The Indian government has set an ambitious target of achieving 50 GW of renewable energy capacity through bidding in the financial year 2025. However, the first quarter of 2025 saw a significant drop in solar tenders, with only 14.4 GW of tenders floated, a 53.1% decrease compared to the same period in 2024. Despite this, the four main implementing agencies, NTPC, NHPC, SECI, and SJVN, issued tenders accounting for 77% of the annual target.
The auction activity also decreased, with 6.4 GW of capacity auctioned in Q1 2025, a 74.4% year-over-year decline. The auctions included standalone solar, solar + storage, and wind-solar hybrid power projects. The main reason for the decline is the uncertainty surrounding unsigned power purchase agreements (PPAs) and the high cost of domestic solar modules.
The top tender-issuing agencies in Q1 2025 were Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA), Jodhpur Vidyut Vitran Nigam (JdVVNL), and Madhya Pradesh Urja Vikas Nigam (MPUVNL). Some of the major tenders issued during the quarter include:
* JdVVNL’s 2.3 GW solar power project tender under the PM KUSUM program
* UPNEDA’s 2 GW solar power project tender in Uttar Pradesh
* MPUVNL’s 1.5 GW solar project tender in Madhya Pradesh
The major auctions that took place during the quarter include:
* NTPC’s auction for 2 GW solar power projects, won by NTPC Renewable Energy, ReNew Solar Power, and others
* SECI’s auction for 2000 MW of renewable energy, won by Altra Xergi Power
* NTPC’s auction for 1.2 GW ISTS-connected wind-solar hybrid power projects, won by EG Solwin Renewables, Welspun Renewable Energy, and others
The Indian solar market is facing challenges due to the growing need for firm and dispatchable renewable energy, uncertainty surrounding unsigned PPAs, and high domestic module prices. Despite these challenges, the government is pushing forward with its renewable energy targets, and the market is expected to pick up in the coming quarters. The India Solar Tender Tracker by Mercom provides real-time updates on tender activity, helping stakeholders stay informed about the latest developments in the Indian solar market.