MNRE Approves 500 MW CfD Pilot To Transform Renewable Market

07 Apr 2026 CW Team

Under the mechanism developers may sell electricity directly in the open market and participate in power exchanges rather than depend solely on fixed contracts. A strike price will be discovered through competitive reverse bidding and a central CfD pool will administer daily settlements. When market prices exceed the strike price developers must deposit the excess into the pool and when prices fall short the pool will compensate developers, providing revenue stability while preserving market exposure.

The pilot targets supply of 1,500 megawatt-hour (MWh) of renewable energy each day during non solar hours to meet evening and night time demand when solar output is low. Projects will follow a build own operate model with a contract term of 12 years and a single bidder will not be allowed to win more than 125 MW to maintain competition. Financial gains and losses from market operations will be shared between developers and the CfD pool in a 30:70 ratio and developers must sell any renewable energy certificates and remit proceeds to the pool.

To support daily settlements the government has created a CfD Stabilization Fund of Rs 2,760 million (mn) to act as a buffer, which SECI will maintain over the 12 year period and replenish from its resources if required. SECI may retain up to 25 per cent of pool profits to cover administrative costs but will be barred from withdrawals during the first two years. The pilot will test adaptability of the CfD model in India and is expected to encourage market participation and improve integration of renewable generation with the power system.

The Ministry of New and Renewable Energy (MNRE) has approved a pilot Contract for Difference (CfD) scheme to change the renewable energy procurement framework in India, the decision set out in an office memorandum dated 30 March 2026. The Solar Energy Corporation of India (SECI) will act as nodal agency to manage the initiative, which covers 500 megawatts (MW) of capacity. The move is intended to shift procurement away from fixed power purchase agreements and towards a market driven system. Under the mechanism developers may sell electricity directly in the open market and participate in power exchanges rather than depend solely on fixed contracts. A strike price will be discovered through competitive reverse bidding and a central CfD pool will administer daily settlements. When market prices exceed the strike price developers must deposit the excess into the pool and when prices fall short the pool will compensate developers, providing revenue stability while preserving market exposure. The pilot targets supply of 1,500 megawatt-hour (MWh) of renewable energy each day during non solar hours to meet evening and night time demand when solar output is low. Projects will follow a build own operate model with a contract term of 12 years and a single bidder will not be allowed to win more than 125 MW to maintain competition. Financial gains and losses from market operations will be shared between developers and the CfD pool in a 30:70 ratio and developers must sell any renewable energy certificates and remit proceeds to the pool. To support daily settlements the government has created a CfD Stabilization Fund of Rs 2,760 million (mn) to act as a buffer, which SECI will maintain over the 12 year period and replenish from its resources if required. SECI may retain up to 25 per cent of pool profits to cover administrative costs but will be barred from withdrawals during the first two years. The pilot will test adaptability of the CfD model in India and is expected to encourage market participation and improve integration of renewable generation with the power system.

Infrastructure Transport

06 Aug 2026

Surya Roshni delivers customised lighting for NCRTC RRTS stations

Surya Roshni has supplied customised indoor lighting solutions for 18 elevated stations on the National Capital Region Transport Corporation's (NCRTC) Rapid Rail Transit System (RRTS), strengthening its presence in India's infrastructure lighting segment.The project involved the design and deployment of lighting systems for platforms, concourses, foot overbridges (FOBs) and back-of-house (BOH) areas. According to the company, the luminaires were developed specifically to meet NCRTC's design, operational and performance requirements rather than using standard products.Surya introduced two custo..

Real Estate

06 Aug 2026

Hilton debuts Tapestry Collection brand in Vietnam

Hilton has opened NHAAN Resort & Spa Hoi An, Tapestry Collection by Hilton, marking the debut of the Tapestry Collection brand in Vietnam and expanding its lifestyle hospitality portfolio in Southeast Asia.Located along the Co Co River in Cam Thanh village, the 174-key resort provides access to Hoi An Ancient Town, Cua Dai Beach and the Cam Thanh Nipa Forest. The property has been designed by Vietnamese architect Vo Trong Nghia, incorporating biophilic architecture, locally sourced materials and riverfront landscapes.The resort offers a mix of guest rooms and suites, including family-frien..

Building Material

06 Aug 2026

Electrent expands lithium energy storage system portfolio

Electrent Energy has expanded its lithium-based energy storage portfolio with the launch of the ESS 850 and ESS 1050, targeting compact and maintenance-free power backup solutions for Indian homes.The new systems integrate a Home UPS and a LiFePO4 lithium battery into a single unit, extending the company's product range following the launch of its ESS 1350 and ESS 2500 models.Designed for apartments and smaller homes, the ESS 850 provides up to 1 hour 15 minutes of backup, while the ESS 1050 offers up to 1 hour 45 minutes on a typical 400 W household load. The systems can power essential appli..