A New Era for Renewables: India Welcomes Private REIAs

The Ministry of Power has issued new guidelines allowing private sector companies to be designated as Renewable Energy Implementing Agencies (REIAs)—a move aimed at boosting competition and accelerating India’s clean energy transition. Eligible applicants must be Indian companies registered under the Companies Act, with a net worth of over ₹500 crore and a long-term credit rating of A or above.

Until now, REIA status was exclusively held by four public sector entities: NTPC, SJVN, SECI, and NHPC. As intermediary procurers (IPs) under the tariff-based competitive bidding (TBCB) framework, REIAs are responsible for aggregating renewable energy from generators, managing the bidding process, and executing Power Sale Agreements (PSAs) with developers and Power Purchase Agreements (PPAs) with distribution companies or consumers. They are also tasked with ensuring payment security for renewable energy developers.

The REIA designation will be valid for five years, subject to revocation by the Central government. This reform is expected to foster greater private sector participation, while maintaining a balance between market growth, affordability, reliability, and equity in the renewable energy sector.

News by Rahul Yelligetti.