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MNRE Rules Out Blanket Cancellation of Renewable Projects Without Signed PSAs

The Ministry of New and Renewable Energy (MNRE) has clarified that there will be no blanket cancellation of renewable energy projects with unsigned Power Sale Agreements (PSAs). Instead, each case will be reviewed individually based on grid readiness, transmission capacity, and market feasibility.

Renewable Energy Implementing Agencies (REIAs) have been instructed to categorize projects by their potential to secure PSAs, considering tariff levels, supply configuration, and connectivity timelines. Only projects with minimal prospects of PSA execution may face cancellation after all options are explored.

To expedite PSA signings, the government has urged states to meet renewable purchase obligations, aggregate DISCOM demand before tenders, and promote flexible, grid-friendly projects such as solar-plus-storage and firm renewable energy (FDRE).

As of September 2025, REIAs have issued Letters of Award (LoAs) for 43,942 MW of projects without PSAs, while 24,928 MW have been signed since April 2023. The ministry emphasized that India’s renewable focus is now shifting from rapid capacity addition to grid integration, reliability, and transmission expansion, aligned with the Rs 2.4 trillion plan for the 500 GW renewable energy target.