1 MW of wind energy plant is around Rs 7 crore. This large-scale order is expected to intensify competition among the wind turbine suppliers, which may lead to affordable and efficient wind energy solutions.
As per the Economic Times report, there are four major original equipment manufacturers (OEMs) taking part in the bidding process, including Siemens Gamesa, Senvion India, Envision Energy, and Suzlon Energy.
The bids will be split into multiple contracts and the final requirement could reach nearly 5 GW over five years, adding up to a contract value of Rs 35,000 crore. Tata Power has plans to invest about $9 billion to expand renewable energy capacity in the next five to six years.
Tata Power is reported to be looking to install renewable energy capabilities at its group companies, such as Tata Steels, etc. The company is looking to go 100 per cent green by FY45. Currently, it has a renewable energy capacity of 10.5 GW with plans to get to 20 GW by FY30.
The company has a target to set up 1 GW of wind capacity per year for which they have sought bids for long-term supply of wind turbines, according to an official who spoke to the Economic Times.
This year, the company intends to spend approximately Rs 20,000 crore on capex, half of which will go towards renewable energy and the remainder on distribution, transmission, and coal-based plants.
Tata Power is also setting up a 966 MW hybrid plant to deliver 24-7 renewable energy supply to Tata Steel. It has also signed an agreement with state-owned SJVN to set up a 1.3 GW firm and dispatchable renewable energy project, according to the annual report for FY24 of Tata Power.
India also aims to boost its wind energy generation along with its solar boom; the government is aiming for 25 GW of wind energy by 2028. After 2020 and till the first half of 2024, the country was able to add 9 GW of capacity.
According to the Fitch Ratings report on October 3, India has seen a jump in new renewable energy projects auctions to about 70 GW in this fiscal year, which could boost energy projects in the next two to three years.
Tata Power's move for the bids is welcoming as it has came when the demands for standalone wind projects in India has been relatively week over the last three four years.