Indian companies registered under the Companies Act, 2013, and holding a valid Category-I electricity trading license are eligible to become renewable energy implementing agencies (REIA) if they have a net worth exceeding ₹5 billion (~$58.24 million) and a long-term credit rating of A or above. The net worth must exclude revaluation reserves.

The company’s Board of Directors must also formally approve the proposal to act as a REIA.

To uphold transparency, subsidiaries or group companies of the REIA are barred from participating in its own bidding processes. In the event of ownership changes, mergers, or demergers, the company must continue to meet the eligibility criteria specified in the guidelines.

REIAs will operate for a fixed term of five years. However, the central government can revoke the designation if the REIA fails to meet its obligations. Even after termination, the company must continue to honor commitments made under existing power sale and purchase agreements.

This qualification criterion is part of the Ministry of Power’s latest guidelines to designate REIAs under the tariff-based competitive bidding (TBCB) framework to meet the increasing demand for renewable energy to meet the country’s green goals.

Under the TBCB framework, REIAs serve as intermediary procurers. They aggregate power from renewable generators and sell it to state utilities or direct-to-consumers. Their responsibilities include conducting the bidding process, signing power sale agreements with developers, and power purchase agreements with procurers. They must also ensure payment security for developers.

The REIAs are mandated by the Ministry of New and Renewable Energy to issue 50 GW of tenders annually until the end of the financial year 2028. In the first year after setting renewable energy bidding targets, the REIAs exceeded their goal of bidding out 50 GW of solar, hybrid, wind, and round-the-clock projects in the financial year 2024.

All REIAs must adhere to competitive procurement procedures. Procurement must take place through e-bidding platforms notified by the Central Electricity Regulatory Commission. Until such platforms are officially notified, secure and reliable existing e-procurement platforms can be used.

These rules apply to all REIA designations made after the issuance date. Existing REIAs, including SECI, NTPC, NHPC, and SJVN, will continue under their current designations under earlier government orders.

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