Background

The Ministry of Power, vide its notification in June, 2025, issued the Guidelines for designating a Company as Renewable Energy Implementing Agency (“REIA”) (hereinafter referred to as the “Guidelines”). These Guidelines formalize the framework for designating entities as REIA’s to facilitate the procurement of power from grid-connected renewable energy projects, including solar photovoltaic, wind, wind-solar hybrids, and standalone energy storage systems, through the Tariff-Based Competitive Bidding (“TBCB”) mechanism. REIAs act as intermediary procurers, aggregating power from RE developers and supplying it to distribution licensees or consumers, thereby playing a pivotal role in achieving India’s renewable energy targets.

Salient Features of the Guidelines

Indian Companies registered under the Companies Act, 2013 and holding a valid Category-1 electricity trading license are eligible to become REIA if they have a net worth (excluding revaluation reserve) exceeding Rs. 500 crore and a long term credit rating of ‘A’ or above. The Company must also have the approval of its Board of Directors for designating it as a REIA.

The designated REIA shall follow the procurement guidelines laid out by the Central Government under Section 63 of the Electricity Act, 2003. All procurement shall be exclusively through e-bidding platforms prescribed by CERC. However, until such platforms are officially designated, existing e-procurement platforms with a proven track record and security features may be used. In a bidding process carried out by REIA, it must be ensured that the subsidiary or group company of the REIA do not participate in the bidding process. Further, if there is any change in ownership, merger, or demerger of the designated REIA company, the eligibility criteria must continue to be met even after the change.

These guidelines will apply in designating new REIAs after the date of issuance of these guidelines. Companies such as SECI, NTPC Ltd, NHPC Ltd, and SJVN Ltd., which have already been designated as REIAs, will continue to function as per the earlier orders issued by the Central Government.

The designation of a company as a REIA will remain valid for five years at a time. However, the Central Government reserves the right to terminate the designation before the completion of the term if the REIA fails to fulfil its responsibilities as per the relevant rules, guidelines, or orders of the Central Government. In the event of such termination, the company shall still continue to remain responsible to discharge its duties towards the RE developers and procurers as per the bidding documents and agreements till the tenure of such agreements.

Conclusion

The Guidelines represent a significant step toward streamlining renewable energy procurement and enhancing India’s renewable energy ecosystem. By establishing clear eligibility criteria, operational mandates, and accountability mechanisms, the Guidelines ensure that REIAs operate with transparency, efficiency, and financial robustness. The continued designation of SECI, NTPC, NHPC, and SJVN, alongside the provision for new private sector entrants, fosters competition and scalability in the RE sector. These Guidelines align with India’s ambitious renewable energy targets and net-zero commitments, providing a robust framework to support the rapid deployment of grid-connected RE projects while safeguarding stakeholder interests.