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Ministry of Power Introduces Draft Guidelines for Renewable Energy Implementing Agencies (REIAs)

In a bid to accelerate India’s renewable energy (RE) transition, the Ministry of Power (MoP) has released draft guidelines for the designation of Renewable Energy Implementing Agencies (REIAs). These specialized entities will streamline RE project development, procurement, and implementation, ensuring a transparent and competitive clean energy market.

Role of REIAs

REIAs are designated by the Central Government to act as intermediaries between renewable energy generators, distribution companies (discoms), and other consumers. Their primary responsibilities include:

• Ensuring Transparent Bidding: Conducting competitive bidding processes for RE procurement.
• Facilitating Timely Execution: Speeding up the implementation of large-scale RE projects.
• Signing Power Agreements: Entering into Power Sale Agreements (PSAs) with RE developers and Power Purchase Agreements (PPAs) with discoms or consumers.
• Providing Payment Security: Offering payment security mechanisms to attract investments.

Eligibility Criteria for REIAs

• Must hold a valid Category-I trading license under Central Electricity Regulatory Commission (CERC) regulations.
• Minimum net worth of ?500 crore.
• Long-term credit rating of ‘A’ or higher.
• Board of Directors' approval for REIA designation.

Terms and Conditions

• Designation Period: Valid for five years, subject to periodic performance reviews.
• Compliance: Must adhere to competitive bidding and e-bidding guidelines.
• Termination: Designation can be revoked if the REIA fails to perform its duties.
• Project Continuity: REIAs must manage all allocated projects until their agreements conclude, even after termination.

Current REIAs, such as the Solar Energy Corporation of India (SECI), NTPC, NHPC, and SJVN, will continue operating under their existing mandates.

Stakeholder Consultation

The MoP has invited stakeholders to submit their comments and suggestions on the draft guidelines by February 26, 2025.

The introduction of REIAs is a strategic move to enhance India’s renewable energy ecosystem. By ensuring transparent procurement, timely execution, and payment security, REIAs will play a crucial role in achieving India’s ambitious 500 GW renewable energy capacity target by 2030.

This initiative underscores the government’s commitment to fostering a competitive and sustainable energy market, paving the way for a cleaner and greener future.