Ministry Of Power Issues Guidelines To Designate Companies As Renewable Energy Implementing Agencies

The Ministry of Power, Government of India, has finalized and released new operational guidelines for designating companies as Renewable Energy Implementing Agencies (REIAs). These guidelines aim to streamline the process of appointing eligible companies to facilitate renewable energy development in the country. The guidelines were issued after stakeholder consultation and have now come into force.

REIAs play a critical role in implementing renewable energy projects through tariff-based competitive bidding processes. These agencies function as intermediary procurers, aggregating power from various generators and supplying it to distribution licensees or consumers. Their responsibilities include conducting the bidding process, signing Power Sale Agreements (PSAs) with renewable energy developers, and entering into Power Purchase Agreements (PPAs) with the end consumers or discoms. They are also accountable for ensuring payment security for the developers.

According to the new guidelines, only Indian companies registered under the Companies Act, 2013, are eligible to apply for designation as REIAs. These companies must hold a valid Category-I electricity trading license issued by the Central Electricity Regulatory Commission (CERC). Financially, the applicant must have a net worth exceeding ₹500 crore and a long-term credit rating of ‘A’ or above. Furthermore, approval from the company’s Board of Directors is necessary to proceed with the REIA designation.

The designated REIA must follow the procurement guidelines laid out by the Central Government under Section 63 of the Electricity Act, 2003. All procurement should be done exclusively through e-bidding platforms prescribed by CERC. However, until such platforms are officially designated, existing e-procurement platforms with a proven track record and security features may be used. Importantly, REIAs must ensure there is no conflict of interest—subsidiaries or group companies of the REIA are not allowed to participate in the bidding process.

Additionally, if there is any change in ownership, merger, or demerger of the designated REIA company, the eligibility criteria must continue to be met even after the change.

These guidelines will apply to new designations issued after their release. Companies such as SECI, NTPC Ltd, NHPC Ltd, and SJVN Ltd., which have already been designated as REIAs, will continue to function as per previous orders issued by the Central Government.

The designation of a company as an REIA will remain valid for five years at a time. However, the Central Government reserves the right to terminate the designation before the completion of the term if the REIA fails to fulfill its responsibilities following the applicable rules, guidelines, or orders. In the event of such termination, the company will still be held accountable for its obligations under the bidding documents and agreements already signed for completed bidding processes.

Finally, any clarifications or modifications to the guidelines can be made with the approval of the Ministry of Power, in consultation with the Ministry of New and Renewable Energy. This move marks a significant step in formalizing and strengthening the institutional structure required for scaling up renewable energy deployment in India.