MNRE takes case-by-case approach on REIA bids

India’s renewable energy expansion is entering a new phase focused on grid integration, storage, and market reform. The Ministry of New and Renewable Energy (MNRE) has decided not to cancel Renewable Energy Implementing Agency (REIA) projects in bulk. Instead, it will assess each case individually to ensure a balanced approach between developers, DISCOMs, and grid capacity.

India’s renewable capacity has grown from 35 GW in 2014 to over 197 GW as of September 2025, excluding large hydro. REIAs have issued Letters of Award (LoAs) for 43,942 MW where Power Sale Agreements (PSAs) remain unsigned, while 24,928 MW of PSAs have been finalized since April 2023. Some DISCOMs are cautious about signing PSAs for projects with distant commissioning timelines.

MNRE has asked REIAs to review these cases based on project configuration, tariff, and connectivity timelines. Only LoAs with minimal prospects for PSA signing may be canceled, and only after exploring all viable options. The ministry clarified that fears of stranded investments are misplaced, as major spending begins only after PPAs are executed.

To speed up PSA finalization, the government is urging states to comply with Renewable Consumption Obligations (RCO) and advising REIAs to aggregate demand before bidding. It has also updated bidding guidelines for solar, wind, hybrid, and firm renewable projects, allowing LoA cancellations if no progress is made within 12 months.

India is also advancing a Rs 2.4 lakh crore transmission plan for 500 GW of renewable capacity and implementing General Network Access (GNA) reforms to ease grid congestion.

Despite supply chain and financing challenges, India added 29 GW of renewable capacity in FY 2024–25 and 25 GW more in the first half of FY 2025–26. Investor interest remains strong as the sector shifts toward integrated, storage-backed capacity growth.