**Executive Summary**
This document is the answer to Unstarred Question No. 685 addressed in Lok Sabha on December 3, 2025, concerning Renewable Energy (RE) capacity. It addresses the issue of stranded renewable energy capacity due to delays in signing purchase agreements and outlines measures to optimize transmission capacity and increase RE utilization. The response was given by the Minister of State for New & Renewable Energy and Power (SHRI SHRIPAD YESSO NAIK).
**Key Points / Main Content**
* **RE Capacity and Power Sale Agreements:**
* As of October 31, 2025, 42,626 MW of renewable power capacity has been awarded Letters of Award (LoAs) by Renewable Energy Implementing Agencies (REIAs) like SECI, NTPC, NHPC, and SJVN, but Power Sale Agreements (PSAs) with End-Procurers have not been signed.
* **Transmission Planning:**
* The Central Electricity Authority (CEA) prepares transmission plans in advance based on the RE potential declared by the Ministry of New & Renewable Energy (MNRE).
* The transmission system is implemented in phases to match generation capacity addition and optimize the transmission system.
* **Battery Energy Storage System (BESS):**
* Approximately 47.2 GW of Battery Energy Storage System (BESS) is considered for planning transmission systems until 2032.
* BESS deployment enables peak shifting, reduces network congestion, and enhances the utilization of transmission assets.
* **Connectivity Regulations:**
* According to the Central Electricity Regulatory Commission (Connectivity and General Network Access to the inter-State Transmission System) (Third Amendment) Regulations, 2025, connectivity will be granted for both solar and non-solar hours.
* This improves transmission system utilization and allows integration of additional RE with co-located BESS without needing extra transmission infrastructure.
**Impact Analysis**
**Renewable Energy Developers**
* **Impact:** Provides clarity on transmission planning and future integration of renewable energy.
* **Action Required:** Developers should align their project development with CEA’s transmission plans and consider co-locating BESS with RE projects.
**State Distribution Utilities**
* **Impact:** Addressed questions regarding the delays in signing power purchase agreements (PPA) that stranded Renewable Energy capacity.
* **Action Required:** Review and expedite the process of signing Power Purchase Agreements (PPAs) to facilitate the grid connection of stranded renewable energy capacity.
**Ministry of New & Renewable Energy (MNRE)**
* **Impact:** MNRE’s RE potential declarations form the basis for CEA’s transmission planning.
* **Action Required:** Continue to accurately forecast RE potential to inform transmission planning.
**Central Electricity Authority (CEA)**
* **Impact:** Tasked with proactive transmission planning based on MNRE declarations.
* **Action Required:** Continue to develop phased transmission plans that accommodate RE generation capacity and BESS.
**Central Electricity Regulatory Commission (CERC)**
* **Impact:** Implemented regulations to ensure connectivity for both solar and non-solar hours.
* **Action Required:** Enforce the "Connectivity and General Network Access to the inter-State Transmission System" (Third Amendment) Regulations, 2025, to improve transmission system utilisation.
Key Entities Referenced
Ministry of New and Renewable Energy: The ministry responsible for renewable energy development, referenced as the source of RE potential.
Central Electricity Regulatory Commission (Connectivity and General Network Access to the inter-State Transmission System) (Third Amendment) Regulations, 2025: Regulations concerning connectivity to the inter-state transmission system, aiming for efficient utilization of the transmission system for both solar and non-solar hours.
Central Electricity Authority: Authority responsible for preparing the transmission plan.
Renewable Energy Implementing Agencies (REIAs): The agencies issuing tenders for renewable energy projects.
Battery Energy Storage System (BESS): Mentioned in context of planning transmission system and enabling peak shifting, reducing network congestion
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 685
ANSWERED ON 03.12.2025
RENEWABLE ENERGY CAPACITY
685. COM. SELVARAJ V
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) whether it is a fact that at least forty gigawatt (GW) of Renewable Energy (RE) capacity
being stranded due to delays in the signing of purchase agreements by the bidding agencies
with state distribution utilities; and
(b) if so, the details thereof and the measures being taken to optimize transmission capacity
and increase the RE capacity utilization?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a)&(b) In respect of tenders issued since April 2023 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
31.10.2025, there is 42,626 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.
Central Electricity Authority (CEA) prepares the transmission plan in advance based on the
Renewable Energy (RE) potential declared by the Ministry of New & Renewable Energy
(MNRE) to provide a clear visibility of transmission system to the RE developers. The
transmission system is implemented in phases commensurate with generation capacity addition
to optimize the transmission system.
Around 47.2 GW of Battery Energy Storage System (BESS) has been considered for planning
of transmission system upto 2032. Deployment of BESS enables peak shifting, reduces network
congestion and improves utilisation of transmission assets, thereby optimising overall
transmission system.
As per Central Electricity Regulatory Commission (Connectivity and General Network Access
to the inter-State Transmission System) (Third Amendment) Regulations, 2025, connectivity
is to be granted for solar and non-solar hours. This will further help in efficient utilization of
the transmission system. This will also enable integration of additional RE with co-located
BESS to the grid without the requirement of additional transmission infrastructure.
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