NEW DELHI: Union minister for New and Renewable Energy Pralhad Joshi on Tuesday told Parliament that domestic renewable energy implementation agencies (REIAs) have bid out a total of 67.5 GW of renewable energy (RE) capacity since April 2023, and no bids have been cancelled so far.
He was responding to a question in the Rajya Sabha on the cancellation of renewable energy projects. On the declining demand for plain solar projects, Joshi said that distribution companies and end procurers are increasingly preferring battery-integrated solar solutions.
“With the declining cost of solar-plus-storage and dispatchable renewable power, there is a growing preference among distribution companies (discoms) and end procurers for such solutions. This shift has been accompanied by a reduced demand for plain solar power. Solar-plus-storage configurations are also being preferred over wind-solar hybrid projects, particularly due to their ability to supply power during peak demand hours,” Joshi said.
The minister said that the government has directed REIAs to move away from plain solar tenders toward tenders for solar with energy storage, configurations to supply renewable power during peak hours, and tenders capable of providing firm and dispatchable renewable energy (FDRE).
“States are also issuing renewable power procurement tenders and renewable power capacity is also being added in commercial and industrial sectors through Green Energy Open Access/ Captive route. Thus, capacity addition of renewable energy is progressing through multiple pathways and not necessarily only through REIA led bids,” he said.
Mint had earlier reported that the power ministry has asked REIAs to cancel projects for which power sale agreements (PSAs) and power purchase agreements (PPAs) have not been signed. The Ministry of New and Renewable Energy had clarified that any cancellations would be carried out in phases, after exploring all viable options for executing PSAs and PPAs.
Speaking to reporters on 24 November, Joshi said officials had been instructed to assess renewable energy projects lacking signed PSAs and PPAs on a case-by-case basis, with the results expected within 45 days. According to the ministry, about 43 GW of awarded capacity falls into this category. Power developers sign PPAs with procurers or REIAs, who then sign PSAs with power distribution companies (discoms).
The issue is significant, as delays could slow India’s plan to add 50GW of renewable capacity annually to reach 500 GW by 2030 and progress toward its net-zero target by 2070. Many discoms have postponed signing PSAs in anticipation of lower tariffs, holding up the process.
The lag in demand and delays in signing PPAs and PSAs have also slowed bidding this year. A recent report by rating agency Icra Ltd noted that after 47.3 GW of renewable capacity was awarded in FY2024 and 40.6 GW in FY2025, bidding has sharply declined, with only 5.8 GW awarded in the April–October period of the current fiscal year.