In Q1 2026, government agencies issued nearly 6 GW of solar tenders, a 68% decrease from 17 GW in Q1 2025 but almost double the capacity issued in Q4 2025.

Although individual agency targets for FY 2025-26 have not yet been specified, the Ministry of New and Renewable Energy (MNRE) has set a target to install 50 GW of renewable energy capacity in the coming year, including a minimum of 10 GW of wind projects.

The four key implementing agencies, NTPC, NHPC, SECI, and SJVN, together issued 8.8 GW of tenders during FY 2025-26. There was a slower pace of tender issuance relative to the annual target as agencies prioritized execution of previously awarded projects and backlog clearance.

In Q1 2026, these agencies accounted for 5.7% of total solar tender issuance, reflecting a relatively cautious approach to new bidding activity.

Procurement activity has slowed as distribution companies (DISCOMs) remain hesitant to sign long-term power purchase agreements (PPAs) for solar power projects, driven by expectations of further tariff declines.

Additionally, delays in finalizing power sale agreements (PSAs) have further accelerated the issue, as developers and offtakers continue to renegotiate tariffs in response to shifting price expectations. Regulatory challenges and varying approval processes across states have delayed procurement activity. As a result, implementing agencies are concentrating on clearing existing backlogs in line with MNRE’s directive to cancel Letters of Award (LoAs) to projects that have not signed PSAs.

Bidding activity was also affected by high tariff caps, curtailment concerns, and delays in land acquisition and transmission availability. Developers cited curtailment risks as a key concern, resulting in bids exceeding ceiling tariffs and leading to multiple bid rejections. Lower ceiling tariffs further compressed developers’ margins, reducing participation and, in some cases, leading to cancellations or retendering.

Additionally, the approaching compliance deadlines for the Approved List of Models & Manufacturers (ALMM)/ Approved List of Cell Manufacturers (ALCM) shifted focus away from new bids as developers awaited clarity on possible extensions. Land availability issues, domestic content requirement rules, and transmission delays, particularly in Gujarat, added further pressure.

As the market transitions from volume-driven expansion to demand-aligned growth, developers are becoming increasingly cautious amid uncertainties around material price volatility and project financing challenges.

Auctions

During the quarter, around 4 GW of solar PV projects were auctioned, a 47% decline from Q4 2025 and a 64.3% drop compared to the same period last year. The auctions included standalone solar, solar-plus-storage, and wind-solar hybrid power projects. For wind-solar hybrid tenders, solar capacity is assumed to account for 67% of the total hybrid project capacity when the tender documents do not specify the capacity split.

Auction activity has increasingly shifted toward storage-linked procurement, with solar-plus-storage projects gaining traction due to growing grid balancing needs and rising evening peak demand. This shift has been further supported by policy measures from the Ministry of Power and Central Electricity Authority, including minimum storage requirements, despite the higher upfront costs.

In contrast, auction activity for standalone utility-scale solar, wind-solar hybrid, and floating solar projects has declined, driven by reduced DISCOM demand, falling daytime tariffs, project execution challenges, and transmission constraints.

Top Tender Issuing Agencies

The capacity of tenders issued by Rajasthan Solar Development Company was the highest in the quarter, contributing 44.4% of the total. Punjab State Power Corporation and NTPC accounted for 27% and 5.6%, respectively.

Goa Energy Development Agency and MAHAGENCO accounted for 5.4% each of the tenders issued in the quarter.

Major Tenders

Rajasthan Solar Park Development Company floated a tender to set up 2,450 MW of solar projects, with 1,600 MW/6,400 MWh of battery energy storage systems (BESS) for peak power supply at the Pugal Solar Park in Bikaner, Rajasthan.

The Punjab State Power Corporation issued a tender to procure 1,000 MW of power from solar projects with capacities ranging from 1 MW to 5 MW, located anywhere in Punjab. It also invited bids to procure an additional 500 MW of solar power from projects located anywhere in the country on a long-term basis.

MAHAGENCO invited bids for the engineering, procurement, and construction (EPC) of 300 MW of solar projects across Maharashtra under Phase II.

Goa Energy Development Agency floated a tender to set up 300 MW of solar projects integrated with a 150 MW/900 MWh BESS.

Major Auctions

Adyant Enersol (Datta Infra), Serentica Renewables India, AMPIN Energy Utility Nine (AMPIN Energy Transition), and ACME Solar Holdings won Solar Energy Corporation of India’s auction for the assured peak supply of 4,800 MWh (1,200 MW X 4 hours) of firm and dispatchable renewable energy (FDRE) from interstate transmission-connected projects with co-located energy storage systems (FDRE-Tranche VII).

Engie Energy India, NLC India Renewables, RPIL Power Three (Rays Power Infra), and Oriana Power won SECI’s Tranche XXI auction to set up 1,200 MW of interstate transmission system (ISTS)-connected solar projects integrated with 600 MW/3,600 MWh energy storage systems.

Vismaya Renewables India Project, a subsidiary of UPC Renewables, Hexa Climate Solutions, Purvah Green Power, and Sprng Energy, won CESC’s auction to develop 600 MW of ISTS-connected wind-solar hybrid projects across India under a build-own-operate model.

Thirty companies won Hubballi Electricity Supply Company’s auction to commission 80 solar power projects totaling 423.7 MW, along with their associated 11 kV lines and remote monitoring systems under the RESCO mode.

Pune-based Enrich Energy bagged an EPC contract, including land, from NTPC Renewable Energy for a 300 MW ISTS-connected solar power project near NTPC Anta, Rajasthan.

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