In April, Minister of New & Renewable Energy Pralhad Joshi said that he is talking with States to convince them to fast track signing of PPAs.
| Photo Credit:
GUILLERMO MARTINEZ
Tendering activity declined during the January-March 2025 period on a sequential and annual basis largely impacted by a backlog of unsigned power purchase agreements (PPAs) and power sale agreements (PSAs).
According to JMK Research and Analytics, only nine new tenders totalling 4.8 gigawatts (GW) were issued across solar, wind, wind-solar hybrid, and RE with storage segments in Q1 2025, a 49 per cent decline from Q4 2024 and an 88.2 per cent drop year-on-year.
“The slowdown is mainly due to a backlog of unsigned PSAs. Since 2023 through 2024, more than 40 GW of awarded RE capacity has not secured any off takers. This delay has created uncertainty among market stakeholders and continues to affect tendering activity and project timelines across the sector,” the agency added.
Clean energy consulting firm, Mercom India also pointed out the slowing of tendering activity during the first quarter of the current calendar year.
Raj Prabhu, CEO of Mercom Capital Group, said “Indian solar installations were off to a slow start in Q1. While the project pipeline for 2025 is strong, a shortage of domestic modules and persistently high prices remain key concerns. Unless supply-side challenges are addressed quickly, project execution could stall. PPA and PSA signings continue to lag behind tenders, while land and transmission bottlenecks are slowing progress and delaying project commissioning.”
The government must act quickly to approve the Inter State Transmission System (ISTS) waiver extension and end the uncertainty surrounding it. Without an extension, a significant number of projects will become financially unviable, further disrupting the market, he warned.
In April, Minister of New & Renewable Energy Pralhad Joshi said that he is talking with States to convince them to fast track signing of PPAs.
JMK Research said that a capacity of around 7 GW was allotted to various RE developers in Q1 2025, reflecting a decrease of 8.6 per cent compared to Q4 2024. There is a significant drop of around 65 per cent in the allotment of tenders in the RE space compared to Q1 2024.
“This considerable decline year on year is due to delays in signing PSAs, creating uncertainty for developers, compounded by under subscription and frequent tender cancellations,” it added.
Additionally, the drop is also attributed to the exceptionally high volume of capacity allotted in Q1 2024, which sets a higher comparative base for Q1 2025, driven in part by the initial momentum to meet the Ministry of New & Renewable Energy’s newly introduced annual bidding target of 50 GW from FY24 to FY28, it said.
Published on June 3, 2025
In April, Minister of New & Renewable Energy Pralhad Joshi said that he is talking with States to convince them to fast track signing of PPAs.
| Photo Credit:
GUILLERMO MARTINEZ
Tendering activity declined during the January-March 2025 period on a sequential and annual basis largely impacted by a backlog of unsigned power purchase agreements (PPAs) and power sale agreements (PSAs).
According to JMK Research and Analytics, only nine new tenders totalling 4.8 gigawatts (GW) were issued across solar, wind, wind-solar hybrid, and RE with storage segments in Q1 2025, a 49 per cent decline from Q4 2024 and an 88.2 per cent drop year-on-year.
“The slowdown is mainly due to a backlog of unsigned PSAs. Since 2023 through 2024, more than 40 GW of awarded RE capacity has not secured any off takers. This delay has created uncertainty among market stakeholders and continues to affect tendering activity and project timelines across the sector,” the agency added.
Clean energy consulting firm, Mercom India also pointed out the slowing of tendering activity during the first quarter of the current calendar year.
Raj Prabhu, CEO of Mercom Capital Group, said “Indian solar installations were off to a slow start in Q1. While the project pipeline for 2025 is strong, a shortage of domestic modules and persistently high prices remain key concerns. Unless supply-side challenges are addressed quickly, project execution could stall. PPA and PSA signings continue to lag behind tenders, while land and transmission bottlenecks are slowing progress and delaying project commissioning.”
The government must act quickly to approve the Inter State Transmission System (ISTS) waiver extension and end the uncertainty surrounding it. Without an extension, a significant number of projects will become financially unviable, further disrupting the market, he warned.
In April, Minister of New & Renewable Energy Pralhad Joshi said that he is talking with States to convince them to fast track signing of PPAs.
JMK Research said that a capacity of around 7 GW was allotted to various RE developers in Q1 2025, reflecting a decrease of 8.6 per cent compared to Q4 2024. There is a significant drop of around 65 per cent in the allotment of tenders in the RE space compared to Q1 2024.
“This considerable decline year on year is due to delays in signing PSAs, creating uncertainty for developers, compounded by under subscription and frequent tender cancellations,” it added.
Additionally, the drop is also attributed to the exceptionally high volume of capacity allotted in Q1 2024, which sets a higher comparative base for Q1 2025, driven in part by the initial momentum to meet the Ministry of New & Renewable Energy’s newly introduced annual bidding target of 50 GW from FY24 to FY28, it said.
Published on June 3, 2025
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The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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