Government Plans Rebid for 40 GW Stalled Renewable Energy Projects

New Delhi, Sep 18 (KNN) The government is likely to invite fresh bids for about 40 gigawatts (GW) of stalled renewable energy projects that have not progressed due to the absence of power purchase agreements (PPAs), according to official sources. These projects include both solar and wind energy capacities.

Currently, the winners of these tenders are in talks with distribution companies (discoms), who are potential buyers of the power. However, no financial losses have been incurred as no investments have been made yet.

Only price discovery has taken place so far, with solar tariffs ranging between Rs 2.38 and Rs 2.56 per unit, and wind tariffs between Rs 3.70 and Rs 3.90 per unit.

Officials said that if marketing efforts fail, the government may consider closing these stalled projects entirely.

Meanwhile, industry body FICCI stated that the Central Electricity Regulatory Commission (CERC) is in the final stages of releasing guidelines for virtual power purchase agreements (VPPAs).

This new mechanism is expected to unlock financing for over 40 GW of stranded renewable energy projects across the country.

According to S K Chatterjee, Chief of Regulatory Affairs at CERC, the commission has received extensive stakeholder feedback on draft guidelines released in May and is now close to finalising them.

The move is seen as a major step forward for the country’s renewable energy sector, which faces frequent payment delays from discoms under traditional PPAs.

VPPAs would allow corporate buyers to fund renewable energy projects without taking physical delivery of electricity. Instead, they would receive renewable energy certificates as proof of green energy procurement.

CERC has worked with the Securities and Exchange Board of India (SEBI) to design these contracts as non-transferable delivery agreements, ensuring they are not treated as financial derivatives.

(KNN Bureau)