Lok Sabha Question No. 2026 (UNSTARRED), answered on 2026-02-11
Subject: Tender of Renewable Energy Projects
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Shri K E Prakash

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 2026

ANSWERED ON 11.02.2026

## TENDER OF RENEWABLE ENERGY PROJECTS

## 2026. SHRI K E PRAKASH

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

- (a)  the  reasons  for  the  Government to  continue to aggressively tender  new renewable projects (targeting-50  GW  a  year)  despite  clear  signals  of  weak  grid-connectivity,  Power  Purchase Agreements (PPAs) and evacuation capacity;
- (b)  the  details  of  mechanisms  put  in  place  by  the  Government  to  assess  PPA-viability  and evacuation  infrastructure  readiness  before  issuing  tenders  along  with  the  reasons  for  those mechanisms apparently inadequate, causing mismatch in the supply and demand; and
- (c) the manner in which the Government justify its sudden reversal of strategy in slowing down renewable tenders and cancelling projects due to oversupply and connectivity issues?

## ANSWER

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

## (SHRI SHRIPAD YESSO NAIK)

(a) to (c) As per Central Electricity Authority's Load Generation Balance Report 2025 -26, t he electricity requirement in the country has consistently increased, rising from around 1,275 billion units in Financial Year (FY) 2020-21 to around 1,695  billion units in FY 2024-25. As of 31 December  2025,  India's  installed  capacity  from  non-fossil  sources  stands  at  about  266  GW. Government of India is working towards achieving 500 GW of installed electricity capacity from non-fossil sources by 2030.

As on 31st December, 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)  out of which Power Purchase Agreements (PPAs) have been signed for around 24 GW.

The recent issuance of tenders by REIAs reflects evolving market conditions rather than a reversal of  policy  objectives.  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.

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.

Central  Electricity Authority  (CEA)  prepares  the  transmission  plan  in  advance  based  on  the Renewable Energy (RE) potential declared by the Ministry of New & Renewable Energy (MNRE) to provide a clear visibility of transmission system to the RE developers. The transmission system is  implemented  in  phases  commensurate  with  generation  capacity  addition  to  optimize  the transmission system. A transmission plan has been prepared till 2032 to augment transmission infrastructure needed for projected renewable energy (RE). Further, intrastate transmission lines and sub-station capacity are supported under the Green Energy Corridor Scheme for evacuation of renewable power.

In  addition,  under  the  Central  Electricity  Regulatory  Commission  (Connectivity  and  General Network Access to the inter-State Transmission System) (Third Amendment) Regulations, 2025, connectivity  is  granted  for  solar  and  non-solar  hours,  enabling  more  efficient  utilisation  of transmission  infrastructure  and  facilitating  integration  of  renewable  energy  projects,  including those with co-located battery energy storage systems, without proportionate additional transmission capacity.

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