India to Rebid 40 GW of Renewable Projects Amid Lack of PPAs

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Indian government is preparing to rebid nearly 40 gigawatts (GW) of stalled solar and wind projects that have failed to progress due to the absence of power purchase agreements (PPAs). Originally awarded through competitive tenders, these projects never moved beyond tariff discovery. Without firm offtake agreements from state distribution companies, developers have been unable to secure financing, leaving large volumes of capacity idle and slowing India's renewable pipeline.

To address the deadlock, the Central Electricity Regulatory Commission (CERC) is finalizing guidelines for virtual power purchase agreements (VPPAs), expected to provide an alternative mechanism for corporates to procure renewable energy credits without consuming the physical electricity. Draft rules were released in May 2025 and following consultations with industry stakeholders and the Securities and Exchange Board of India (SEBI), the framework is now at an advanced stage. By combining rebidding with the VPPA framework, the government aims to revive investor confidence and accelerate progress toward its non-fossil fuel target of 500 GW by 2030.

Despite these steps, challenges remain. Distribution companies' financial stress, rising equipment costs, and persistent grid and land acquisition bottlenecks continue to pose execution risks. However, the decision to re-tender stalled capacity while introducing innovative procurement models signals a clear policy push to ensure awarded projects do not remain stranded. If implemented effectively, the move could unlock much-needed investment and strengthen India's renewable energy momentum.

Industrial Info is tracking more than 2,500 renewable-energy projects across India, totaling about US$753 billion of investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a list of detailed project reports.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).