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.

Building Material

26 May 2026

Dalmia Cement to Acquire 5.2 MnTPA Capacity

Dalmia Cement (Bharat), a wholly owned subsidiary of Dalmia Bharat, has executed a Business Transfer Agreement with Jaiprakash Associates and Adani Infra (India) to acquire cement assets with 5.2 MnTPA capacity in the Central region.The acquisition covers cement plants located at Rewa in Madhya Pradesh, and Churk, Chunar and Sadwa in Uttar Pradesh. The assets include 5.2 MnTPA cement capacity, 3.3 MnTPA clinker capacity, 99 MW thermal power capacity, railway sidings at Rewa and Chunar, and a common railway siding at Churk. The enterprise value of the transaction is Rs 28.5 billion.Following co..

Infrastructure Urban

26 May 2026

Rampura Agucha Becomes Zinc Mark Certified Mine

Hindustan Zinc’s Rampura Agucha Mine has become India’s first Zinc Mark certified mine, marking a major milestone in responsible zinc production. The mine is the world’s largest underground zinc-lead mine and is operated by Hindustan Zinc, the world’s largest integrated zinc producer.Zinc Mark is a globally recognised assurance framework that validates responsible zinc production against international Environmental, Social and Governance standards, responsible sourcing practices and value chain transparency. The certification strengthens Hindustan Zinc’s ability to offer responsibly ..

Infrastructure Urban

26 May 2026

Headsup B2B Targets Rs 4 bn Revenue This Fiscal

Headsup B2B, a pan-India procurement and supply chain platform serving the infrastructure, industrial and renewable energy sectors, is targeting Rs 4 billion in revenue for the current fiscal year. The company executed over 2,200 transactions worth Rs 2.5 billion in the previous financial year.Allied infrastructure services contributed nearly 80 per cent of revenue during the period, while renewable energy, industrial automation and road safety solutions emerged as the fastest-growing categories. The company is now expanding its role beyond procurement to support installation, deployment and p..