Lok Sabha Question No. 2762 (UNSTARRED), answered on 2025-12-17
Subject: Challenges in Signing PPAs for Renewable Projects
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Shri Shrirang Appa Chandu Barne, Smt. Bharti Pardhi, Shri Ravindra Dattaram Waikar, Shri Vishaldada Prakashbapu Patil, Shri Naresh Ganpat Mhaske, Dr. Shrikant Eknath Shinde

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 2762

ANSWERED ON 17.12.2025

## CHALLENGES IN SIGNING PPAS FOR RENEWABLE PROJECTS

2762. Shri Shrirang Appa Chandu Barne Smt. Bharti Pardhi Shri Ravindra Dattaram Waikar Shri Vishaldada Prakashbapu Patils Shri Naresh Ganpat Mhaske Dr. Shrikant Eknath Shinde

## Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

- (a)  the  details  of  the  challenges  faced  in  signing  Power  Purchase  Agreements  (PPAs)  for renewable projects along with the steps taken by the Government to address them;
- (b) the manner in which direct Power Purchase Agreements between renewable developers and agencies like National Hydroelectric Power Corporation (NHPC), National Thermal Power Corporation (NTPC) and Solar Energy Corporation  of  India (SECI)  would  help  accelerate capacity addition;
- ( c) the target set for country's non -fossil fuel installed power capacity by the year 2030 and the manner in which these Power Purchase Agreement strategy would contribute to it;
- (d)  the  details  of  Government  and  private  stakeholders  involved  in  implementing  this procurement framework; and
- (e) the manner in which this approach ensures grid reliability and promotes cleaner energy sources?

## ANSWER THE MINISTER OF  STATE  FOR NEW & RENEWABLE ENERGY AND POWER

## (SHRI SHRIPAD YESSO NAIK)

(a) With the declining cost of solar-plus-storage and dispatchable renewable power, there is a growing preference among distribution companies 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. Accordingly, the Government has sensitized  Renewable  Energy  Implementing  Agencies  (REIAs),  namely  Solar  Energy Corporation of India Limited (SECI), NTPC Limited, NHPC Limited and SJVN Limited to move  from  plain  solar  tenders  to  tenders  of  Solar  with  Energy  Storage,  tenders  with configuration to supply renewable power during peak hours and tenders with configuration to supply Firm and Dispatchable Renewable Energy (FDRE).

To facilitate the further execution of Power Purchase Agreements (PPAs) in respect of bids issued by REIAs, the Government has undertaken several proactive measures. These include urging  States  to  comply  with  the  Renewable  Consumption  Obligation  (RCO)  under  the

Energy  Conservation  Act,  and  advising  REIAs  to  aggregate  demand  from  Electricity Distribution  companies  (DISCOMs)  and  other  consumers  before  designing  and  issuing tenders. Regional workshops have been organized with major renewable energy-procuring States to address implementation challenges and accelerate PPA signing.

(b) to (e) Generally Renewable Energy Implementing Agencies (REIAs), namely Solar Energy Corporation of India Limited (SECI), NTPC Limited, NHPC Limited and SJVN Limited, issue tenders as Intermediary Procurers for long-term procurement of renewable power. Renewable Power Developers, which may be from private or public sector, participate in these tenders wherein the successful bidders are decided through transparent competitive bidding process. REIAs sign Power Sale Agreements (PSAs) with End Procurers like Electricity Distribution companies (DISCOMs) and sign back-to-back Power Purchase Agreements (PPAs) with the Renewable  Power  Developers  who  are  the  successful  bidders  under  the  aforesaid  tenders issued by REIAs. Generally, REIAs do not enter into PPAs with Renewable Power Developers unless they have executed Power Sale Agreements with the End Procurers. Normally, after the signing  of  PPA  between  REIA  and  renewable  power  developer,  the  renewable  power developer installs and commissions the renewable power project on Build, Own & Operate (BOO) basis, in compliance to the relevant rules and regulations of the concerned Central / State Government and Government agencies like Central Electricity Authority (CEA), Central Transmission Utility of India Limited (CTUIL), Grid Controller of India Limited (Grid-India), Central/State  Electricity  Regulatory  Commission  (CERC/  SERC),  Regional/  State  Load Dispatch Centers (RLDC/SLDC), etc. which ensures both promotion and deployment of clean energy as well as grid reliability.

Aforesaid mechanism of setting up renewable power projects through long-term renewable power  procurement  by  REIAs  acting  as  intermediary  procurers  has  contributed  greatly  to promoting cleaner energy sources by increasing share of renewable power in installed power generation capacity and as a result India has already achieved 50% of its installed electricity capacity from non-fossil fuel sources, five years ahead of the target set under its Nationally Determined  Contributions  to  the  Paris  Agreement.  As  of  31  October  2025,  the  installed capacity from non-fossil sources stands at about 259 GW, with 31.2 GW added in the current financial year up to October 2025.

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