The Ministry of New and Renewable Energy (MNRE) has issued new directions to improve how renewable energy is procured in India, aiming to clear delays and make the process more efficient. These decisions were taken after a review meeting held on March 27, 2026, chaired by the Union Minister.
One of the biggest changes is that the Solar Energy Corporation of India (SECI) will now be the only agency allowed to issue new bids for renewable energy projects as an intermediary procurer. Earlier, four agencies were involved in this role, including NTPC Limited, NHPC Limited, and SJVN Limited. These agencies will no longer issue fresh bids but will continue to handle their existing projects and complete pending agreements.
The government has asked these agencies to focus on signing pending Power Sale Agreements (PSAs) and Power Purchase Agreements (PPAs) for projects that have already been awarded. They must review all delayed projects and classify them based on how likely they are to move forward. For projects that are considered very difficult or unlikely to proceed, strict action has been allowed.
In such cases, if developers have not yet applied for grid connectivity through any approved route, agencies can cancel the Letters of Award (LoAs) in a phased manner. This step is expected to remove non-performing projects and free up space for more viable developments.
The ministry has also stressed the need to improve transparency in the bidding process. Agencies have been clearly advised not to engage in post-tender negotiations on tariffs with developers or buyers. This is aimed at maintaining fairness and avoiding delays.
Another important instruction is that agencies must consult with states and end-procurers before issuing any new bids. This will help in understanding actual electricity demand, including peak requirements, and ensure that projects are planned according to real needs. The government also wants agencies to secure commitments from buyers in advance to avoid future delays.
The MNRE has also addressed the use of the “Green Shoe” option, stating that it should not be included in tenders without prior approval from the appropriate regulatory commission.
These new guidelines, issued by Scientist ‘C’ Mohd Azmal Mansoori, show the government’s plan to centralize renewable energy procurement under SECI while ensuring that pending projects are either completed or removed, helping India move faster toward its clean energy goals.
Subscribe to get the latest posts sent to your email.
