India has cancelled11.4 GW of renewable energy procurement tenders issued by central agencies such as SECI, NTPC, NHPC, and SJVN due to high tariffs, low participation, and withdrawal of end-procurers. Minister of State for New and Renewable Energy Shripad Yesso Naik informed Parliament that the cancellations primarily stemmed from market misalignments and demand uncertainty. The government has taken steps to address these issues, including amending standard bidding guidelines to allow for the cancellation of Letters of Award (LoAs) if Power Sale Agreements (PSAs) are not signed within 12 months. As of the same date,43.922 GW of renewable capacity had received LoAs, but PSAs were not yet signed, mainly due to the rapid increase in bid volumes. To expedite PSA finalizations, the government has engaged with states for Renewable Consumption Obligation (RCO) compliance and encouraged demand aggregation from DISCOMs before issuing tenders. India’s installed non-fossil capacity stands at 242.78 GW, accounting for 50.08%of the total.
India cancels 11.4 GW renewable tenders amid low bids: MNRE
As per MNRE, India has cancelled 11.4 GW of renewable tenders by SECI, NTPC, NHPC, and SJVN due to high tariffs, poor participation and unsigned PSAs.
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