In order to ensure equitable progress for developers, electricity distributors, and the national grid, India has entered a new phase of its renewable energy policy and is taking a nuanced, case-by-case approach to continuing Renewable Energy Implementing Agency bidding. While reviewing roughly 44 gigawatts of capacity for which power sale agreements have not yet been signed, the government has ruled out cancelling any projects granted via REIA tenders. According to officials, the action is intended to preserve investor trust while coordinating new capacity with market and grid readiness.

The Ministry of New and Renewable Energy stated that “due diligence is underway to assess each case individually.” “Any cancellations will only occur after arduous efforts to obtain PSAs and PPAs.” With the exception of massive hydro, India’s renewable energy capacity increased from over 35 GW in 2014 to over 197 GW in 2025. According to the ministry, the next phase will concentrate on both capacity expansion and the effective integration of renewable energy sources into the grid through market and storage reforms.

The industry is currently moving from rapid expansion to deeper structural integration, which reflects the complexity of maintaining long-term growth as well as market maturity. Even though 24,928 MW of new contracts have been finalised since April 2023, as of September 30, REIAs have issued letters of award for 43,942 MW where PSAs have not yet been signed.

When it comes to signing PSAs for projects that are anticipated to go online years later, distribution companies have been cautious. As a result, REIAs have been instructed to classify these cases according to the possibility of reaching agreements, taking into account variables including bid structure, tariff levels, and connectivity schedules.

Phased cancellation may only be applied to projects with little chance of PSA realisation. To reduce the risk of stranded assets, the government explained that investments in renewable projects usually don’t start until after PPA execution. The government has pushed states to adhere to the Energy Conservation Act’s Renewable Consumption Obligations in order to expedite PSA signing. Additionally, it has recommended that REIAs track implementation issues and compile demand prior to releasing tenders.

LoAs can now be cancelled under revised bidding procedures if they are not carried out within a year, guaranteeing accountability and effective capacity rollouts. The market is moving away from pure solar power and towards dispatchable renewable solutions as a result of the declining costs of solar-plus-storage systems. These devices give utilities more dependability by delivering energy during peak hours.

Wind-solar hybrids are no longer as competitive as solar-plus-storage systems, according to MNRE. Designing tenders for solar + storage and firm and dispatchable renewable energy configurations has been promoted by REIAs. The government has unveiled a transmission plan for 2.4 lakh crore that aims to integrate 500 GW of clean energy capacity in order to facilitate the growth of renewable energy.

It is anticipated that recent changes to the General Network Access framework will enable dynamic grid sharing, ease traffic, and open up renewable corridors. Notwithstanding issues with worldwide supply and funding, India added over 29 GW of renewable capacity in fiscal 2024–2025 and an additional 25 GW in the first half of 2025–2026. Strong investor enthusiasm, fuelled by rising industrial and commercial demand for sustainable energy, is reflected in the pace.

According to the ministry, integration, dependability, and budgetary restraint now characterise India’s path towards renewable energy. The administration seeks to maintain momentum while guaranteeing long-term sustainability by coordinating expansion with grid strength and market stability.