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The Ministry of Power, Government of India, has issued draft guidelines for designating companies as Renewable Energy Implementing Agencies (REIA). These guidelines aim to accelerate the development of renewable energy projects, particularly in grid-connected solar, wind, and hybrid systems, including those with energy storage. The ministry has invited comments from stakeholders within 15 days of the notification date. Under the guidelines, a Renewable Energy Implementing Agency plays a crucial role in the renewable energy procurement process. These agencies act as intermediaries between power generators and distribution companies. They manage the bidding process for renewable energy projects, sign agreements with developers and buyers, and ensure financial security for developers. To qualify as a REIA, a company must meet specific eligibility criteria. It must hold a valid Category-I electricity trading license issued by the Central Electricity Regulatory Commission (CERC). The company should also have a net worth of more than ?500 crore and a long-term credit rating of A or above. Additionally, the company’s Board of Directors must approve its designation as an REIA. The guidelines specify that all power procurement by REIAs must follow the competitive bidding process outlined by the central government under Section 63 of the Electricity Act, 2003. The bidding must be conducted exclusively through e-bidding platforms approved by CERC to ensure transparency and efficiency. The designation of a company as a REIA is valid for five years, but the central government retains the right to revoke the status if the agency fails to perform its duties as per the regulations. If a REIA’s designation is terminated, it remains responsible for fulfilling its obligations towards renewable energy developers and buyers for ongoing projects until the completion of their contracts. Currently, organizations such as SECI Ltd., NTPC Ltd., NHPC Ltd., and SJVN Ltd. are already designated as REIAs and will continue their roles under previous government orders. The new guidelines will apply to companies seeking designation as REIAs after the issuance of this policy. The guidelines also include provisions for modifications, allowing the Ministry of Power to revise them in consultation with the Ministry of New and Renewable Energy. This flexibility ensures that the framework remains aligned with the evolving needs of the renewable energy sector. The draft guidelines reflect the government’s efforts to streamline the implementation of renewable energy projects and strengthen the regulatory framework for power procurement. Stakeholders, including state governments, power distribution companies, and public sector enterprises, have been invited to submit their feedback before the finalization of the policy. |
