Lok Sabha Question No. 153 (STARRED), answered on 2025-12-10
Subject: Cancellation of Unviable Renewable Energy Projects
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Shri Hibi Eden

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA STARRED QUESTION NO. 153

ANSWERED ON 10.12.2025

## CANCELLATION OF UNVIABLE RENEWABLE ENERGY PROJECTS

## *153. SHRI HIBI EDEN

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

- (a) whether the Government has recently taken any decision of cancelling unviable renewable energy project contracts due to implementation issues;
- (b) if so, the details thereof;
- (c) whether a tentative list of projects has been prepared for such cancellation;
- (d) if so, the details of the losses suffered by the Government due to such unviable projects;
- (e) whether any decision has been taken for fixing the accountability for such unviable
- projects on the respective companies or Government departments; and
- (f) if so, the details thereof?

## ANSWER

THE MINISTER OF NEW & RENEWABLE ENERGY AND CONSUMER AFFAIRS, & FOOD AND PUBLIC DISTRIBUTION

(SHRI PRALHAD JOSHI)

(a) to (f) A Statement is laid on the Table of the House.

*****

Statement  referred to in reply to parts (a) to (f) of the  Lok  Sabha  Starred Question  No.  153  to  be  answered  on  10 .12.2025  regarding  ' Cancellation  of  Unviable Renewable Energy Projects'

(a) to (f):

- i. 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.
- ii. As on 31 st  October, 2025, Renewable Energy Implementing Agencies (REIAs) of the Ministry of New & Renewable Energy (MNRE), namely Solar Energy Corporation of India  Limited  (SECI),  NTPC  Limited  (NTPC),  NHPC  Limited  (NHPC)  and  SJVN Limited (SJVN), have issued Letters of Award (LoAs) of 67,554 MW in respect of renewable power procurement tenders issued by them since April 2023 and neither any cancellations  have  been  made  after  issuance  of  Letters  of  Award  nor  any  list  for cancellation has been prepared.
- iii. 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.
- iv. 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  the  REIAs  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).
- v. To facilitate  the  further  execution  of  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 Renewable Energy Implementing Agencies (REIAs) to aggregate demand from DISCOMs and other consumers before designing and issuing tenders.  Regional  workshops  have  been  organized  with  major  renewable  energyprocuring States to address implementation challenges and accelerate PPA signing.

*****