Government Re-evaluates 1 GW Wind Energy Tender Amid Rising Steel Costs

The government is reconsidering its plan to launch tenders for 1 GW wind energy projects due to declining interest and rising steel costs. Stakeholder discussions reveal a less enthusiastic response. Meanwhile, the MNRE plans to promote small hydro projects and explore support for solar module manufacturing.

The government is reassessing its strategy for tendering 1 GW of wind energy projects, a decision driven by reduced interest from stakeholders and increasing steel prices, according to a senior official.

Steel, a major component in wind energy infrastructure, has seen costs climb significantly, impacting bidder enthusiasm. The Ministry of New and Renewable Energy (MNRE) is seeking insights from the World Bank and think tanks to devise a roadmap for encouraging wind sector investments.

In addition to exploring wind energy options, the MNRE is working on policies to support small hydro projects and may offer financial aid for manufacturing solar components like ingots and wafers.

(With inputs from agencies.)