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Ministry of Power Issues Eligibility Guidelines for Renewable Energy Implementing Agencies

The Ministry of Power has issued new eligibility criteria for Indian companies aspiring to become Renewable Energy Implementing Agencies (REIAs) under the tariff-based competitive bidding (TBCB) framework. To qualify, companies must be registered under the Companies Act, 2013, hold a valid Category-I electricity trading license, have a net worth exceeding Rs500 crore (excluding revaluation reserves), and possess a long-term credit rating of A or above. Board approval is also mandatory for acting as a REIA.

REIAs, operating as intermediary procurers, aggregate renewable energy and sell it to state utilities or large consumers. They manage competitive bidding, execute power purchase and sale agreements, and ensure payment security for developers. The designation is valid for five years, with provisions for revocation if obligations are unmet—though existing contractual commitments must be honored post-termination.

To promote transparency, REIAs' subsidiaries or affiliates are barred from participating in their bidding processes. In cases of structural changes such as mergers or demergers, continued compliance with the guidelines is required.

REIAs are tasked with issuing 50 GW of renewable energy tenders annually until FY 2028. In FY24, they surpassed this target. The guidelines mandate e-bidding via platforms approved by CERC or secure alternatives until formal notification. Existing REIAs like SECI, NTPC, NHPC, and SJVN will continue operations under prior designations.