Renewable Energy Bidding Slows: Icra Report

New Delhi, Nov 20 (PTI) The bidding activity of renewable energy projects has slowed down sharply in FY26, mainly due to concerns related to transmission connectivity, ratings agency Icra said on Thursday.

In a note, Icra said 47.3 GW of clean energy projects were awarded in FY24 and 40.6 GW in FY25. Whereas in the first eight months of FY26 (April-November), only 5.8 GW of projects have been awarded.

"...bidding activity has slowed sharply in the current year...Further, the unsigned PPA capacity remains sizeable at about 40-45 GW as of date," the agency said.

In a webinar, Girishkumar Kadam, Senior Vice President & Group Head - Corporate Ratings, Icra, said the decline in new project bids and delays in signing power purchase agreements (PPAs) for large RE capacity by central nodal agencies clearly reflects the concerns on the execution related to available transmission connectivity for the RE sector.

He further said reported incidents of grid curtailments in Rajasthan for renewable assets, particularly solar assets, during the solar hours in a few time blocks, due to grid stability requirements, are also an area of concern.

"Hence, a focus on the enhancement of both the storage capacity and grid strengthening within the state as well as at the inter-state level in a time-bound manner remains extremely critical, as the share of renewables increases in the generation mix," he noted.

The outlook for the RE sector remains stable, supported by strong policy initiatives, improving tariff competitiveness and sustainability initiatives by large commercial and industrial customers, Icra stated.