Slow bidding for RE projects threatens climate goals

India’s contribution to mitigating global warming may stutter unless the recent slowdown in the auction of renewable projects reverses.

- S DINAKAR

The world’s third-biggest polluter has slashed conducting auctions for awarding renewables capacity at utility level in 2025-26 (FY26), the lowest since FY21, after several high-profile awards failed to find purchasers for electricity to be produced by these projects. The capacity bid by federal agencies has declined over 15 Gw in April-September from the first half of FY25, industry sources said.

A capacity of around 40.2 Gw was auctioned in FY25, following a record 47.3 Gw in FY24, according to Icra Research, based on government data.

Renewable installations will exceed 35 Gw this financial year, a record, supported by aggressive auctions in the last two financial years, according to Icra. (“Auctioned” means when an auction has been completed and winners decided, but power purchase agreements, or PPAs, may be pending. Installations typically happen once utilities sign the PPAs.)