India Meets 2030 Clean Power Goal Early Amid 11 GW Tender Cancellations

The Ministry of New and Renewable Energy (MNRE) has revealed that 11.4 GW of renewable energy tenders have been cancelled and Power Sale Agreements (PSAs) for over 43 GW of capacity remain unsigned since April 2023. 

This was revealed by Minister of State for New and Renewable Energy and Power, Shripad Yesso Naik, in response to a question in the Rajya Sabha. He stated that tenders floated by agencies such as SECI, NTPC, NHPC, and SJVN were cancelled due to factors including low participation, discovery of unviable tariffs, and withdrawal of targeted power procurers.

The delays in signing Power Sale Agreements (PSAs) were also linked to muted interest from developers and limited purchasing commitment from power distribution companies (DISCOMs). As of June 30, 2025, PSAs for 43,922 MW remain unsigned, even though Letters of Award (LoAs) have already been issued.

The government attributed the backlog of unsigned PPAs to a significant spike in renewable capacity tendered in recent years. While 22,683 MW worth of PSAs have been finalized since April 2023, the remaining projects are facing procedural delays. To address this misalignment between bidding, transmission readiness, and actual demand, the government amended the Standard Bidding Guidelines in February 2025. These amendments now permit the cancellation of an LoA if the corresponding PSA is not signed within 12 months.

The ministry also emphasised that bid issuance and inter-state transmission planning are now being carried out in close coordination to ensure alignment and avoid further delays.

Despite these operational setbacks, the government asserted that India is on track with its climate goals. According to the Central Electricity Authority (CEA), the country achieved its 2030 Nationally Determined Contribution (NDC) target of 50 percent non-fossil fuel-based power capacity five years ahead of schedule. As of June 30, 2025, India’s total installed electricity capacity stands at 484.82 GW, of which 242.78 GW or 50.08 percent, comes from non-fossil sources. This includes 116.25 GW of solar, 51.67 GW of wind, 11.60 GW of bioenergy, 54.48 GW of hydropower, and 8.78 GW of nuclear energy.

This indicates that while India’s  renewable capacity continues to grow, implementation challenges, particularly in aligning DISCOM procurement with project rollout, remain a critical bottleneck in the clean energy transition.