India has entered a new phase of its renewable energy strategy, adopting a nuanced, case-by-case approach to ongoing Renewable Energy Implementing Agency bids to ensure balanced progress across developers, power distributors and the national grid.
The government ruled out any blanket cancellations of projects awarded under REIA tenders, even as it reviews nearly 44 gigawatts of capacity for which power sale agreements remain unsigned.
Officials said the move aims to maintain investor confidence while aligning new capacity with grid and market readiness.
“Due diligence is underway to assess each case individually,” the Ministry of New and Renewable Energy said. “Cancellations, if any, will only follow exhaustive efforts to secure PSAs and PPAs.”
Sector Shifts from Expansion to Integration
India’s renewable energy capacity has grown from about 35 GW in 2014 to over 197 GW in 2025, excluding large hydro.
The next stage, the ministry said, focuses not only on expanding capacity but also on integrating renewables into the grid efficiently through storage and market reforms.
The sector is now transitioning from rapid expansion to deeper structural integration, a shift reflecting both market maturity and the complexity of sustaining long-term growth.
REIAs to Categorize Pending Cases
As of Sept. 30, REIAs have issued letters of award for 43,942 MW where PSAs remain unsigned, even as 24,928 MW of new contracts have been finalized since April 2023.
Distribution companies have expressed caution about signing PSAs for projects expected to come online years later.
REIAs have therefore been directed to categorize such cases based on the likelihood of securing agreements, considering factors such as bid configuration, tariff levels, and connectivity timelines.
Only those projects with limited prospects for PSA execution may face phased cancellation. The government clarified that investments in renewable projects typically begin only after PPA execution, minimizing risks of stranded assets.
States Urged to Meet Renewable Obligations
To accelerate PSA signing, the government has urged states to comply with Renewable Consumption Obligations under the Energy Conservation Act. It has also advised REIAs to aggregate demand before issuing tenders and monitor implementation challenges.
Revised bidding guidelines now allow LoAs to be canceled if they remain unexecuted beyond 12 months, ensuring accountability and efficient capacity rollouts.
With falling costs of solar-plus-storage systems, the market is shifting away from plain solar power toward dispatchable renewable solutions. These systems can deliver energy during peak hours, offering greater reliability to utilities.
“Solar-plus-storage projects are now more competitive than wind-solar hybrids,” MNRE said. REIAs have been encouraged to design tenders for Solar + Storage and Firm and Dispatchable Renewable Energy configurations.
Transmission and Market Reforms Accelerate
To support renewable expansion, the government has rolled out a ₹2.4 lakh crore transmission plan aimed at integrating 500 GW of clean energy capacity.
Recent reforms to the General Network Access framework are expected to unlock renewable corridors, reduce congestion, and allow dynamic grid sharing.
India added about 29 GW of renewable capacity in fiscal 2024–25 and another 25 GW in the first half of 2025–26, despite global supply and financing challenges.
The pace reflects strong investor sentiment, driven by growing commercial and industrial demand for clean energy.
The ministry said India’s renewable energy journey is now defined by integration, reliability, and financial discipline.
Aligning growth with grid strength and market stability, the government aims to sustain momentum while ensuring long-term sustainability.
Also Read:
MNRE Revises Waste-to-Energy and Biomass Guidelines to Cut Red Tape
