The Ministry of New and Renewable Energy (MNRE) has designated the Solar Energy Corporation of India (SECI) as the sole renewable energy implementing agency (REIA) for issuing renewable energy procurement bids as an intermediary procurer.

However, other REIAs will continue to manage and fulfill obligations related to bids already issued by them, including ensuring the signing of power sale agreements (PSAs) and power purchase agreements (PPAs) for projects for which letters of award (LoAs) have been granted.

The Ministry issued a set of directions to the four REIAs — SECI, NTPC, NHPC, and SJVN — to address delays in executing PSAs and PPAs.

To address delays in PSA execution, MNRE has directed REIAs to review all pending cases in which LoAs have been issued, but PSAs remain unsigned for extended periods.

These cases must be categorized into those where PSA signing is likely and those where it appears difficult or unlikely. For projects in the latter category, particularly where developers have not applied for connectivity through prescribed routes, the REIAs will initiate appropriate actions, including cancellation of LoAs, in line with standard bidding guidelines and tender provisions.

Last November, the government directed REIAs to close all legacy bids and cancel the LoAs for all renewable energy projects for which PPAs and PSAs were not feasible by November 30, 2025. The four REIAs together had unsigned PPAs/PSAs for 42 GW of projects.

The MNRE has also emphasized improving market discipline and bid efficiency by directing that post-tender negotiations to modify discovered tariffs should be discouraged.

Additionally, before issuing new bids, REIAs must engage with states and procurers to assess actual power demand, including peak requirements, and secure procurement commitments in advance to avoid supply-demand mismatches.

Further, the order notes that REIAs should not include a greenshoe option in bids without prior approval from the appropriate regulatory commission, ensuring adherence to bidding guidelines.

In June last year, the Ministry of Power had stated that Indian companies registered under the Companies Act, 2013, and holding a valid Category-I electricity trading license are eligible to become REIA if they have a net worth exceeding ₹5 billion (~$58.24 million) and a long-term credit rating of A or above. The net worth must exclude revaluation reserves.

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