India’s central government cannot stop states from issuing their own clean energy tenders even as federal agencies face nearly 50 GW of unsold renewable power, a senior official said on Thursday.
Large volumes of centrally bid projects have remained unsold due to pending transmission lines and regulatory delays, Reuters earlier reported, prompting many state discoms to delay signing power purchase agreements.
Some industry representatives had urged the Centre to ask states to pause new renewable tenders and instead utilise the unsold power lying with federal agencies.
But Santosh Kumar Sarangi, Secretary, Ministry of New and Renewable Energy, said that clean energy growth in India “is not necessarily going to happen only through federal agencies”.
Speaking at a CII event, he said state-led tenders will increasingly be the main driver of renewable additions as they are customised to each state’s requirements.
The remarks signal a shift from the earlier model where central agencies played a key role in aggregating supply and selling renewable power to states.
State utilities have been reluctant to buy from federal agencies, citing higher landed costs of procuring power from renewable-rich states like Rajasthan and Gujarat, and concerns over transmission delays.
India’s transmission expansion has struggled to keep pace with its rapid renewable buildout, making states wary of timely delivery.
Sarangi said that while unsold project inventory exists, rising power demand—fuelled by long-term economic growth and energy-intensive sectors such as data centres—will create strong headroom for clean energy.
India added a record 31.5 GW of renewable capacity between January and October this year and aims to reach 500 GW of non-fossil fuel power by 2030, Reuters reported.
Large volumes of centrally bid projects have remained unsold due to pending transmission lines and regulatory delays, Reuters earlier reported, prompting many state discoms to delay signing power purchase agreements.
Some industry representatives had urged the Centre to ask states to pause new renewable tenders and instead utilise the unsold power lying with federal agencies.
But Santosh Kumar Sarangi, Secretary, Ministry of New and Renewable Energy, said that clean energy growth in India “is not necessarily going to happen only through federal agencies”.
Speaking at a CII event, he said state-led tenders will increasingly be the main driver of renewable additions as they are customised to each state’s requirements.
The remarks signal a shift from the earlier model where central agencies played a key role in aggregating supply and selling renewable power to states.
State utilities have been reluctant to buy from federal agencies, citing higher landed costs of procuring power from renewable-rich states like Rajasthan and Gujarat, and concerns over transmission delays.
India’s transmission expansion has struggled to keep pace with its rapid renewable buildout, making states wary of timely delivery.
Sarangi said that while unsold project inventory exists, rising power demand—fuelled by long-term economic growth and energy-intensive sectors such as data centres—will create strong headroom for clean energy.
India added a record 31.5 GW of renewable capacity between January and October this year and aims to reach 500 GW of non-fossil fuel power by 2030, Reuters reported.
