India's Power Ministry Directs Clean Energy Agencies to Sign Purchase Agreements Without Buyers

1 min read Updated on 04 Nov 2025, 06:04 PM

Reviewed by

Naman SharmaScanX News Team

Overview

India's Ministry of Power has directed renewable energy agencies to sign power purchase agreements directly with clean energy developers for projects lacking buyers. This move aims to address the issue of 50 GW of clean energy projects unable to come online due to transmission and regulatory delays. The directive, to be implemented by November 30, affects 42 GW of renewable projects without buyers from various agencies including NHPC, NTPC, SJVN, and SECI. This initiative aligns with India's goal to double its non-fossil fuel capacity to 500 GW by 2030.

*this image is generated using AI for illustrative purposes only.

The Ministry of Power in India has taken a significant step to address the challenges facing the country's renewable energy sector. The ministry has instructed renewable energy implementation agencies to sign power purchase agreements directly with clean energy developers for projects that currently lack buyers. This directive comes in response to a substantial 50 gigawatts (GW) of clean energy projects being unable to come online due to incomplete transmission lines and regulatory delays.

Key Points of the Directive

Aspect	Details
New process	Agencies to sign agreements directly with developers
Previous process	Agencies signed agreements with both end-buyers and developers
Deadline for implementation	November 30
Meeting date	October 17
Attendees	Representatives from NTPC Ltd., NHPC Ltd., SJVN Ltd., and Solar Energy Corp

Projects Without Buyers

Of the 93 GW of renewable capacity tendered from fiscal 2024 onwards, a significant portion lacks buyers:

NHPC: 15.8 GW
NTPC: 12.4 GW
SJVN: 10 GW
SECI: 3.9 GW

In total, 42 GW of renewable projects currently do not have buyers.

Implications for India's Clean Energy Goals

This initiative is aligned with India's goal to double its non-fossil fuel capacity to 500 GW by 2030. By allowing direct agreements between agencies and developers, the government aims to accelerate the implementation of renewable energy projects and overcome the current obstacles in the sector.

As India navigates these challenges, the outcome of this directive will be crucial in shaping the country's renewable energy landscape and its progress towards sustainable power generation. The success of this approach could potentially unlock a significant portion of India's planned renewable capacity and contribute substantially to its clean energy transition.

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Renewable Energy Firms Challenge GST on REC Trading in High Court

1 min read Updated on 03 Nov 2025, 07:36 PM

Reviewed by

Jubin VergheseScanX News Team

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Overview

Leading renewable power companies have filed a legal case in the Delhi High Court against GST demands on Renewable Energy Certificates (RECs) trading. The petitioners, including Global Energy and Wind World Resources, argue that RECs should be classified as 'securities' and thus exempt from GST. This dispute could significantly impact clean energy compliance costs and policy frameworks in India. The case highlights the complex relationship between taxation policies and renewable energy initiatives, with potential implications for the future of renewable energy trading and compliance in the country.

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Leading renewable power companies have taken legal action against GST demands on Renewable Energy Certificates (RECs) trading, bringing the matter to the Delhi High Court. The case highlights a significant dispute in the renewable energy sector, with potential implications for clean energy compliance costs and policy frameworks.

Key Points of the Legal Challenge

Petitioners: Global Energy, Wind World Resources, Wind World Infrastructure, Vaayu Renewable, and Vaayu Infrastructure
Respondents: GST authorities in Gujarat, Tamil Nadu, Andhra Pradesh, and Karnataka
Core Issue: Whether RECs should be subject to GST

Legal Arguments and Implications

The renewable energy companies argue that RECs should be classified as 'securities', which are exempt from GST. This classification dispute forms the crux of the legal battle, with significant implications for the renewable energy sector.

Aspect	Details
Legal Dispute	Whether RECs constitute goods, services, or securities under GST law
Industry Concerns	Potential increase in clean energy compliance costs
Policy Impact	Possible disruption of frameworks designed to incentivize renewables
Financial Risk	Creation of retrospective liability burdens for companies

Understanding RECs

Renewable Energy Certificates are market-based instruments that play a crucial role in meeting Renewable Purchase Obligations. They are particularly valuable when direct green power sourcing is not feasible.

REC Characteristics	Details
Trading Platforms	Indian Energy Exchange, Power Exchange India Limited
Primary Function	Help energy consumers meet Renewable Purchase Obligations
Market Role	Facilitate compliance when direct green power sourcing is challenging

Next Steps

The Delhi High Court has scheduled the next hearing. The outcome of this case could have far-reaching implications for the renewable energy sector, potentially affecting the cost structure and incentive mechanisms for clean energy in India.

This legal challenge underscores the complex interplay between taxation policies and renewable energy initiatives. As the case progresses, it will be crucial to monitor how the court's decision might shape the future landscape of renewable energy trading and compliance in India.