India Signs PPAs for 230 GW Renewable Capacity, Tackles 40 GW Stranded Projects

Minister for New and Renewable Energy, Pralhad Joshi stated that Power Purchase Agreements (PPAs) are already in place for 230 GW out of India’s 275 GW installed renewable energy capacity. 

Additional PPAs for 10–12 GW are expected to be signed in the next three to four months, reflecting steady progress in formalising power offtake arrangements.

The government is also facilitating direct PPAs with Indian Railways to enable cost-effective renewable energy usage in rail operations.

Addressing Stranded Renewable Capacity

Around 40 GW of renewable energy capacity currently lacks Power Sale Agreements (PSAs), creating challenges for project execution. To address this, the government is exploring solutions such as rebidding certain solar and wind projects if required.

Authorities have indicated that these projects remain at a pre-investment stage, meaning no financial loss would occur if bids are withdrawn or restructured. Efforts are ongoing to connect developers with distribution companies and secure offtake agreements.

Shift Towards Advanced Renewable Models

The Ministry of New and Renewable Energy has signalled a shift away from conventional standalone solar or wind bids. Future tenders are expected to focus on Firm and Dispatchable Renewable Energy and Round-the-Clock Renewable Energy projects.

This transition is supported by falling battery costs, which have improved the viability of hybrid and storage-backed renewable projects. Solar-wind hybrid systems are gaining traction due to their ability to provide consistent energy supply compared to intermittent standalone sources.

Introduction of Virtual PPAs

The Central Electricity Regulatory Commission is working on final guidelines for virtual PPAs to unlock financing for stranded projects. These agreements allow corporate buyers to support renewable energy projects financially without taking physical delivery of electricity.

Instead, buyers receive renewable energy certificates, enabling them to meet ESG goals while supporting green energy development.

Conclusion

India’s renewable energy sector is evolving through policy support, innovative contract structures, and a shift towards more reliable energy models. With expanded PPAs, new bidding frameworks, and virtual agreements, the government aims to address stranded capacity and accelerate the country’s clean energy transition.

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