High Tariffs, Buyer Exit Trigger 11.4 GW RE Tender Cancellations, Says Minister

India has cancelled renewable energy procurement tenders totaling 11,400 MW, citing multiple challenges such as insufficient participation, high discovered tariffs, and withdrawal by end-procurers.

The Union Minister of New and Renewable Energy (MNRE), Shripad Yesso Naik, in a written reply before the parliament, said, “In respect of tenders issued since April 01, 2023, by Renewable Energy Implementing Agencies (REIAs), namely Solar Energy Corporation of India Limited (SECI), NTPC Limited (NTPC), NHPC Limited (NHPC), and SJVN Limited (SJVN), as on 30.06.2025, aggregate 11,400 MW of renewable power procurement tenders have been cancelled.”  

Issue of Unsigned PSA

Shripad Yesso Naik further explained that REIAs have signed 22,683 MW Power Sale Agreements (PSAs) in renewable energy procurement bids since April 2023. Additionally, he mentioned that REIAs have issued 43,922 MW Letters of Award (LoAs) for renewable power capacity but haven't signed the Power Sale Agreements (PSAs) with end-end-procurers.

He attributed the quantum of unsigned PSAs primarily to a significant rise in the quantity of renewable power that has been bid out in recent years. He further interlinked the issuance of bids by REIAs for renewable power projects connected to the Inter-State Transmission System (ISTS) and transmission planning for ISTS.  

The Indian government has also laid out guidelines to discourage the misalignment in bid issuance and transmission readiness, and consequently resolve issues, including delays in PSA signing. Furthermore, the minister stated that the government has set Standard Bidding Guidelines for Solar, Wind, Hybrid, and Firm & Dispatchable Renewable Energy (FDRE) as amended on February 12, 2025, to provide for cancellation of LoA after 12 months from the LoA date.

Tenders See Lower Awarded Capacities

In recent years, several renewable energy tenders have seen developers awarded less capacity than what was originally tendered by Renewable Energy Implementing Agencies (REIAs). In December 2024, for instance, 600 MW remained unawarded in a 1.2 GW solar tender issued by SECI. Similarly, in another 1.2 GW solar tender by NTPC, only 916 MW was awarded, leaving 284 MW unallocated.