Page 70 - Construction_Opportunities_December_2024

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INFRASTRUCTURE Approximately 55 GW of renewable energy (RE) capacity awarded As of September 2024, 79 GW of RE capacity is under construction
RENEWABLE ENERGY PPAS FOR 55 GW CAPACITY
REMAIN UNSIGNED
(52 GW solar, 15 GW wind, and 12 GW hybrid), with an additional
95 GW under development. This backlog has prompted Discoms
to delay signing new PPAs as they await clarity on future demand
between April 2022 and October 2024 remains without signed
and evolving technologies.
power purchase agreements (PPAs), highlighting delays driven by
The power ministry’s proposal for 15-year PPAs for transmission
a surge in bids and a mismatch between electricity demand and
the project pipeline.
projects with energy storage systems (ESS) is also influencing
According to a report by JM Financial, delays stem from a sharp
increase in bids—over 50 GW in FY24 compared to 14 GW in
The emergence of new demand drivers like data centers and
FY23 and 17 GW in FY22—alongside challenges such as project Discoms’ hesitancy to commit to traditional 25-year contracts.
the declining costs of battery energy storage systems (BESS) are
execution constraints, a lack of demand alignment with the bid reshaping the supply mix, further complicating decision-making
pipeline, and divergent views on emerging project types like hybrid for Discoms.
and round-the-clock (RTC) solutions. Despite these challenges, JM Financial remains optimistic,
Of the 95 GW of capacity awarded during this period, only 40 suggesting that PPA signing rates could accelerate as Discoms
GW has secured PPAs, while 224 contracts totaling 55 GW remain adapt to changing market conditions and developers strengthen
unsigned. Notably, solar projects face a declining conversion their capabilities through equity capital, policy support, and supply
rate, dropping from 44% in FY23 to 16% in FY25 year-to-date, as chain enhancements. Historically, conversion rates for RE contracts
Discoms prioritize hybrid solutions and storage-integrated projects into PPAs have remained steady at around 48-50%, providing a
over vanilla solar options. precedent for resolution in the current backlog.
India’s RE landscape is grappling with excess capacity during The report highlights that commercial and industrial (C&I)
peak solar hours, a factor that has further discouraged PPA signing demand is emerging as a key driver, with open-access projects
for standalone solar projects. In contrast, wind power projects, gaining traction. Discoms, however, remain cautious about their
though fewer in number, have achieved an 89% conversion rate largest customer segment, uncertain about long-term demand
in FY24, signaling stronger market confidence. trajectories and the shifting landscape of RE technologies.

PATNA METRO TO BEGIN OPERATIONS ON AUGUST 15, implementation of schemes by the Social Welfare department.
2025 Choudhary explained that the supplementary budget would
Patna Metro is set to begin its operations from August 15, 2025, allocate funds for the completion of the first phase of the Patna
Bihar Deputy Chief Minister Samrat Choudhary announced Metro project, which includes two main corridors: the North-South
recently during a presentation in the state assembly. Choudhary, corridor, running from Patna Junction to Danapur, and the East-
who also holds the Finance portfolio, made the announcement West corridor, connecting Patna Sahib with the AIIMS campus.
while presenting the state’s second supplementary budget for the These corridors are expected to provide critical connectivity in
2023-24 fiscal year, which totals `32,506 crore. high-density areas of the city.
The assembly passed the supplementary budget, which will fund In addition to funding the metro project, the supplementary
several key development projects, by a voice vote. The opposition, budget will support the development of various tourism initiatives,
however, staged a walkout over allegations of irregularities in the including the creation of a ‘Tourist Hub’ in Kaimur district, and the
implementation of national programs
like the Sarva Shiksha Abhiyan and the
National Rural Health Mission. Other
infrastructural projects across the state will
also benefit from the funds.
In his address, Social Welfare
Minister Madan Sahni defended the
supplementary demand of `3,028 crore
for the department, emphasizing the state
government’s commitment to improving
the lives of the poor and marginalized.
He criticized the opposition’s walkout,
accusing them of being unsupportive of
the welfare initiatives aimed at protecting
women, children, people with disabilities,
and senior citizens.
The commencement of Patna Metro
operations next year is expected
to significantly improve the city’s
public transport system and enhance
connectivity across key locations.

70 CONSTRUCTION OPPORTUNITIES|DECEMBER 2024