Assessment of stuck renewable projects underway, details in 45 days: Minister

New Delhi: Union minister for new and renewable energy Pralhad Joshi on Monday said officials have been directed to carry out assessment of renewable energy projects for which power sale agreements (PSA) and power purchase agreements (PPA) have not been signed. The assessment will be done on a case-to-case basis and the details of the study are expected within 45 days.

Mint had earlier reported that the power ministry has asked renewable energy implementation agencies to cancel projects for which PSAs and PPAs have not been signed. The ministry of new and renewable energy had on 4 November said that any cancellation would take place in a phased manner only after all viable options for executing power sale and purchase pacts are fully explored.

The ministry of new and renewable energy had earlier this month said that PSAs and PPAs have not been signed for nearly 43.94 GW of awarded capacity.

Spanner in works

The issue is significant, as prolonged delays risk slowing India’s plan to add 50 GW of renewable capacity each year to reach 500GW by 2030 and advance toward its net-zero target by 2070.

Power developers sign PPAs with procurers or the renewable energy implementation agencies (REIA), who further sign PSAs with power distribution companies (discoms).

Many discoms have chosen to wait for tariffs to go lower, rather than sign PSAs, holding up the whole process.

The issue brings major concern for India's ambitious energy transition plans as it aims for 1,800 GW of renewable energy capacity by 2047 and 5,000 GW by 2070.

Slow progress in terms of transmission capacity addition has added to the lack of interest for new green power contracts. In its statement earlier this month, the new and renewable energy ministry had also said that the government, along with stakeholders, is actively exploring mechanisms to optimize transmission capacity and improve the contracting framework.

Guidelines amended

The ministry has also amended the standard bidding guidelines for solar, wind, hybrid, and firm and dispatchable renewable energy (FDRE) to allow for cancellation of letters of award which remain unexecuted beyond 12 months from the date of issuance.

On Monday, Mint reported that amid worry about the adverse impact on investors’ interest in India’s green energy trajectory, state-run Solar Energy Corporation of India (SECI) has taken a strong exception to Rajasthan Urja Vikas and IT Services Limited (RUVITL) reneging on a power sale agreement (PSA).

The pile-up of renewable energy capacity for which agreements have not been signed has also made the REIAs go slow on bidding in the current fiscal year. A recent Icra report said afer a sizeable green power capacity of 47.3 GW awarded in FY24, followed by 40.6 GW in FY2025, the bidding activity has slowed sharply in the current year with only 5.8 GW awarded so far in FY26.

With most of the stuck projects being standalone solar projects, the REIAs are now focussed on bidding out green power projects integrated with energy storage capacity.

During April 2024 to October 2025, REIAs and state discoms have awarded standalone BESS (battery energy storage system) projects aggregating over 20 GWh. Also, the share of round-the-clock (RTC), firm and dispatchable renewable energy (FDRE) and solar plus storage projects remained high at 90% of the total renewable capacity awarded so far this fiscal year.