Government to Optimize Transmission for Renewable Energy Projects

Union Minister Prahlad Joshi announced a detailed 'case-by-case' evaluation of uncontracted renewable energy capacities. The government aims to reveal the assessment findings by January 2026. Active exploration is ongoing to optimize transmission capacity and improve contract frameworks for over 40 GW of projects in advanced stages.

The government is diligently working to scrutinize uncontracted capacities within renewable energy projects on a 'case-by-case' basis, according to Union Minister for New and Renewable Energy (MNRE) Prahlad Joshi. The aim is to have a clear understanding of these capacities by early January 2026, following a comprehensive review expected to last 30-45 days.

Presently, over 40 GW of renewable projects are advancing towards securing Power Purchase Agreements (PPAs) or Power Sale Agreements (PSAs), as well as transmission connectivity. To achieve this, the government is exploring innovative mechanisms to optimize transmission capacity and enhance the contract framework. This includes the potential signing of PPAs and PSAs for specific awarded capacities, while also revisiting provisions like the green shoe option. Importantly, no automatic cancellations of bids are being considered.

During a session in Jhajjar, Haryana, Joshi confirmed that MNRE’s officials are instructed to evaluate projects missing signed PPAs or PSAs. Reflecting on a recent dialogue with the Ministry of Power, Joshi assured that detailed findings would be available post-assessment, enabling decisive progress.