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Private Sector Can Now Become Renewable Energy Implementing Agencies (REIAs)

In a landmark policy shift, the Ministry of Power has opened up the designation of Renewable Energy Implementing Agencies (REIAs) to private companies. Eligible firms must be Indian entities with a net worth of over Rs500 crore, a long-term credit rating of ‘A’ or above, and a valid Category-I electricity trading license from the Central Electricity Regulatory Commission (CERC).

Previously, only four public sector undertakings—NTPC, SJVN, NHPC, and SECI—were designated as REIAs. These agencies act as intermediary procurers, aggregating power through tariff-based competitive bidding (TBCB) and trading it to end consumers. The new policy allows private players to perform this role for a five-year term, with procurement restricted to e-bidding platforms specified by CERC.

However, concerns remain. Experts caution that without firm regulatory oversight, private participation might prioritize profit over public interest goals like tariff stability, rural electrification, and equitable energy access. Trading margins—currently capped at Rs0.07/kWh—have become contentious, with state regulators advocating for even lower rates.

Analysts believe this policy could scale up renewable energy development by combining public sector credibility with private sector efficiency, but it will require robust checks to ensure national policy objectives are upheld.