The Ministry of New and Renewable Energy (MNRE) has confirmed that over 42 gigawatts (GW) of renewable energy projects are currently in a state of limbo, having received Letters of Award (LoAs) but awaiting signed Power Sale Agreements (PSAs) with end-procurers.
The data was revealed by Shri Shripad Yesso Naik, the Minister of State for New & Renewable Energy and Power, in a written reply to the Lok Sabha on Wednesday, December 3, 2025.
The Bottleneck: 42,626 MW Pending
Answering Unstarred Question No. 685, raised by Com. Selvaraj V, the Minister disclosed that as of October 31, 2025, a total of 42,626 MW of renewable power capacity remains pending at the PSA stage.
These projects fall under tenders issued since April 2023 by major Renewable Energy Implementing Agencies (REIAs), acting as intermediary procurers. The agencies holding these pending agreements include:
- Solar Energy Corporation of India Limited (SECI)
- NTPC Limited
- NHPC Limited
- SJVN Limited
The delay in signing PSAs with state distribution utilities is a critical hurdle, often stalling the financial closure and physical construction of large-scale green energy projects.
Transmission and Storage Optimization
Addressing concerns about transmission capacity optimization, the Minister highlighted the role of the Central Electricity Authority (CEA). The CEA is currently preparing transmission plans in advance, based on RE potential declared by the MNRE, to give developers clearer visibility.
Crucially, the government is betting big on storage to solve grid congestion. “Around 47.2 GW of Battery Energy Storage System (BESS) has been considered for planning of transmission system upto 2032,” Minister Naik stated. The deployment of BESS is expected to enable peak shifting and reduce network congestion, thereby optimizing transmission assets.
New Regulations for Grid Connectivity
The Ministry also pointed to regulatory updates aimed at easing these bottlenecks. Under the Central Electricity Regulatory Commission (Connectivity and General Network Access to the inter-State Transmission System) (Third Amendment) Regulations, 2025, connectivity will now be granted for both solar and non-solar hours.
This regulatory shift is designed to allow the integration of additional renewable energy with co-located BESS into the grid without requiring new transmission infrastructure.
