Over 40 GW of RE projects in process of signing power purchase pacts

With over 40 gigawatt of renewable energy projects being in advanced stages of signing power purchase pacts, India's non-fossil fuel based power generation capacity is soon to reach 300 GW, an official statement said on Wednesday.

As on September 30, India's non-fossil fuel based capacity stood at 256 GW including 50 GW of large hydro and 8.78 GW nuclear power.

According to the statement, more than 40 gigawatt of renewable energy projects are in advanced stages of signing power purchase agreements, power sale agreement and securing transmission connectivity.

The additional projects will take the country's total non-fossil fuel based electricity generation capacity to around 300 GW, adding to the goal of having 500 gigawatt (GW) of renewable capacity by 2030, it said.

An official source had earlier said that the execution of around 40 GW of already awarded renewable energy projects has been stalled in the absence of power purchase agreements (PSAs).

"India's renewable growth remains among the fastest in the world, driven by multi-pathway expansion. Over 40 GW of awarded renewable projects are presently in advanced stages of securing PPAs, PSAs, or transmission connectivity," the Ministry of New and Renewable Energy (MNRE) said.

In the current year, Central Renewable Energy Implementing Agencies (REIAs) have conducted bids for 5.6 GW, and bidding for 3.5 MW of renewable projects have been carried out by state agencies.

Additionally Commercial and Industrial (C&I) consumers are likely to add nearly 6 GW of renewable energy capacity in the calendar year 2025.

Thus, capacity addition of RE is progressing through multiple pathways and not necessarily through REIA-led bids alone.

The MNRE said that India continues to add 1525 GW of new renewable capacity annually, a rate that remains among the fastest in the world despite global headwinds like supply-chain disruptions, fluctuating module prices, and tighter financing conditions which have slowed commissioning timelines.

On policy support, the ministry said domestic manufacturing, incentivised through the production-linked incentive (PLI) scheme, domestic content requirement, imposition of duties, implementation of Approved List of Models and Manufacturers (ALMM), and duty exemptions for capital equipment, is reducing import dependency and creating industrial depth.

The process of power generation follows transportation and the MNRE said it is working on plans to ensure uninterrupted supply.

It said the government has already planned for building High-Voltage Direct Current (HVDC) corridors and boosting inter-regional transmission capacity from 120 GW today to 143 GW by 2027, and 168 GW by 2032.