India's bold clean energy journey has encountered a troubling setback as the Ministry of New and Renewable Energy (MNRE) has now reported a total of 11,400 megawatts (MW) of renewable energy tenders were cancelled over a two‑year period. The announcement, in a written reply to the Rajya Sabha from Union Minister of State Shripad Yesso Naik, affects the period of April 1, 2023, to June 30, 2025 and reveals that systemic problems have hampered solar and wind project implementation in India.
The cancelled tenders were floated by major agencies such as the Solar Energy Corporation of India (SECI), NTPC, NHPC and SJVN - all key to India's renewable roadmap. Cancellations stemmed from low bidder interest, unfeasible tariffs, and procurement pullbacks by DISCOMs. Analysts emphasize that tendering often occurred without firm Power Sale Agreements (PSAs), causing awarded projects to stall.
Compounding the issue, the ministry disclosed that 43,922 MW of capacity with Letters of Award (LoAs) remains stuck without PSA signatures. In these cases, electricity has no confirmed buyer - halting implementation entirely. This backlog has unsettled project developers and raised investor concerns about policy execution in India’s clean energy sector.
To address this, the government amended its bidding guidelines in February 2025, and introduced a provision in the guidelines eliminating tenders if a PSA was not signed within twelve months of the LoA. This measure was intended to instil better coordination between tender issuing agencies and DISCOMs to mitigate situations where projects are awarded, but without the proper off-take arrangements. Similarly, the MNRE also called for enhanced transmission planning and buyer commitments before large scale tenders are issued.
Industry experts caution that managed proactively, these cancellations need not derail India’s journey toward a 500 GW non‑fossil fuel capacity by 2030. Reports from IEEFA and Mercom India show 38.3 GW of tenders cancelled since 2020-due largely to infrastructure gaps, tender design flaws, and regulatory delays.
Despite challenges, India's renewable energy capacity continues growing. As of October 2023, installed capacity surpassed 186 GW. To maintain investor confidence and achieve decarbonization goals, future tenders must align with real demand, be backed by firm PSAs, and supported by robust grid infrastructure. The 11,400 MW cancellations stand as a wake‑up call: policy, procurement, and deployment must work in sync.
Further Reading & Related Coverage
- Rooftop Solar in India to Hit a New Milestone in 2025 - growth trends in rooftop deployment.
- Mercom India: India Cancels Renewable Energy Tenders 11,400 MW - original tender cancellation report.
- IEEFA: Sector Hit by Weak Demand, Cancellations - analysis of underbidding and off‑take issues.
- Economic Times: Investor skepticism over renewable targets - broader investor sentiment.
