Of the almost 46 GW of PPAs that stay anonymous, around 16 GW, or approximately 35 percent, are vanilla solar|Picture Credit: vencavolrab
The Ministry of New & Renewable Energy( MNRE)is preparing to rebid those vanilla solar and wind power tasks that are suffering due to hold-ups in finalizing of power purchase arrangements (PPAs).
The federal government’s intent is to “renovate” these capabilities by clubbing them with battery energy storage systems (BESS) so that they can be made use of by Discoms throughout peak need non-solar hours. Vanilla RE tasks have functional issues such as the problem of intermittency of RE sources and grid stability.
The concern associates with around 40 gigawatts (GW) of renewable resource (RE) capability, the majority of which appears vanilla solar or wind power, that have actually discovered no takers amongst Discoms. In April, New & & Renewable Energy Minister Pralhad Joshi stated that he is talking with states to persuade them to fast lane finalizing of PPAs.
Sources stated that the majority of these quotes that occurred were either vanilla solar or vanilla wind power tasks. Presently, in the power exchange daytime rates have actually boiled down. Throughout peak solar hours, the requirement of electrical power is not as high as it utilized to be. In course of time the offering to Discoms will need to alter.
“The ideal mix for resolving their (Discoms) daytime requirement and peak need will need to take place through company and despatchable RE (FDRE) or day-and-night (RTC) supply. To that level Solar Energy Corporation of India (SECI) is now reformulating its bidding system and bidding standards. It is attempting to attend to the real requirement of Discoms,” described a leading source.
Future quotes from the RE Implementing Agencies (REIAs) will come clubbed with BESS. Most current quotes by SECI are now either FDRE or RTC, stated among the sources.
The federal government is likewise most likely to enable RE designers to give up long-stuck jobs without conjuring up bank assurances. Far, giving up a job would lead to forfeiture of bank warranties. The exemption for designers with such jobs might feature a cut-off date for.
“MNRE is pondering on this (bank assurance). It might provide some relaxation for these tasks such as if a designer gives up the task, the federal government will return the bank assurance,” a source stated.
According to an August 5 report by JM Financial, around 46 GW of RE capabilities are presently idle in the nation for desire of finalizing of PPAs, which originates from an out of proportion rise in quotes driven by the federal government’s required to welcome quotes for 50 GW yearly throughout FY24– FY28.
Furthermore, the progressing need from Discoms– moving from vanilla solar and wind jobs approximately 2019, to company and dispatchable renewable resource (FDRE) and day-and-night (RTC) in 2022, and now to solar integrated with BESS-has added to the intricacy, the brokerage included.
Of the almost 46 GW of PPAs that stay anonymous, around 16 GW, or approximately 35 percent, are vanilla solar. Amongst REIAs, NTPC and NHPC represent the biggest share, contributing 16 GW and 12 GW, respectively, followed by SECI and SJVN, with each having 9 GW of anonymous PPAs.
Released on September 21, 2025
