MNRE Centralizes Renewable Energy Bidding Under SECI To Boost Efficiency And Reduce Delays

The Ministry of New and Renewable Energy (MNRE) has introduced a major policy change to simplify and strengthen the renewable energy procurement process in India. In a directive issued on April 6, 2026, the Ministry announced that the Solar Energy Corporation of India will now be the only Renewable Energy Implementing Agency (REIA) allowed to issue new bids as an intermediary procurer.

Earlier, four agencies—SECI, NTPC Limited, NHPC Limited, and SJVN Limited—were responsible for issuing renewable energy bids. With this new move, MNRE aims to centralize the bidding process under SECI to improve coordination and efficiency. However, NTPC, NHPC, and SJVN will continue handling their existing projects. They have been asked to complete all ongoing responsibilities, including signing and executing Power Purchase Agreements (PPAs) and Power Sale Agreements (PSAs) for projects where Letters of Award (LoAs) have already been issued.

The Ministry has also raised concerns about delays in project execution, especially cases where LoAs were issued but PSAs are still pending. All REIAs have been directed to review such cases carefully and classify them based on their chances of completion. Projects that are unlikely to move forward—particularly those where developers have not applied for grid connectivity—may face cancellation in a phased manner, as per standard guidelines.

Another important part of the directive focuses on improving discipline in the market. The Ministry has clearly discouraged any post-tender negotiations on tariffs, aiming to ensure transparency and fairness in pricing. It has also asked REIAs to better understand the actual power demand before issuing new bids. This includes consulting with state utilities and end-procurers to confirm their requirements and peak demand needs. The idea is to avoid over-procurement and ensure that supply matches real demand.

In addition, stricter rules have been introduced for the “Green Shoe” option, which allows expansion of project capacity beyond the initial tender size. REIAs will now need prior approval from the appropriate regulatory commission before including this option in bids.

Signed by Scientist ‘C’ Mohd Azmal Mansoori, the directive reflects the government’s effort to reduce delays, improve project viability, and create a more organized and efficient renewable energy market in India.