In April Minister of New & Renewable Energy Pralhad Joshi said he is talking to States to convince them to quickly follow the signing of PPAs. | Photocredit: Guillermo Martinez
During the period of January March 2025, the tendering activity fell on a successive and annual basis that was largely affected by a backlog of non-signed electricity buy agreements (PPAs) and Power Sale Agreements (PSAs).
According to JMK Research and Analytics, only nine new tenders of a total of 4.8 gigawatts (GW) were issued on solar energy, wind, wind-solar hybrid and re with storage segments in Q1 2025, a decrease of 49 percent of Q4 2024 and a 88.2 percent drop year.
“The delay is mainly due to a disadvantage of non -signed PSAs. Since 2023 to 2024, more than 40 GW of allocated RE -capacity has not protected off -takers. This delay has created uncertainty under the market for market contracts market and the agency for the sector and project time lines remains.
Clean Energy Adviesbureau, Mercom India, also pointed to the delay of procurement 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 Conryted Quices. Could Stall.
The government must act quickly to properly approve the exemption extension of the Inter State Transmission System (ISTS) and to end the uncertainty around it. Without an extension, a considerable number of projects will not become financially feasible, so that the market is further disturbed, he warned.
In April Minister of New & Renewable Energy Pralhad Joshi said he is talking to States to convince them to quickly follow the signing of PPAs.
Assigned capacity
JMK research said that a capacity of approximately 7 GW was assigned to various RE developers in Q1 2025, which reflects 8.6 percent compared to Q4 2024. There is a significant decrease of approximately 65 percent in the allocation of tenders in the RE space compared to Q1 2024.
“This considerable decrease in the year is due to delays in signing PSAs, creating uncertainty for developers, aggravated by under subscription and frequent tender cancellations,” it added.
In addition, the decrease is also attributed to the exceptionally high volume of capacity assigned in Q1 2024, which forms a higher comparative basis for Q1 2025, partly powered by the initial momentum to satisfy the Ministry of New & Renewable Energy’s newly introduced annual FY24, the biddel said.
Published on 3 June 2025
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