PSAs pending for 43.92 GW of renewable energy capacity: Minister tells RS

New Delhi: Power sale agreements (PSAs) have not yet been signed for 43,922 MW of renewable energy (RE) capacity awarded through central agency tenders, Minister of State for New & Renewable Energy Shripad Yesso Naik informed Rajya Sabha on Tuesday. These projects, tendered by agencies such as SECI, NTPC, NHPC, and SJVN, have already received Letters of Award (LoAs) but are awaiting offtake agreements with state distribution companies or other end procurers.

PSU Watch is now on Whatsapp Channels. Click here to join

Centre intervenes to address state-level delays

The government has attributed the PSA backlog to reluctance or delays by state utilities. In response, it has taken several measures—urging states to comply with Renewable Consumption Obligations (RCOs) under the Energy Conservation Act, encouraging renewable energy implementing agencies to aggregate demand before issuing tenders, and conducting regional workshops with major procuring states to address concerns.

Additionally, standard bidding guidelines for solar, wind, hybrid, and firm and dispatchable renewable energy (FDRE) projects have been amended to allow cancellation of LoAs if PSAs are not signed within 12 months. On reforms to improve PSA execution, including payment security mechanisms, the minister said these are “a continuous process.”

India meets non-fossil capacity target ahead of time

Despite the PSA delays, the minister said India has already achieved its 2030 target of sourcing 50 percent of installed electricity capacity from non-fossil fuel sources. As of June 30, 2025, India’s total installed capacity stood at 484.82 GW, with 50.08 percent — or 242.78 GW — coming from non-fossil sources. This includes 116.25 GW of solar, 51.67 GW of wind, and 54.48 GW of hydro capacity.

11.40 GW RE tenders cancelled so far

In a separate response to another question raised in the House, Naik said that 11.40 GW of RE power procurement tenders have been cancelled on account of various reasons, which inter-alia include insufficient participation, unreasonably high tariffs discovered, backing out of the targeted end-procurer, etc.

On structural reforms to improve PSA execution and payment security for renewable developers, the minister said the government is continuously examining potential changes, particularly regarding the Payment Security Mechanism.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)