Power Ministry Issues Draft Guidelines to Designate REIAs
POWER & RENEWABLE ENERGY

Power Ministry Issues Draft Guidelines to Designate REIAs

The Ministry of Power (MoP) has released draft guidelines for designating a company as a Renewable Energy Implementing Agency (REIA). Stakeholders can submit their comments and suggestions within 15 days. 

REIAs, as market makers, are responsible for carrying out the renewable energy project bidding process, signing power sale agreements with developers and power purchase agreements with the distribution licensees or consumers, and ensuring payment security to developers. 

Eligibility Criteria 
The applicant company should have a valid Category-l electricity trading license issued by the Central Electricity Regulatory Commission (CERC). 
It must demonstrate a net worth comprising subscribed capital and reserves exceeding ?5 billion (~$57.6 million). The company should also possess a long-term credit rating of A or higher and receive approval from its board of directors for designation as REIA. 

Period and Termination 
The company will be designated as a REIA for five years at a time, subject to termination by the government if it does not perform its duties as per the relevant rules and guidelines. 

If any company’s designation as REIA is terminated, it must continue to meet its obligations to the developers and procurers as outlined in the bidding documents and agreements until they are concluded. 

The MoP may modify these guidelines in consultation with the Ministry of New and Renewable Energy. 

The designated REIA must adhere to the procurement process according to the guidelines established under the Electricity Act of 2003. The procurement process should be conducted solely through the e-bidding platforms designated by the CERC. 

The Ministry of New and Renewable Energy has set a target of project bids of a cumulative 50 GW annually for the financial years 2024-28, which includes at least 10 GW of wind tenders, for the four REIAs. 

In the financial year 2024, the REIAs collectively issued 53.32 GW of renewable energy tenders, or 6.6% more than the target of 50 GW. Of the 10 GW tenders reserved for wind projects,11.6 GW were issued.   

The Ministry of Power (MoP) has released draft guidelines for designating a company as a Renewable Energy Implementing Agency (REIA). Stakeholders can submit their comments and suggestions within 15 days. REIAs, as market makers, are responsible for carrying out the renewable energy project bidding process, signing power sale agreements with developers and power purchase agreements with the distribution licensees or consumers, and ensuring payment security to developers. Eligibility Criteria The applicant company should have a valid Category-l electricity trading license issued by the Central Electricity Regulatory Commission (CERC). It must demonstrate a net worth comprising subscribed capital and reserves exceeding ?5 billion (~$57.6 million). The company should also possess a long-term credit rating of A or higher and receive approval from its board of directors for designation as REIA. Period and Termination The company will be designated as a REIA for five years at a time, subject to termination by the government if it does not perform its duties as per the relevant rules and guidelines. If any company’s designation as REIA is terminated, it must continue to meet its obligations to the developers and procurers as outlined in the bidding documents and agreements until they are concluded. The MoP may modify these guidelines in consultation with the Ministry of New and Renewable Energy. The designated REIA must adhere to the procurement process according to the guidelines established under the Electricity Act of 2003. The procurement process should be conducted solely through the e-bidding platforms designated by the CERC. The Ministry of New and Renewable Energy has set a target of project bids of a cumulative 50 GW annually for the financial years 2024-28, which includes at least 10 GW of wind tenders, for the four REIAs. In the financial year 2024, the REIAs collectively issued 53.32 GW of renewable energy tenders, or 6.6% more than the target of 50 GW. Of the 10 GW tenders reserved for wind projects,11.6 GW were issued.   

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