New Delhi: The government is likely to rebid around 40 gigawatts (GW) of renewable energy projects that remain stalled due to the absence of power purchase agreements (PPAs), official sources said on Wednesday. The projects include both solar and wind capacity, reports The Hindu businessline.
One official said marketing efforts are underway to find buyers for the power. “If these do not succeed, we may eventually have to close them,” the official noted.
The projects are currently at the stage of price discovery, with no investments made so far. Solar tariffs were discovered in the range of ₹2.38 to ₹2.56 per unit, while wind tariffs stood between ₹3.70 and ₹3.90 per unit. “No developer will face a loss since work has not started yet,” another source added.
Meanwhile, industry body FICCI said the Central Electricity Regulatory Commission (CERC) is in the final stages of releasing guidelines for virtual power purchase agreements (VPPAs), which could unlock financing for the stranded projects.
S.K. Chatterjee, Chief of Regulatory Affairs at CERC, said the framework is almost complete after consultations with stakeholders on the draft guidelines issued in May.
FICCI said VPPAs will allow corporate buyers to support renewable projects without physically taking electricity, instead receiving renewable energy certificates as proof of green power use. The commission expects VPPAs to serve two purposes — helping companies meet environmental, social and governance (ESG) targets, and supporting over 40 GW of projects currently stuck without PPAs.
The regulator has worked with the Securities and Exchange Board of India to ensure VPPAs are treated as non-transferable delivery contracts rather than financial derivatives. Under the model, the electricity generated will still be sold into wholesale markets, though not delivered directly to corporate buyers.
