RE Capacity Growth in India Needs a Wholesale Change in Approach to Bidding in the FDRE Tenders

The report examines the challenges associated with India's Firm & Dispatchable Renewable Energy (FDRE) tenders, noting that many have been cancelled or partially awarded due to developer struggles with their complexity. It argues that current discussions oversimplify the problem by focusing on relaxing demand requirements or finding complementary wind sites, while ignoring the critical role of power market volatility and risk management. The authors propose a transition from 'Developers 1.0'—who focused on levelized cost and CAPEX efficiency—to 'Developers 2.0,' who utilize market modeling, portfolio management, and active trading to handle price, volume, and cannibalization risks. This evolution is presented as essential for India to reach its 2030 goal of 50% installed capacity from renewable energy, including large hydro.

• Firm & Dispatchable Renewable Energy (FDRE) tenders in India are currently facing slow progress, with many hourly demand tenders being cancelled or only partially awarded, suggesting that developers are struggling to effectively assess these complex requirements.
• The authors contend that current debates on FDRE PPAs are too simplistic because they focus on reducing the Demand Fulfilment Requirement (DFR) or seeking complementary wind sites rather than addressing power market risks and battery optimization.
• To remain competitive and sustainable, Indian developers must evolve from a 'Version 1.0' model based on CAPEX efficiency and levelized costs to a 'Version 2.0' model that emphasizes topline optimization through power trading and portfolio management.
• Competitive pricing for next-generation PPAs requires developers to quantify three primary risks: price risk (market volatility), volume risk (weather uncertainty), and cannibalization risk (where high RE penetration drives down prices).

APA

Rodrigues, N., & Vembadi, S. (n.d.). RE Capacity Growth in India Needs a Wholesale Change in Approach to Bidding in the FDRE Tenders. Ember. https://ember-energy.org/app/uploads/2024/10/RE-Capacity-Growth-in-India-Needs-a-Wholesale-Change-in-Approach-to-Bidding-in-the-FDRE-Tenders.pdf

Chicago

Rodrigues, Neshwin, and Shiv Vembadi. RE Capacity Growth in India Needs a Wholesale Change in Approach to Bidding in the FDRE Tenders. Ember, n.d. https://ember-energy.org/app/uploads/2024/10/RE-Capacity-Growth-in-India-Needs-a-Wholesale-Change-in-Approach-to-Bidding-in-the-FDRE-Tenders.pdf.

Wikipedia

{{cite report |last1=Rodrigues |first1=Neshwin |last2=Vembadi |first2=Shiv |title=RE Capacity Growth in India Needs a Wholesale Change in Approach to Bidding in the FDRE Tenders |publisher=Ember |url=https://ember-energy.org/app/uploads/2024/10/RE-Capacity-Growth-in-India-Needs-a-Wholesale-Change-in-Approach-to-Bidding-in-the-FDRE-Tenders.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rodriguesndcapacity, author = {Rodrigues, Neshwin and Vembadi, Shiv}, title = {{RE Capacity Growth in India Needs a Wholesale Change in Approach to Bidding in the FDRE Tenders}}, institution = {Ember}, url = {https://ember-energy.org/app/uploads/2024/10/RE-Capacity-Growth-in-India-Needs-a-Wholesale-Change-in-Approach-to-Bidding-in-the-FDRE-Tenders.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }