The Government of India has clarified that it has not cancelled any viable renewable energy projects where Letters of Award (LoAs) have been issued, dispelling concerns regarding contract instability in the booming sector.
In a statement laid before the Lok Sabha on Tuesday, Union Minister for New and Renewable Energy Pralhad Joshi confirmed that no cancellations have been made for projects awarded by Renewable Energy Implementing Agencies (REIAs) since April 2023.
“Neither any cancellations have been made after issuance of Letters of Award nor any list for cancellation has been prepared,” the Minister stated in response to a question by Ernakulam MP Hibi Eden. The clarification comes as a relief to investors and developers in India’s green energy market.
Rapid Progress and New Targets: The Ministry highlighted a significant milestone: India has already achieved 50% of its installed electricity capacity from non-fossil fuel sources—five years ahead of the target set under its Nationally Determined Contributions (NDC) to the Paris Agreement.
As of October 31, 2025, the country’s total installed capacity from non-fossil sources stands at approximately 259 GW. In the current financial year alone, 31.2 GW of new capacity has been added.
Strategic Shift: From ‘Plain Solar’ to FDRE While assuring stability for existing contracts, the government outlined a major strategic pivot in future tenders. The Ministry noted a “reduced demand for plain solar power” among distribution companies (DISCOMs), who are increasingly favoring “Firm and Dispatchable Renewable Energy” (FDRE).
“With the declining cost of solar-plus-storage and dispatchable renewable power, there is a growing preference among distribution companies and end procurers for such solutions,” the statement read.
To align with this demand, the government has directed agencies like SECI, NTPC, and NHPC to move away from plain solar tenders. Future bids will focus on:
- Solar with Energy Storage: To manage intermittency.
- Peak Power Supply: Configurations designed to supply power during high-demand hours.
- FDRE: Solutions that provide round-the-clock power stability, similar to conventional thermal plants.
Proactive Measures for Implementation: To ensure these projects reach completion, the government is urging states to comply with the Renewable Consumption Obligation (RCO) mandates under the Energy Conservation Act. Regional workshops are also being organized to resolve implementation hurdles and accelerate the signing of Power Purchase Agreements (PPAs).
Read also: Maharashtra records 3.5 lakh solar rooftop installations under PM Surya Ghar Muft Bijli Yojana
