REIAs Propose Auction Of 45 GW Renewable Capacity Pending PPAs To Ensure Timely Project Commissioning

Renewable Energy Implementing Agencies (REIAs), including the Solar Energy Corporation of India (SECI), have proposed auctioning renewable energy capacities that already have transmission connectivity but do not yet have Power Purchase Agreements (PPAs). According to an official document, there is approximately 45.34 GW of such capacity pending PPA signing. This includes 31.80 GW of projects that have already received transmission connectivity and 13.54 GW at the application stage.

The capacities are distributed across several states, with Rajasthan accounting for 18.749 GW, Gujarat 2.330 GW, Maharashtra 3.764 GW, Madhya Pradesh 4.854 GW, Karnataka 6.992 GW, Andhra Pradesh 7.113 GW, and 1.540 GW in other states.

The REIAs suggested allowing the use of connectivity for other Letters of Award (LoAs) issued to the same connectivity grantee by the same or another REIA, provided a PPA or Power Sale Agreement (PSA) is signed. They also proposed that the same grantee could use the connectivity for any other customer or agency RE projects where a PPA/PSA is in place, and at least 50% of the land required for the project is available. The project must be commissioned within 24 months or by the operationalization date of General Network Access (GNA), whichever is later.

The agencies further stated that if the original connectivity grantee exits, the vacated connectivity should be reallocated through a fresh application. This process should be completed within 21 days using an auction method under any of the identified modes, such as LoA, land, or land-bank guarantee routes.

Auctions would only be permitted for developers who commit to commissioning the project within 24 months or up to the GNA operationalization date, and who agree to assume any liabilities of the previous grantee. The auction process would prioritize applicants offering the highest premium for the grant of the connectivity.

This proposal aims to ensure optimal utilization of already granted transmission connectivity and accelerate the commissioning of renewable energy projects. By introducing the auction route for capacities without PPAs, REIAs seek to maintain project timelines, maximize the value of transmission resources, and encourage responsible project development among developers. The plan is expected to bring clarity and structure to managing connected capacities pending PPAs, providing a transparent mechanism for reallocating unused connectivity and supporting India’s renewable energy growth.