India has decided to stop setting rigid annual targets for renewable energy tenders.
Santosh Kumar Sarangi, Secretary, Ministry of New and Renewable Energy (MNRE), confirmed the move while engaging with stakeholders regarding the 43 GW project overhang and the transition to a demand-led tendering model at the ongoing IEW.
Sarangi clarified that the government is choosing stability over speed. By halting the mandated 50 GW annual target, the ministry is ensuring that the projects already in the pipeline are bankable and have clear off-take agreements before adding more supply to a congested grid.
The government is shifting its strategy to a demand-based model. This change aims to resolve a massive 43 GW backlog of unsold renewable projects. Developers currently hold rights to these projects but lack confirmed buyers from state utilities.
Addressing the procurement gap:
It must be noted that the previous goal of tendering 50 GW annually led to a supply-demand mismatch. In 2025, the ministry tendered only 15 GW as state utilities hesitated to sign new contracts. Utilities are delaying purchases in hopes of lower future tariffs and better transmission infrastructure.
Under the new framework, tenders will only be issued after assessing actual demand from state power companies.
Clearing the project overhang:
The immediate priority is finding off-takers for the existing inventory. NHPC holds the largest share of unsold tenders at 15.8 GW, while SECI has the lowest at 3.9 GW. Sarangi stated that while some projects may be cancelled, the ministry expects to sell a significant portion of the backlog. “We are not looking at a fixed figure because we must first finalize pending bids.”
The 500 GW vision:
Despite the tactical shift, India maintains its goal of 500 GW non-fossil capacity by 2030. The country added a record 38 GW of clean energy in 2025. The government is also reviewing the roles of agencies like NTPC and SJVN, potentially centralizing future tenders under SECI to improve efficiency.
India’s transition to demand-driven bidding is a necessary course correction to stabilize the green energy market. By aligning tenders with utility needs, the MNRE ensures that future growth is both bankable and sustainable. This strategy is vital for India to reach its net-zero 2070 target without creating a bubble of stranded assets.
