Power Sector Transition in Gujarat

This article is part of the Global Energy Transition Tracker project sponsored by Global Energy Monitor

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Introduction

The state of Gujarat, India has created a surplus of power since 2009, and produces nearly 12% of the country's renewable energy. Gujarat had plans to increase from 9,670 MW to 30,000 by 2022 — and is poised to surpass this by a wide margin, creating the world's largest solar and wind energy park at 30,000 MW. Set to be completed in 2026, the Gujarat Hybrid Renewable Energy Park would take up 726 square km of land, roughly the size of Singapore. This project is being built in tandem with a desalination plant that would process 26.4 million gallons of water, helping 800,000 people living in the dry region.

However, the area this project would occupy is considered "wasteland" by the government, and locals are concerned about impacts on people and hundreds of species of birds that live in the area. As more of Gujarat's land is designated "wasteland," nomads, farmers, and cattle herders are increasingly driven off their land by even very small solar projects.

A man and his camel near one of India's giant solar farms. Via Mongabay-India.

India as a country has also implemented a tariff system for their energy sector, and this includes requirements for energy providers to have a certain percentage of their supply coming from renewable sources. With this requirement, the world's largest interconnected grid has seen demand for renewables skyrocket.

India's energy consumption has more than doubled since 2000, with around 900 million people gaining access to an electrical connection in less than two decades.

Current System Description

Current Power Capacity Mix

Installed capacity in Gujarat

Energy Source	Installed Capacity	Number of Plants
Coal	17,692 MW	21 (68 units)
Oil and Gas	9,310 MW	19 (28 units)
Hydropower	1,990 MW	4
Solar	10,133.66 MW
Wind	14,653 MW	183 (206 units)

"Final energy consumption per capita in India by state, 2018." Gujarat's energy consumption eclipses that of other Indian states. Via IEA.

Prospective Power Capacity

According to the Renewable Energy Policy, 2023, Gujarat possess 36 GW of potential solar capacity and 143 GW of potential wind.

Announced, Pre-construction, and Construction Capacity in Gujarat, Global Energy Monitor (2023)

Energy Source	Announced	Pre-construction	Construction	Total
Coal	1,200 MW	800 MW	170 MW	2,170 MW
Solar		12,501 MW	927 MW	13,428 MW
Onshore Wind		2,622 MW	476 MW	3,098 MW
Offshore Wind	600 MW			600 MW

Renewable Energy in Gujarat

Renewable Targets

A graph displaying which Indian states reached their 2022 renewable energy targets. Image from Ember via EQ Mag.

National Target: In 2010, the Jawaharlal Nehru National Solar Mission (JNNSM) - an initiative intended to build and bolster India’s solar industry - established a target of 20 GW of grid-connected solar by 2022, a goal which was reached in 2018. This target was raised in 2015 to 100 GW of solar by 2022, which would include 40 GW of rooftop solar. While this goal was not met, utility-scale solar reached 70.1 GW by June 2023. Rooftop solar installations fell far short of the target and only reached 8.8 GW by the end of 2022. In 2022, India raised its renewable energy targets to 500 GW by 2030, of which 280 GW will come from solar generation.

India has surpassed its commitment made at the COP21 - Paris Summit by already meeting 40% of its power capacity from non-fossil fuels - almost nine years ahead of its commitment.

Nationally Determined Contributions (NDC): 50% of India's power needs to be coming from non-fossil sources by 2030.

Prime Minister Narendra Modi set the goal for a net zero economy in India by 2070.

Renewable Energy Target (RES): by August 2022, India as a whole had reached 66% of its 2022 renewable energy target; the country would need to build renewables 2.5 times faster to meet its 2030 goal.

Prime Minister Narendra Modi has announced more ambitious targets for 2030, including installing 500 GW of renewable energy capacity, reducing the emissions intensity of its economy by 45%, and reducing a billion tonnes of CO2.

In 2023, the New & Renewable Energy Secretary Bhupinder Singh Bhalla mentioned that India is expected to add 25GW of renewable energy in 2023, and the government is planning to raise the annual increase to 40GW in 2024, aiming for 50GW for the next five year. Among the newly added capacity, at least 10GW will come from wind energy.

State and Local Targets: In October 2023, the Government of Gujarat released the Gujarat Renewable Energy Policy - 2023, which outlines the State's renewable energy plans and will remain in effect through 2028. Through this policy, the State aims to reach 100 GW of renewable energy by 2030, which may include solar (ground-mounted, rooftop, floating, canal top), wind (rooftop, utility-scale), and projects which combine both generation types. The Government of Gujarat also aims to attract investments of approximately INR ₹5 lakh crores. Additionally, each Indian state has a Renewable Energy target (RES), and Gujarat is one of four states to have exceeded its target.

Ahmedabad, Gujarat, the largest city in the state, set a target in 2022 to reduce carbon emissions by 139 million tonnes by 2030. To do this, over the course of 8 years the state government has announced plans to build 68,000 MW of renewable energy.

Progress toward clean energy targets: Analyses conducted in early 2024 predict that India is on-track to meet its 2030 clean energy goals. An estimated 412 GW of wind, solar, and hydroelectric power will be online by 2030, while fossil fuels are expected to drop from 57% to 36-41% of the country's energy share by the end of the decade. Financing remains the largest challenge to these goals.

Major Renewable Projects

Major (500MW+) in-development wind and solar projects in Gujarat, India

Project	Capacity	Status
Gujarat Hybrid Renewable Energy Park	30,000 MW	Construction
Kutchh Manufacturing (Adani Group) solar farm	750 MW	Pre-construction
Dholera Solar Park (Phase 1 and 2)	4,300 MW	Pre-construction
Kutch (NTPC) Solar Park	4,750 MW	Pre-Construction
Gujarat Greenshore wind farm	600 MW	Announced

In addition, India is nuclear capable with three units (1,140 MW) operating at the Kakrapar nuclear power plant in Gujarat and a fourth unit (700 MW) still under development. Nuclear energy has reached about 3% of India's generating capacity mix and is expected to expand to 9% by 2047.

Potential impacts from renewable expansion

Wind: Wind projects are exempt from requirements to complete an Environmental Impact Assessment (EIA), while other renewable energies, aside from small-scale hydropower, still require one.

Solar: The Gujarat Solar Park, India’s first utility-scale solar park, promised to bring Charanka clean drinking water, free electricity, irrigation, and 1,000 permanent jobs. 10 years after these promises were made, 60 locals are employed, and security guards are working 12 hour shifts (against the 8 hour mandate) while making little pay. Women have not received jobs.

The government of India has a reputation for finding ways to avoid buying land for these projects, or taking it through eminent domain. The Charanka Solar Park, a 216 MW project in the state that was part of the "Gujarat Solar Power Policy 2009," was the largest solar project in Asia at the time of its construction, requiring a vast area of land. Through the policy, the park was on the edge of a unique salt marsh ecosystem in the Great Rann of Kutch and Little Rann of Kutch. In addition, it is land that nomadic Rabari peoples use regularly for their livestock herds, but do not own.

Fossil Fuel in Gujarat

Fossil Resources and Retirement

Coal Mines: There are eight active coal mines in Gujarat (see table below). The expansion plan of the existing Bhavnagar Lignite Mine, is the only proposed coal mine project in Gujarat.

Status	Name of Coal Mine	Mine Size(Km2)	Mining Method	Annual Coal Production (Mt)	Workforce
Operating	Bhavnagar Lignite Mine, Phase 1	36.72	Open Pit	1.64	346
Proposed	Bhavnagar Lignite Mine, Expansion		Open Pit		346
Operating	Khadsaliya Lignite Mine		Open Pit	0.17	370
Operating	Mangrol Valia Coal Mine	20.8	Open Pit	2.53	586
Operating	Mata No Madh Lignite Coal Mine		Open Pit	3.48	604
Operating	Rajpardi Lignite Mine	3.85	Open Pit	0.71	397
Operating	Tadkeshwar Lignite Mine		Open Pit	0.9	390
Operating	Umarsar Lignite Mine	21.86	Open Pit	1.82	449
Active	Vastan Lignite Mine	15.36	Open Pit	0.52	379
Closed	Panandhro Lignite Mine	17.19	Open Pit	0.71

Oil and Gas Extraction: India has 49 operational oil, gas, and mixed fields, with one in Gujarat (Ankleshwar Oil and Gas Block). Gujarat is the second-largest oil-producing region in India. Additionally, The Jamnagar Refinery in Gujarat is the largest oil refinery in the world, with a capacity of approximately 1,240,000 barrels per day. Moreover, Nayara Energy's oil refinery in Vadinar, Gujarat will be expanded in the coming years. Further, GSPC and NGEL recently signed a Memorandum of Understanding to advance blending gas networks with green hydrogen.

Cancellation and Retirement: The state government of Gujarat cancelled a 4 GW coal plant in 2017 due to an existing surplus of energy and the need to transition away from fossil fuels. The Australian government, meanwhile, asserted that it was their "moral obligation" to provide poorer countries like India with coal — though there was no real demand for it or the massive coal mines that would have supplied it. Between 2016 and 2021, India as a whole retired 56 coal-based plants, and had plans to shutter 47 more. At the same time, India is set to construct around 100 more mines in coming years.

Overview of current fossil fuel impacts

Health impacts and mortality:

Premature deaths per year due to air pollution in India reached 1.2 million, and are expected to rise to 1.4 million in 2040 if India policies and development continue to progress as they are now. If the country shifted to meet the more sustainable goals, this would decrease to an estimated 0.6 million.

As the climate warms and India continues to experience crippling heat waves, demand for air conditioning will increase, and is expected to increase six-fold by 2040.

According to estimates from the Air Quality Life Index, the life expectancy of the average person in India would increase by 5.26 years if fine particulate matter pollution met World Health Organization guidelines. In Gujarat, the average citizen's life expectancy would increase by 3.15 years.

Coal:

Impacts of new coal mines on India; from Global Energy Monitor.

There has been intense grassroots opposition to coal and coal mining in India, where farmers and fishers in particular face environmental destruction and state violence. Sometimes this leads to the murder, injury, and incarceration of protestors, and often times it leads to projects getting cancelled, with as much as a 67% success rate in the country.

Gujarat is no exception: In May of 2018, police arrested over 500 farmers protesting against the establishment of three proposed lignite mines to supply the part-built 500 MW Bhavnagar power station in Gujarat. An estimated 1,000 people gathered to protest against Gujarat Power Corporation Limited’s (GPCL) occupation of 1415 hectares of land it bought before 2005 but which was subsequently reoccupied and farmed by displaced villagers. While Bhavnagar is in operation, Bhadreshwar and parts of Tata Mundra Ultra Mega Power Project in the state were cancelled.

For more information, visit GEM's Opposition to Coal in India page.

In addition, India's rampant coal mine buildout has been proven unnecessary through analysis of all existing mines. GEM's data shows that India's current mines are chronically underutilized, and create vast quantities of methane.

Oil and Gas:

India is in the midst of having pipelines to import fracked gas into the country implemented, which is expected to lower the price of gas which has historically come through LNG imports. However, by 2040 there's likely to be a scarcity in supply of pipeline gas, with India's reserves drying up, which would drive prices up by double.

Social and Environmental Impacts

India overall has seen robust grassroots efforts in protest of coal activities, due in large part to coal’s negative impacts on land use, farmlands, and water losses. In Gujarat specifically, in 2018, police arrested over 500 farmers protesting the establishment of three proposed lignite mines intended to supply the partially built 500 MW Bhavnagar power station in Gujarat. An estimated 1,000 people gathered to protest against Gujarat Power Corporation Limited’s (GPCL) occupation of 1,415 hectares of land that had been purchased before 2005 but had been subsequently reoccupied and farmed by displaced villagers. While Bhavnagar is operation, Bhadreshwar and parts of Tata Mundra Ultra Mega Power Project in the state were cancelled.

Moreover, the Charanaka Solar Park sits on the edge of a unique salt marsh ecosystem in the Great Rann of Kutch and Little Rann of Kutch, on land that nomadic Rabari peoples use regularly for their livestock herds.

Employment

Current employment by sector (figures from 2021 data)

Yearly and cumulative number of people trained to work in the solar field by SCGJ. From NRDC India.

Hydropower: 413,728 jobs for all of India

Solar PV: 217,000 jobs for all of India

Biogas: 85,000 jobs for all of India

Solid Biomass: 58,000 jobs for all of India

Liquid Biofuels: 35,055 jobs for all of India

Wind: 35,400 jobs for all of India

Solar heating/cooling: 19,000 jobs for all of India

CSP: No jobs

Geothermal: No jobs

Coal Mines: 3,521 jobs in operating coal mines, 346 in proposed coal mines

(One thesis from the University of British Columbia shows the approximate workforce for direct and indirect jobs to coal mines and coal power plants in Gujarat could be up to 76,896. - Further detailed needed to be confirmed.)

Prospective employment from renewable energy sector

While jobs in wind energy have stagnated in India, employment in the solar sector has increased dramatically. Solar workforce training certifications from the Skill Council for Green Jobs have risen from less than 10,000 in 2017, to over 100,000 in 2022. In FY22, only 600 new workers were employed in wind, compared to 52,100 in solar.

According to a 2019 study by the International Climate Initiative, Federal Ministry of the Environment, and other organizations, up to 3.5 million people can be employed in the Indian power sector by 2050, with over 3.2 million of those jobs in the renewables sector. In the most extreme scenario played out by this study, the renewable energy sector could employ five times more people by 2050 than the entire Indian fossil-fuel sector employed in 2019.

Between 143,000 and 250,000 skilled experts and 410,000-850,000 lower level workers would be needed for the solar sector in the coming years. Meanwhile, due to increased mechanization in coal mining 105,000 jobs were lost between 2000 and 2015.

Supply Chain

In early 2024, Grew Energy signed a Memorandum of Understanding to establish a solar component manufacturing facility in Dholera, Gujarat. The plant is expected to be operational in 2025 and employ more than 1,600 individuals. This facility will have a manufacturing capacity of 2.8 GW, and an additional announcement for another 3.2 GW facility in Dholera brings the town's capabilities to over 6 GW.

Additionally, Suzlon Group, which was founded in Gujarat, is a manufacturer of wind turbine components that will be used in developments like KP Group's 193 MW wind-solar hybrid project.

Land availability

According to the International Energy Agency’s 2023 report “Net Zero Roadmap: A Global Pathway to Keep the 1.5 °C Goal in Reach,” an average utility-scale solar PV project of 100 MW generally occupies from 1 km² to 3 km², while a 100 MW onshore wind turbine project generally covers from 5 km² to 30 km². Based on these estimates, the current prospective 23,115 MW of utility-scale solar will require between 231.15 km² and 693.45 km², and 5,616 MW of utility-scale wind will require between 280.8 km² and 1,684.8 km².

Under 2023’s Gujarat Renewable Energy Policy, approximately 4 lakh acres of land is expected to be used for renewable energy development.

"Wasteland":

The Gujarat Hybrid Renewable Energy Park has been allotted 60,000 hectares — roughly the size of Singapore or Greater Mumbai.

Gujarat's Government has also allotted 6,024 hectares of “wasteland" for a 9,000 MW project. The proposed park will be built on a plot of land in the Little Rann Of Kutch district. In 2019, the state authorities started to assess the area for the production of electricity from renewable sources like photovoltaic or wind.

Elsewhere in India, the story is similar: In the state of Karnataka to the south, the Pavagada Ultra Mega Solar Park covers twenty square miles, and is over 2000 MW in capacity. 22% of the energy for the entire state of Karnataka is generated there, but none of the that electricity goes directly to the local communities whose farmland has been turned into solar installations. Generations-old land agreements were ignored because the farmers using the land had no deed, and so weren't eligible for compensation even when their land was taken. The developers of Pavagada were not required to study the social or environmental impacts of the work, though the World Bank commissioned two studies that predicted profound impacts on the land an its people; some would have assured income through leasing their land, but others, particularly women, would lose employment on local farms.

Use of canals as space:

In Gujarat, there are over 80,000km of canals; according to Gujarat State Electricity Corporation, if 30% of this were converted to solar, 18,000MW of power could be produced, saving 90,000 acres of land. Some projects like this have already been built, and the solar panels, cooled by the water below them, gain a small amount of efficiency. However, maintaining long stretches of solar panels can be challenging.

Potential of closed coal mines:

The closed mines could be the potential locations for renewable projects. Currently, one coal mine, Panandhro Lignite Mine, is closed with 17.19 km2 of space available for repurposing.

Symbolic Importance

India boasts the largest interconnected grid on the planet, but it has not been a benefit to everyone. Farmers, nomads, and wildlife have been deeply impacted by massive projects (both renewable and fossil). So as states like Gujarat promote and continue to build multi-gigawatt projects and advertise their business friendliness in their urban centers, it's important to also consider effects on rural people. (And in the context of India, those in lower social castes are even more vulnerable.)

The Modhera "Solar Village" in Gujarat, while only 6 MW, has displaced and impoverished cattle herders in nearby Sujanpura. The town, famous for its sun temple, is drawing tourists and developers to the "new sun temple based on solar energy." While Modhera has been able to move away from coal dependency, herders now need to pay for hay to feed their livestock rather than graze on the land now occupied by solar, and have had to sell cattle due to the lack of grazing. At least one farmer was so distraught he considered suicide.

For wildlife in Gujarat, energy projects that take up tens of thousands of hectares are a threat. The area of Kutch in the state is the site of several large scale projects, and the area of desert being used has been identified as "wasteland" despite having unique ecosystems. For for hundreds of species of bird in particular, this land is vital. Even flamingos, emblems of the state of Gujarat, risk colliding with powerlines and other dangers from these projects.

Gujarat, a stronghold of natural gas energy, holds the distinction of being the first state in the country to establish its own gas transmission line. Among India's 23 operational oil and gas fields, six are located in Gujarat. The state has also witnessed grassroots opposition to coal mining and generation due to their adverse impacts on land use, farmlands, and water resources.

Simultaneously, Gujarat plays a pivotal role in India's renewable energy landscape. Since 2009, it has consistently generated surplus power, contributing nearly 12% of the nation's renewable energy. Gujarat had achieved 44% of its installed capacity from renewable sources by 2023. The state is committed to reaching 80 GW of renewable energy by 2030. Gujarat's energy transition journey offers valuable lessons in reducing fossil fuel dependence and establishing itself as a regional renewable energy hub.

Flamingos and their chicks in Gujarat, India. Photo by Nirav Bhatt for Flamingo Gujarat Vol. 3.

Permitting

Electricity projects do not require a generation license, but permits, consents, and approvals are required for acquiring land, ensuring environmental responsibility and compliance with protection measures, corporate and labor compliance, and approvals to construct and operate the power plant. Additional permissions are required for nuclear power and hydropower greater than 25 MW.

Renewable energy projects, like most major projects in India, require environmental clearance. To receive clearance, a developer must complete an Environmental Impact Assessment (EIA) which outlines the potential effects that the project may have on the surrounding environment, as well as mitigation measures that will be undertaken. Any project larger than 1 MW must undergo an EIA, with larger developments requiring more rigorous analysis and wind/solar requiring additional wildlife assessments. The clearance process is time-intensive, often delayed, and bureaucratically complicated.

Environmental clearances require the following steps:

1. Site identification
2. Environmental Impact Assessment completion, which is reviewed by relevant state agencies like the State Pollution Control Board and State Forest Department
3. Public hearing, with a hearing committee comprised of the District Collector; officials from the district development body, State Pollution Control Board, Department of Environment and Forest, and Taluka and Gram Panchayat; senior citizens of the district, and others.
4. Application and approval (if applicable) of environmental clearance. Approval is administered by an Appraisal Committee.
5. Requisite documents needed to finalize compliance must be filed within 90 days of approval.

Similarly, land acquisition must be completed carefully with consideration of landowner compensation and agency approvals, both of which can delay development.

The Gujarat Electricity Regulatory Commission (GERC) is responsible for administering licenses for the transmission and distribution of electricity. GERC is also tasked with promoting electricity, enforcing standards, and adjudicating conflicts between licensees while providing support and recommendations to the Government of Gujarat. GERC must collaborate with India's Central Electricity Regulatory Commission to ensure efficient and economically advantageous delivery of electricity.

Governmental information

Governmental Policies and Papers

Government of India under Prime Minister Narendra Modi:

The Modi administration has spent the past nine years overhauling India's energy sector. Between 2014 and 2022 India added 1,69,110 MW of generation capacity, which exceeds the country's maximum demand. The administration also takes credit for 1,66,080 Circuit Kilometers of transmission lines, integrating the countries grids into one consolidated grid-- the largest in the world.

Gujarat-Specific Policies:

There are a number of initiatives and incentives in place to promote renewable energy in Gujarat. These include subsidies for manufacturers, provisions for companies willing to relocate or invest in the state, and fiscal incentives to train people in these technologies. Wind and wind-solar hybrids can also be exempt from demand cuts.

Gujarat Solar Power Policy 2009: a state level policy that aims to create solar power projects developed through a public-private partnership arrangement where the state acquires and designates land for the parks and expedites planning procedures for private developers to develop plots within them; in all the cases, developers sell the power produced to the state at an agreed tariff.

Gujarat Wind-Solar Hybrid Power Policy 2018: Provides a framework for the promotion of large, grid-connected wind-solar PV systems and encourages new technologies to further these operations, such as storage.

The Gujarat Renewable Energy Policy 2023: The state government expects to generate 50% of the energy from renewables, and attract investment of nearly Rs 5 lakh crore in the renewable energy sector with the help of this policy. An estimated 36 GW of solar and 143 GW of wind capacity will be harnessed under the policy. Ground-mounted solar, rooftop solar, floating solar, canal top solar as well as wind, rooftop wind, and wind-solar hybrid projects will be covered under the policy, and approximately 4 lakh acres of land are expected to be utilized for renewable energy plants.

India-Wide Policies:

The Electricity Act, 2003: Provides the enabling legal framework for promotion of Renewable Sources of energy by the State Electricity Regulatory Commissions (SERCs) through tariffs for energy supplies.

National Electricity Policy (NEP): Expresses the need for fully exploiting non-conventional energy sources and the need for technology development and R&D, as well as conditions to promote these technologies. Policies include power purchases by distribution companies through competitive bidding processes.

Tariff Policy 2016: Elaborates the role of Regulatory Commissions, the mechanism for promoting renewable energy, the time-frame for Implementation. Also fixes a minimum percentage of total electricity consumption from each distribution licensee that must be from renewables and waste-to-energy plants (or related Renewable Energy Credits or RECs).

The Renewable Purchase Obligation (RPO) is meant to achieve the target of solar energy equivalent to 8% of the total energy consumption as envisaged by the Government of India. RPO percentage for FY 2022-23, FY 2023-24, and FY 2024-25 is set at 17%, 18.7%, and 20.7%, respectively.

Jawaharlal Nehru National Solar Mission (NSM): In 2010, this government program was initiated under the National Action Plan on Climate Change (NAPCC) with the goal of generating 20 GW of grid-connected solar PV, as well as 2 GW of off-grid PV. The proposed time line is: Phase-I (1000MW): 2010-12, Phase-II (7000MW): 2013-17, and Phase-III (20,000MW): 2018- 2022.

Relevant political coalitions

India and France:

The fifth Assembly of the International Solar Alliance (ISA) was held on 18.10.2022. India and France have been re-elected as the President and Co-President of the ISA Assembly for a third consecutive two-year term for the period of October 2022 to October 2024.

India and the United States:

In 2009, the Partnership to Advance Clean Energy (PACE) was launched. In 2014 and 2015, then President Barack Obama and Prime Minister Modi met to announce priority initiatives.

Transmission and Grid Capacity

Current transmission resources

The current power grid in Gujarat, India. From GETCO.

India: In 2023, the Indian Transmission network includes 4,68,977 ckm of transmission lines (220kV and above voltage level) and 11,58,875 MVA of the transformation capacity in substations (220kV and above voltage level). The inter-regional capacity of the National Grid is 1,12,250 MW. Under the ‘Gati Shakti Master Plan’, the power transmission network is planned to be expanded from 4,25,500 circuit kilometer (existing as on 31.05.2020) to 4,54,200 circuit kilometer (ckm) by 2024-25 resulting in addition of nearly 28,700 ckm.

Gujarat: Gujarat Energy Transmission Corporation Ltd (GETCO) was created in 1999 to build, operate, and maintain the state transmission network. As of 2022, Gujarat’s grid is made up of 70,378 circuit kilometers of transmission lines and 2,246 substations, with 138,646 MVA in transformation capacity. Substation availability is 99.91%.

New transmission needed for renewables

In areas like Kutch, the government has made plans to double transmission capacity to 30 MW in the wake of multitudes of applications from renewable energy companies, totaling approximately 15 GW.

Sterlite Power commissioned the 5 GW Lakadia-Vadodara Transmission Project Ltd. (LVTPL), which would bring renewable energy from Bhuj and Kutch to the national grid. With investments of USD $244.4 million, 812 towers across 335 kilometers will comprise the largest transmission corridor build in India thus far. This infrastructure would be critical for the Gujarat Hybrid Renewable Energy Park.

Another power "expressway" is being built from Mumbai to Gujarat, the Mumbai Urja corridor. This would bring 2,000 MW of solar and wind energy from Kutch and Vadodara to Maharashtra. Mumbai, the commercial capital of India, can't produce enough power on its own, so projects like these are needed to avoid grid failures and blackouts. This project is expected to fulfill up to 40% of Mumbai's electricity demand.

Similarly, Khavda-Bhuj Transmission Limited (KBTL) recently filed an application for a second transmission license to evacuate 7 GW of electricity, in addition to the 3 GW of the project's first phase. Despite KBTL lacking regulatory eligibility criteria, the Commission exercised its power to relax regulations, allowing KBTL to proceed with soliciting public feedback. The total project cost is estimated at ₹216 crore.

The Central Electricity Authority (CEA) is working with the Central Transmission Utility (CTU) to develop a transmission system to for an initial 10 GW offshore wind transmission capacity, with 5 GW allocated to both the Gujarat and Tamil Nadu coasts.

Social and environmental impacts of new transmission

In 2022 it was announced that landholders in Gujarat would receive 15% (double the previous amount) for the use of their land for transmission lines. It is not made clear what kind of compensation, if any, non-landowners would receive.

Ownership

Major owners of current fossil capacity

Adani: In addition to part of the Gujarat Hybrid Renewable Energy Park, Adani (the largest private thermal power produce in India) has two powerplants in Gujarat; it owns the 4620 MW Mundra Thermal Power Project coal plant, as well as the 40 MW Bitta solar farm (which has 115.5 times less capacity than the coal plant.)

Gujarat Industries Power Company Ltd.: Owns Vadodara Station-I and II for gas plants, Surat Lignite Power Plant for coal, and several solar power plants totaling 262 MW.

Gujarat Urja Vikas Nigam, the parent company of the Gujarat State Electricity Corporation Ltd, owns approximately 5,940 of coal power capacity. Their major projects include the Bhavnagar power station, Gandhinagar Thermal Power Station, Kutch GSECL power station, Sikka Thermal Power Station, Ukai Thermal Power Station, and Wanakbori Thermal Power Station.

Torrent Power: Owns the 1200 MW DGEN Mega Power Project, the 1147.5 MW SUGEN project, the 382.5 MW UNOSUGEN, and the 362 MW AMGEN project in Gujarat. In addition, Torrent owns 10 wind and solar projects, totaling 786.5 MW.

Nuclear Power Corporation Of India Ltd.: Owns the only nuclear plant in Gujarat, Kakrapar nuclear power plant, with a capacity of 1840 MW.

Major owners of prospective renewables

Extra large projects in India frequently have multiple developers. The Gujarat Hybrid Renewable Energy Park, for instance, has six so far:

-Adani Green Energy has been allocated 19,000 hectares for wind and solar

-Sarjan Realties gets 9,500 hectares for wind and solar

-National Thermal Power Corporation (NTPC) gets 9,500 hectares for wind and solar

-Gujarat State Electricity Corporation gets 6,650 hectares for wind and solar

-Gujarat Industries Power Company Limited gets 4,750 for wind and solar

-Soler Energy Corporation of India (SECI) will take 23,000 hectares for solar only

Each MW requires up to two hectares of space.

NTPC Ltd.: This company has plans to build other large projects totaling 5,170 MW of solar, most of which will be the 4750 MW Kutch (NTPC) Solar Park.

Finance

Potential providers of wind/solar finance

In early 2024, President Modi approved a government investment of ₹15,336 crore to support electrification of Particularly Vulnerable Tribal Groups in 18 states. The goal is to use solar to electrify one lakh off-grid households from 2023 through 2026. The Central Government's investment is matched by ₹8,768 crore provided by states.

Eight modes for receiving Central Financial Assistance from India's MNRE. Via MNRE.

Ministry of New and Renewable Energy (MNRE):

There are eight modes by which solar parks are developed with Central Financial Assistance (CFA) from the MNRE, as shown in the table to the left.

For wind power, similar government incentives and programs exist including (but not limited to): Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route, Waiver of Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025, setting up of Project Development Cell for attracting and facilitating investments, standard bidding guidelines for tariff-based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects, concessional custom duty exemption on certain components required for manufacturing of wind electric generators, and Generation Based Incentive (GBI) is being provided to the wind projects commissioned on or before 31st March 2017.

Finance and related initiatives in Gujarat

In 2019, SB Energy, an affiliate of Soft Bank of Japan, announced to invest USD $4 billion or Rs 30,000 crore in the renewable energy sector in Gujarat. The money will be invested on solar, wind, and other unconventional renewable energy development

In 2022, the state-owned Indian Renewable Energy Development Agency (IREDA) sanctioned a total of Rs. 121,061 crores (~USD $14.5 billion), of which Rs. 8,553 crores (~USD $1.04 billion) were allocated for 190 RE project accounts in Gujarat. The company has disbursed approximately Rs. 3,965 crores (~USD $480 million) in Gujarat, out of a cumulative loan disbursement of Rs. 79,994 crores (~USD $9.6 billion) in the country.

IREDA is also planning to set up an office in the Gujarat International Finance Tec-City (also known as GIFT City) in Gandhinagar district, Gujarat. This plan was announced in mid-2023, and the purpose of the office is to finance renewable energy projects in foreign currency, allowing the IREDA to avoid foreign exchange hedging costs.

Other

Multi-billionaire Gautam Adani announced a commitment of ₹2 lakh crore (~USD 25 billion) to Gujarat to increase job opportunities and expand renewable energy development. The investment will support construction of a 30-GW green energy park in Khavda, Kutch, Gujarat and aims to create more than 100,000 local jobs.