Government agencies floated around 14.4 GW of solar tenders in Q1 2025, a 53.1% drop compared to 30.7 GW in Q1 2024, but a 5.4% increase from Q4 2024.

The Ministry of New and Renewable Energy (MNRE) has set an annual bidding target of 50 GW for renewable projects, with a minimum allocation of 10 GW for wind power. However, agency-specific targets for FY25 have not yet been specified.

The four implementing agencies, NTPC, NHPC, SECI, and SJVN, together issued tenders amounting to 77% of the 50 GW annual target for FY25. They were responsible for 41% of all solar tenders floated in Q1 2025.

Auctions fall

Auction announcements fell 39% from 10.5 GW in Q4 2024 to 6.4 GW in Q1 2025. The auctioned capacity was down 74.4% YoY from 25 GW. The auctions included standalone solar, solar + storage, and wind-solar hybrid power projects.

Even with long-term bidding strategies in place, the market is hitting roadblocks. The growing need for firm and dispatchable renewable energy (FDRE) is putting pressure on developers, while uncertainty around unsigned PPAs continues to stall momentum. Auction activity took a hit this quarter, driven by higher domestic module prices and a tight supply of DCR-compliant modules. What’s more concerning is the delay in power sale agreement signings by distribution companies, which has directly impacted developer interest and participation in recent auctions.

Top Tender Issuing Agencies

The capacity of tenders issued by Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) was the highest in the quarter, contributing 22.9% of the total. Jodhpur Vidyut Vitran Nigam (JdVVNL) and Madhya Pradesh Urja Vikas Nigam (MPUVNL) accounted for 18.6% and 10.4%, respectively.

Jaipur Vidyut Vitran Nigam (JVVNL) accounted for 10%, NHPC, NTPC and BHEL accounted for 8.3% each of the tenders issued in the quarter.

Major Tenders

JdVVNL invited bids to develop 2.3 GW solar power projects through the RESCO model under Component A of the PM KUSUM program.

UPNEDA issued a tender to set up 2 GW of solar power projects in the Chitrakoot, Jalaun, Jhansi, and Lalitpur districts in Uttar Pradesh.

MPUVNL announced a tender to set up a cumulative capacity of 1.5 GW solar projects in Madhya Pradesh under Component C of the PM KUSUM program.

NHPC invited bids to develop 1.2 GW ISTS-connected solar projects with 600 MW/2.4 GWh of integrated ESS.

Bharat Heavy Electricals (BHEL) issued an EPC tender for projects with a cumulative capacity of 1.2 GW at the Khavda Solar Park in Gujarat.

Major Auctions

NTPC Renewable Energy, ReNew Solar Power, Fastnote Biofuels (Hindustan Power), and Adani Renewable Energy Holding Twelve were winners in Uttar Pradesh Power Corporation’s auction to set up 2 GW solar power projects.

Altra Xergi Power won the Solar Energy Corporation of India’s (SECI) auction for the assured peak supply of 8,000 MWh (2000 MW x 4 hours) of renewable energy from interstate transmission system (ISTS)-connected projects under tariff-based competitive bidding (FDRE-VI).

EG Solwin Renewables (Enfinity Global), Welspun Renewable Energy, NLC India, and Adani Renewable Energy Holding Twelve (Adani Green) were winners in NTPC’s auction to develop 1.2 GW ISTS-connected wind-solar hybrid power projects (Hybrid 03).

Adani Renewable Energy Holding Twelve (Adani Green Energy), Sprng Vayu Vidyut (Sprng Energy), Illuminate Hybren (Mahindra Susten), and Avaada Energy won NHPC’s auction to set up 1,200 MW ISTS-connected wind-solar hybrid power projects with or without energy storage (Tranche -X).

Renew Solar Power, EG Energy Development (Enfinity Global), Dineshchandra R Agrawal Infracon, Serentica Renewables India, and Tata Power Renewable Energy have won SJVN’s auction to develop 1,200 MW ISTS-connected projects to supply firm and dispatchable renewable energy.

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