On June 28, 2025, the Ministry of Power (MoP) released the guidelines for designating private companies as Renewable Energy Implementing Agencies (REIAs) to streamline the process of appointing eligible companies to facilitate RE development across India.
- These guidelines are intended to facilitate the smooth execution of renewable energy projects in alignment with the MoP’s Tariff-Based Competitive Bidding (TBCB) framework.
- Currently, four Public Sector Undertakings (PSUs) are designated: New Delhi (Delhi) based NTPC Limited (formerly known as National Thermal Power Corporation), New Delhi-based Solar Energy Corporation of India (SECI), Shimla, Himachal Pradesh (HP) based SJVN Limited (formerly known as Satluj Jal Vidyut Nigam), and Faridabad (Haryana) based NHPC limited (formerly known as National Hydroelectric Power Corporation).
About Renewable Energy Implementing Agencies (REIAs):
i.REIAs play a critical role in implementing RE projects through tariff-based competitive bidding processes.
ii.These agencies function as Intermediary Procurers(IPs), aggregating power from various generators and supplying it to distribution licensees or consumers.
iii.Their responsibilities include conducting the bidding process, signing Power Sale Agreements (PSAs) with RE developers, and entering into Power Purchase Agreements (PPA) with the end consumers or Distribution Companies(DISCOMs).
- They are also accountable for ensuring payment security for the developers.
New Guidelines for REIAs:
i.As per the new guidelines, only Indian companies, registered under the Companies Act, 2013, are eligible to apply for designation as REIAs.
- The designation of a company as a REIA will remain valid for five years at a time.
ii.The companies must hold a valid Category-I electricity trading license issued by the New Delhi-based Central Electricity Regulatory Commission (CERC).
iii.Private sector Indian companies with a net worth of more than 500 crores and a long-term credit rating of A and above can be designated as REIAs.
- Furthermore, approval from the Company’s Board of Directors(BoD) is necessary to proceed with the REIA designation.
iv.The designated REIA must follow the procurement guidelines laid out by the Government of India(GoI) under Section 63 of the Electricity Act, 2003. All procurements must be made exclusively through electronic (e)- bidding platforms prescribed by CERC.
- However, until such platforms are officially designated, existing e-procurement platforms with a proven track record and security features may be used.
- REIA must also ensure there is no conflict of interest. Additionally, subsidiaries or group companies of the REIA are not allowed to participate in the bidding process.
v.The change in ownership, merger or demerger of the designated REIA company, the eligibility criteria must continue to be met even after the change.
vi.The GoI reserves the right to terminate the designation before the completion of the term if the REIA fails to fulfill its responsibilities following the applicable rules, guidelines, or orders.
- In the event of such termination, the company will still be held accountable for its obligations under the bidding documents and agreements signed for completed bidding processes.
About the Ministry of Power (MoP):
Union Minister – Manohar Lal Khattar (Constituency – Karnal, Haryana)
Minister of State (MoS) – Shripad Yesso Naik (Constituency – North Goa, Goa)
