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India to Halt Annual Targets for Clean Energy Tenders

Written by: Team Angel OneUpdated on: 27 Jan 2026, 7:40 pm IST
India will stop setting annual clean energy tender targets and issue new auctions only after assessing demand from state power utilities.
India to Halt Annual Targets for Clean Energy Tenders
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India is to stop setting annual targets for clean energy tenders after missing last year’s auction plan and building up a large volume of projects without confirmed buyers, as per Reuters report. Future tenders will be issued after checking demand from state power utilities rather than following preset yearly figures. 

Developers currently hold rights to build around 43 GW of renewable power capacity that has not been contracted. State utilities have delayed purchases, citing expectations of lower tariffs and concerns over power delivery due to delays in transmission infrastructure. 

Unsold Projects and Ministry Response 

The Ministry of New and Renewable Energy (MNRE) has directed renewable implementation agencies to find buyers for power from earlier tenders. Santosh Kumar Sarangi, a senior MNRE official, said agencies expect to sell a significant portion of the backlog, with less than half of the unsold capacity likely to be cancelled. 

According to power ministry documents reviewed by Reuters, NHPC has about 15.8 GW of unsold tenders, the highest among federal agencies, while the Solar Energy Corporation of India (SECI) has around 3.9 GW, the lowest. 

Tendering Shortfall in 2025 

India had planned to auction around 50 GW of clean energy capacity last year but tendered only around 15 GW, after issuing roughly 50 GW each in 2023 and 2024. Officials said the government is focusing on clearing pending bids before floating new tenders. 

“We are not looking at a figure because we have pending bids that need to be finalised,” Sarangi said, adding that agencies are engaging with state governments to assess procurement requirements. 

Review of Tendering Agencies 

The MNRE is also reviewing the structure of renewable implementation agencies. Power producers NTPCNHPC and SJVN, which currently act as federal tendering agencies, have asked to be relieved of this role. The government is evaluating these requests, which could leave SECI as the main agency handling clean energy tenders. 

Capacity Addition and 2030 Target 

India added around 38 GW of clean energy capacity in 2025. The government continues to target 500 GW of non-fossil fuel capacity by 2030, according to the ministry. 

Read More: US to Buy 10% Stake in Rare Earths Miner with $1.6 Billion Investment 

Conclusion 

The shift to demand-based tendering and a review of agency roles follow a build-up of unsold projects and delays in procurement, while long-term capacity targets remain unchanged. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Jan 27, 2026, 2:10 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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