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 Energy

05 Jun 2026

India Adds Record 44.61 GW Solar Capacity in FY2026

India’s solar sector reached a milestone in FY2026, with cumulative installed capacity crossing 150 GW and annual additions hitting a record 44.61 GW, exceeding the government target of 34 GW and nearly doubling FY2025’s 23.83 GW. Distributed Renewable Energy contributed 16.3 GW, while PPA and C&I segments accounted for 34 per cent and 30 per cent, respectively.India has risen from 9th globally in 2015 to 3rd in cumulative solar capacity by 2025 and is set to become the world’s second-largest solar market in annual installations in 2026. Seven states, led by Rajasthan and Gujarat, ac..

Real Estate

05 Jun 2026

Abhee Ventures unveils Scottish-themed 45-acre township in Bengaluru

Abhee Ventures, a leading South Indian real estate developer, has announced “Codename New Dimension,” a 45-acre Scottish-themed residential township at Gunjur on Whitefield–Sarjapur Road, Bengaluru. Strategically located between Whitefield and Sarjapur Road, Gunjur benefits from strong connectivity to the Outer Ring Road IT corridor, ITPL, EPIP, the upcoming Dommasandra Metro Station, and the proposed SWIFT City and Peripheral Ring Road.The township, designed in collaboration with London-based UHA London and India’s RSP Architects, offers low-density living with 85 per cent open spaces..

Infrastructure Urban

05 Jun 2026

Hindalco unveils Eternia experience centre for high-performance aluminium windows

Hindalco Industries, the metals flagship of the Aditya Birla Group, has launched its Eternia experience centre in Lajpat Nagar, New Delhi, highlighting its high-performance aluminium window systems designed for India’s evolving construction sector. The company is also expanding its manufacturing footprint in North India with a new Bilaspur facility.Eternia has emerged as one of the fastest-growing brands in system aluminium windows, registering nearly 65 per cent CAGR over the last three years. With a nationwide network of 170+ channel partners across 100+ cities, the brand serves homeowners..