Power Ministry guidelines for designating a company as REIA

The Ministry of Power has released new guidelines to designate Renewable Energy Implementing Agencies (REIAs). These agencies will handle power procurement from solar, wind, hybrid, and energy storage projects.

To qualify as a REIA, a company must be registered under the Companies Act, 2013. It must also hold a Category-I power trading license from the Central Electricity Regulatory Commission (CERC), have a net worth above Rs 500 crore, and maintain a credit rating of A or higher. Board-level approval is required.

REIAs will manage competitive bidding, sign Power Sale Agreements (PSAs) with project developers, and Power Purchase Agreements (PPAs) with buyers such as utilities or bulk consumers. They must ensure payment security and follow the Tariff-Based Competitive Bidding (TBCB) guidelines. All bidding must take place on CERC-approved e-bidding platforms or proven e-procurement systems.

To avoid conflicts of interest, subsidiaries of REIAs cannot participate in their tenders. The REIA designation is valid for five years. However, the Ministry of Power can cancel the status if the guidelines are violated. In such cases, the REIA must continue honouring its existing contracts.

SECI (Solar Energy Corporation of India), NTPC Ltd, NHPC Ltd, and SJVN Ltd will continue as REIAs under previous government orders.