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NTPC Raises $750 Million via External Commercial Borrowing


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					</table><p>India added 1.8 GW of wind energy capacity in the first quarter (Q1) of the calendar year 2025, an increase of 63% year-over-year (YoY) from 1.15 GW in Q1 2024. The capacity additions rose 134% quarter-over-quarter (QoQ), according to <a href="https://www.mercomindia.com/research" target="_blank" rel="noopener">Mercom India Research</a>.</p>
<p>Wind-specific renewable purchase obligations from 2023 to 2030 and the annual onshore wind bidding target of 10 GW from 2023 to 2027 have served as key long-term policy enablers for capacity additions. However, the 100% Inter-State Transmission System (ISTS) charges waiver, currently set to expire in June 2025, has led to a spike in installations in Q1 and is expected to further accelerate activity in the upcoming quarter, particularly if the waiver is not extended.</p>
<p>During the quarter, Karnataka led all states in capacity additions with 620 MW. Madhya Pradesh followed with 351 MW, a significant increase despite reporting no installations in previous quarters. Tamil Nadu added 331 MW, while other states collectively contributed 573 MW to the total installed capacity.</p>
<p>JSW Renew Energy commissioned 210.5 MW under SECI&#8217;s 2500 MW ISTS-connected projects (Tranche-IX) across Karnataka and Tamil Nadu, and Sembcorp commissioned 54.6 MW under the 1,200 MW ISTS-connected (Tranche-XI) project in Karnataka in Q1 2025.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/image.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-79792 " src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/image.png" alt="wind q1" width="631" height="436" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/image.png 693w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/image-300x207.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/image-650x449.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/image-624x431.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/image-600x415.png 600w" sizes="(max-width: 631px) 100vw, 631px" /></a></p>
<p>As of March 2025, the cumulative installed wind capacity was 50 GW, rising 3.9% <a href="https://www.mercomindia.com/indias-installed-wind-capacity-rose-45-yoy-in-q4-2024" target="_blank" rel="noopener">from</a> 48.2 GW at the end of December 2024.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/image-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-79795 " src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/image-1.png" alt="cumulative wind q1" width="671" height="442" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/image-1.png 908w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/image-1-300x198.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/image-1-768x506.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/image-1-650x428.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/image-1-624x411.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/image-1-600x395.png 600w" sizes="(max-width: 671px) 100vw, 671px" /></a></p>
<p>At the end of Q1, Gujarat led the cumulative installed wind energy capacity with 12.6 GW. Tamil Nadu and Karnataka followed with 11.7 GW and 7.3 GW, respectively.</p>
<p>Maharashtra and Rajasthan rounded off the top five with 5.2 GW each of cumulative installed wind capacity.</p>
<p>Andhra Pradesh and Madhya Pradesh also had significant cumulative wind installations, with 4.3 GW and 3.1 GW at the end of the quarter.</p>
<p>The top five states accounted for 84.5% of the cumulative installed wind capacity as of March 2025.</p>
<p>Hybrid power projects, particularly those combining wind and solar and Firm and Dispatchable Renewable Energy (FDRE) projects, have been key drivers of wind installations in India. Looking ahead, the repowering of aging wind turbines presents a significant opportunity for future growth.</p>
<p>In January 2025, Telangana set a <a href="https://www.mercomindia.com/telangana-aims-for-20-gw-renewable-energy-capacity-additions-by-2030" target="_blank" rel="noopener">target</a> of 2.5 GW for wind installations under its Renewable Energy Policy initiatives.</p>
<p>In October last year, Andhra Pradesh <a href="https://www.mercomindia.com/andhra-pradesh-clean-energy-policy-targets" target="_blank" rel="noopener">announced</a> its wind installation target of 35 GW capacity by 2029. In December, Rajasthan <a href="https://www.mercomindia.com/rajasthan-clean-energy-policy-2030" target="_blank" rel="noopener">unveiled</a> its plans for 25 GW of wind and hybrid energy by 2030 under its Integrated Clean Energy Policy, 2024.</p>


India’s Wind Energy Installations Surge 134% QoQ in Q1 2025


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					</table><p>With just over two months to go before the interstate transmission system (ISTS) charges waiver ends, the Indian renewable energy project developers are keeping their fingers crossed for an extension.</p>
<p>The ISTS-charges waiver will end on June 30, 2025. While the waiver is in effect, commercial and industrial consumers can access renewable energy from various states at a more affordable price.</p>
<p>The waiver was intended to foster renewable energy transition by lowering generation costs and help India reach its 500 GW goal of non-fossil fuel energy capacity by 2030.</p>
<p>In 2024, the <a href="https://cercind.gov.in/" target="_blank" rel="noopener">Central Electricity Regulatory Commission</a> <a href="https://www.mercomindia.com/cerc-amends-regulations-waiver-applicability" target="_blank" rel="noopener">expanded</a> the transmission charges waiver eligibility by adding renewable energy generation systems based on offshore wind to the energy sources list, which already includes hydropower generation.</p>
<p>About 3 GW projects were auctioned in 2023, which are yet to sign power purchase agreements (PPA). Rajasthan has the highest capacity, with 18% of the projects with PPAs yet to be signed, followed by Madhya Pradesh with 7% and Karnataka with 4%. Around 13 GW projects, which were auctioned in 2023, have signed PPAs but have not been commissioned yet due to several factors.</p>
<p>These projects will lose the benefit of the waiver, pushing their project costs significantly.</p>
<p>“The uncertainty around the ISTS waiver extension has brought project development to a near standstill. Without an extension, India’s 2030 renewable energy targets are at serious risk. Many projects won’t be financially viable, and the momentum the industry has built over the years could slow dramatically. With so much geopolitical uncertainty already in play, this the time for India to shine as a leading destination for renewable energy investments by providing policy support, stability and clarity that the market is urgently seeking,” said Raj Prabhu, CEO of Mercom Capital Group.<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/ists-indepth-1-.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-78902 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/ists-indepth-1-.png" alt="" width="632" height="405" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/ists-indepth-1-.png 632w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/ists-indepth-1--300x192.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/ists-indepth-1--624x400.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/ists-indepth-1--600x384.png 600w" sizes="(max-width: 632px) 100vw, 632px" /></a></p>
<p>&nbsp;</p>
<p><strong>Developers Push for Extension</strong></p>
<p>The government has already <a href="https://www.mercomindia.com/no-ists-charges-solar-wind-december-2022" target="_blank" rel="noopener">extended</a> the waiver multiple times since 2016. The last waiver extension was issued in 2022 for projects to be commissioned by June 30, 2025. After this deadline, 25% of the applicable ISTS charges will be <a href="https://www.mercomindia.com/ists-charges-levied-solar-wind" target="_blank" rel="noopener">levied</a> on projects commissioned between July 1, 2025, and June 30, 2026. Increased by 25% annually, 100% of ISTS charges will be levied from July 1, 2028.</p>
<p><span data-teams="true">Developers and independent power producers hope for another extension. However, if recent tenders are any indication an extension appears unlikely. Terms of recent tenders specify that projects located outside the state must quote ISTS charges and transmission losses, over and above the tariff.</span></p>
<p>A developer commented, “We are in a ‘wait and watch’ situation. We see the power ministry has stated that where there is a genuine delay, supported by evidence, some concessions will be provided, but it has refrained from granting a blanket extension of the exemption.”</p>
<p>The developer contended that another extension is crucial. IPPs and developers have experienced massive delays in converting bids to power purchase agreements (PPAs). “There is a huge backlog of auctions where PPAs are yet to be signed due to delays relating to land acquisition and permits, infrastructure deficits, etc.”</p>
<p>These delays can cause huge losses to the bidders. “If a developer placed a bid assuming the ISTS waiver would apply, and if the waiver is no longer available, it would be unfair to penalize the developer, especially since the bidder didn’t cause the delay,” goes the refrain of renewable energy developers.</p>
<p>Kannan Krishnan, Managing Director, <a href="https://www.jakson-green.com/" target="_blank" rel="noopener">Jakson Green</a>, made out a case for another ISTS charges waiver extension. “With more than 50 GW of PPAs yet to be signed, the burden of ISTS charges will further slow down the offtake. The government needs to extend the waiver until the PPA backlogs are cleared to enable projects to be installed.”</p>
<p>Timely government action is key, according to developers. As Ateesh Samant, COO of <a href="https://www.oysterrenewable.com/" target="_blank" rel="noopener">Oyster Renewable Energy</a>, put it, “Timely communication about the extension from the government is certainly beneficial, as it allows the entire ecosystem to align expectations and planning horizons. The renewable industry has matured significantly since this waiver was first implemented, and we’re now better positioned to absorb policy transitions through technological advancements and business model innovations.”</p>
<p><strong>Market Implications</strong><strong> </strong></p>
<p>Stakeholders estimate a huge impact on the market if the waiver is not extended. Those with delayed PPAs will suffer from losses, increasing generation costs, and infrastructure bottlenecks.</p>
<p>“If the exemption isn’t extended, we estimate the cost impact to be around ₹0.40 (~$0.0047)/kWh- ₹0.50 (~$0.0059)/kWh. That’s significant, especially for solar projects bidding around ₹2.40 (~$0.028)/kWh to ₹2.50 (~$0.029)/kWh. Losing ₹0.40 (~$0.0047)/kWh to ₹0.50 (~$0.0059)/kWh (16% to 17% decrease) can bring the effective tariff down to ₹2 (~$0.023)/kWh. That can seriously affect the financial viability of projects,” according to one estimate by a developer.</p>
<p>For developers who factored in the ISTS exemption in their bids, its absence can be significant.</p>
<p>Developers believe that if the waiver is not extended, the government’s planned 50 GW annual tendering trajectory until 2030 could be in jeopardy.</p>
<p>“It could adversely affect the renewable energy sector, signaling a lack of sustained policy commitment. Such a move could undermine the confidence of offtakers and financing institutions, which is crucial for the sector’s growth. It will slow down our growth towards the ambitious target of 500 GW from non-fossil fuel sources by 2030,” said Krishnan.</p>
<p>Samant said that if the waiver is not extended, the market will go through a period of adjustment if not disruption. “Project economics would certainly be recalibrated, with potential tariff adjustments of ₹0.70 (~$0.0082) &#8211; ₹1.20 (~$0.014)/kWh over the next three years, when the full impact of the removal of the waiver kicks in, depending on the source of energy.”</p>
<p>While the deadline is only weeks away, there has been silence from the government so far.</p>
<p>A few developers have started to plan in case there is no extension. “We’ve been strategically preparing for multiple scenarios regarding the ISTS waiver. We’ve begun diversifying our project pipeline geographically, increasing our focus on intrastate projects where we can co-locate generation closer to consumption centers,” said Samant.</p>
<p>Another developer noted, “While it seems a bit unlikely that there will be an extension, the government works at its own pace. The market is currently apprehensive; there’s a widespread belief that the government might go ahead and extend it for a meaningful period. But despite that perception, decisions are not being made on that assumption.”</p>
<p>The Indian solar sector is no stranger to market fluctuations and policy shifts. What the industry needs now is clarity. At a minimum, the government should communicate its decision on the ISTS waiver quickly so the companies can plan effectively and minimize disruptions to ongoing and upcoming projects.</p>


Without ISTS Waiver Extension, India’s 2030 Renewable Energy Goals Will Be at Risk


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					</table><p>Solar photovoltaic projects comprised 21.2% of India’s total installed power capacity and 46.8 % of the total installed renewable capacity at the end of December 2024. India’s installed solar capacity rose 10.5% quarter-over-quarter (QoQ) and 57.2% year-over-year (YoY).</p>
<p>Renewables, including large hydroelectric power projects, comprised 45.4 % of the country’s cumulative installed power capacity, with 209.7 GW installed at the end of the calendar year (CY) 2024. The country’s installed renewable energy capacity rose 5.1% QoQ and 25.7% YoY.</p>
<p>India’s installed power capacity was 462.2 GW at the end of CY 2024, up 2.6% <a href="https://www.mercomindia.com/solar-share-india-rises-q3" target="_blank" rel="noopener">from</a> 450.7 GW as of September 2024, according to data from Mercom’s <a href="https://www.mercomindia.com/product/india-solar-project-tracker" target="_blank" rel="noopener">India Solar Project Tracker</a>, Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/en/" target="_blank" rel="noopener">MNRE)</a>, and Central Electricity Authority (<a href="https://cea.nic.in/?lang=en" target="_blank" rel="noopener">CEA</a>).</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-75940 " src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/01/Screenshot-2025-01-30-154633.png" alt="Solar Energy’s Contribution to India’s Power Mix Surpassed 21% in Q4" width="710" height="456" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/01/Screenshot-2025-01-30-154633.png 766w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/01/Screenshot-2025-01-30-154633-300x193.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/01/Screenshot-2025-01-30-154633-650x417.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/01/Screenshot-2025-01-30-154633-624x401.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/01/Screenshot-2025-01-30-154633-600x385.png 600w" sizes="(max-width: 710px) 100vw, 710px" /></p>
<p>&nbsp;</p>
<p>Large hydro, with a total installed capacity of 47 GW, accounted for nearly 10.2% of the total installed power capacity as of December 2024. No large hydro projects were commissioned in Q4 2024. The country’s installed large hydro capacity increased by 25.2% YoY during the year.</p>
<p>Wind installations in India stood at 48.2 GW, making up 10.4% of the country’s overall installed power capacity. The country’s wind energy capacity rose 1.7% QoQ and 7.7% YoY.</p>
<p>Installed biomass and small hydro totaled 10.7 GW and 5.1 GW, contributing 2.3% and 1.1% to the total installed power capacity as of December 2024. The country’s biomass-based power capacity rose 0.03% QoQ and 4.5% YoY, whereas the installed capacity for small hydropower was up 0.5% QoQ and 2.3% YoY.</p>
<p><strong>Conventional Energy Sources</strong></p>
<p>At the end of 2024, the country’s installed power capacity for conventional energy sources stood at 252.6 GW, accounting for 54.6% of all installations. The installed capacity rose 0.5% QoQ and 2% YoY to fulfill the baseload requirements of the country’s increasing power demand. However, the share of conventional power reduced from nearly 58% as of December 2023 to 54.6% as of December  2024.</p>
<p>The electricity generated from thermal sources includes coal (45.9%), gas (5.4%), nuclear (1.8%), lignite (1.4%), and diesel (0.13%). The increase in installed conventional power capacity was primarily due to additions to the country’s coal and nuclear power capacity. The installed capacity of coal power rose 0.6% QoQ and 2.2% YoY. The country did not add any nuclear power capacity in Q4. However, the installed nuclear capacity rose 9.4% YoY during the year.</p>
<p>With the increasing share of intermittent power sources, including solar and wind, in the country’s power mix, the Central Electricity Regulatory Commission <a href="https://www.mercomindia.com/cerc-recovery-of-legacy-dues-dsm-pool-account" target="_blank" rel="noopener">reiterated</a> that the approved methodology in the National Load Despatch Centre’s detailed procedure applies to all deficits in the Deviation Settlement Mechanism Pool Account. The commission directed the distribution companies to ensure timely payment of dues to avoid delays in compensating ancillary service providers and maintain grid stability.</p>


Solar Energy’s Contribution to India’s Power Mix Surpassed 21% in Q4

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