Govt turns wary of fresh RE bids, to revise contract model

The government is actively exploring mechanisms to optimise transmission capacity and improve the contracting framework for renewable energy (RE) projects with stakeholders, to enable efficient addition of RE capacity to the grid, the ministry of new and renewable energy said on Tuesday.

According to the ministry, the feasibility of signing power purchase agreements (PPAs) and power sale agreements (PSAs) for certain awarded capacities will be reviewed. The ministry did not rule out cancellations of some of the awarded projects that are stranded, but indicated that it will only be the last resort.