Executive Summary:
This document is a response to questions raised in Lok Sabha regarding renewable energy projects awaiting power offtake agreements. As of June 30, 2025, 43,922 MW of renewable power capacity has Letters of Award (LoAs) issued by Renewable Energy Implementing Agencies (REIAs) but lacks signed Power Sale Agreements (PSAs) with End-Procurers. The government is taking steps to expedite PSAs and is continuously examining reforms for successful PSA execution. India has already achieved its 2030 target of 50% non-fossil fuel based installed capacity in June 2025.
Key Points / Main Content:
* **Status of Power Offtake Agreements:**
* 43,922 MW of renewable power capacity lacks signed Power Sale Agreements (PSAs) despite Letters of Award (LoAs) issued by REIAs (SECI, NTPC, NHPC, SJVN) as of June 30, 2025.
* **Government Actions to Expedite PSAs:**
* Pressing states for Renewable Consumption Obligation (RCO) compliance.
* Encouraging REIAs to aggregate demand from DISCOMs and design products accordingly.
* Organizing regional workshops with major renewable energy-procuring States.
* Amending Standard Bidding Guidelines to allow LoA cancellation beyond 12 months from LoA date.
* **Renewable Energy Targets:**
* India achieved its target of 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by June 2025.
* Total installed electricity capacity as of June 30, 2025, is 484.82 GW, with 242.78 GW (50.08%) from non-fossil fuel sources.
* The 242.78 GW capacity from non-fossil fuel sources includes 116.25 GW solar energy, 51.67 GW wind energy, 11.60 GW bio energy, 54.48 GW hydro power, and 8.78 GW nuclear power capacity.
* **Payment Security and PSA Execution:**
* The government is continuously examining and suggesting reforms for successful PSA execution, including provisions for Payment Security Mechanisms.
Impact Analysis:
* **State Distribution Utilities (DISCOMs):**
* Impact: Expected to comply with Renewable Consumption Obligations and engage in Power Sale Agreements.
* Action Required: Actively participate in regional workshops, sign PSAs, and ensure payment security.
* **Renewable Energy Implementing Agencies (REIAs):**
* Impact: Responsible for aggregating demand, designing products, and issuing tenders.
* Action Required: Consider aggregating demand, adhere to bidding guidelines, and work to facilitate PSA signing.
* **Renewable Energy Developers:**
* Impact: Timely project implementation depends on the signing of Power Sale Agreements and payment security.
* Action Required: Monitor PSA progress, engage with DISCOMs and REIAs, and be aware of potential LoA cancellation if PSAs are not signed within 12 months.
Key Entities Referenced
Ministry of New and Renewable Energy: The Indian government ministry responsible for renewable energy.
Renewable Energy Implementing Agencies: Agencies responsible for implementing renewable energy projects.
Solar Energy Corporation of India Limited: A Renewable Energy Implementing Agency.
NTPC Limited: A Renewable Energy Implementing Agency.
NHPC Limited: A Renewable Energy Implementing Agency.
SJVN Limited: A Renewable Energy Implementing Agency.
Energy Conservation Act: The legal framework under which Renewable Consumption Obligation (RCO) is mandated.
United Nations Framework Convention on Climate Change: The international treaty under which India submitted its Nationally Determined Contribution.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 1648
ANSWERED ON 30/07/2025
POWER OFFTAKE AGREEMENTS
1648. ADV DEAN KURIAKOSE
SHRI BALWANT BASWANT WANKHADE
SHRI RAMASAHAYAM RAGHURAM REDDY
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) the details of renewable energy projects currently awaiting long-term power offtake agreements
with state distribution utilities;
(b) the steps being taken by the Government to address the reluctance or delays by state utilities in
signing power purchase agreements which are impacting timely project implementation;
(c) whether the Government has assessed the potential impact of this backlog on the annual renewable
energy deployment target of 50 GW and the country’s 2030 target and if so, the details thereof; and
(d) whether the Government is considering reforms or incentives to ensure more reliable offtake
mechanisms and payment security for renewable energy developers in view of persistent distribution
company (DISCOM) losses and defaults and if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) In respect of tenders issued 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 Intermediary Procurer, as on 30.06.2025, there is 43,922 MW of renewable
power capacity for which Letters of Award (LoAs) have been issued by REIAs but Power Sale
Agreements (PSAs) with End-Procurers have not been signed.
(b) Government has taken various positive steps to expedite the Power Sale Agreements (PSAs) which
include impressing upon States for compliance of Renewable Consumption Obligation (RCO) under
Energy Conservation Act, impressing upon REIAs to consider aggregating demand from DISCOMs/
other consumers and design products accordingly before inviting tenders, organizing regional
workshops with major renewable energy-procuring States to address concerns and accelerate PSA
signing, and amendment in Standard Bidding Guidelines for solar, wind, hybrid and FDRE (Firm &
Dispatchable Renewable Energy) to provide for cancellation of LoA beyond 12 months from the LoA
date.
(c) As a part of the Nationally Determined Contribution (NDC) submitted by India to the Secretariat of
United Nations Framework Convention on Climate Change (UNFCCC), India has committed to achieve
50 percent cumulative electric power installed capacity from non-fossil fuel-based energy resources by
2030. India has achieved this target of having 50% of its cumulative electric power installed capacity
from non-fossil fuel-based sources during June, 2025 i.e. five years ahead of our global commitment.
As per Central Electricity Authority (CEA) reports, India’s total installed electricity capacity as of 30th
June, 2025 stands at 484.82 GW, of which non-fossil fuel based electricity capacity is 242.78 GW i.e.
50.08%. The 242.78 GW capacity from non-fossil fuel sources includes 116.25 GW solar energy, 51.67
GW wind energy, 11.60 GW bio energy, 54.48 GW hydro power, and 8.78 GW nuclear power capacity.
(d) Examination and suggestion on changes/reforms for success in PSA execution, including in respect
of provisions pertaining to Payment Security Mechanism, is a continuous exercise.
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