Facing weak demand and financing hurdles, India considers cancelling 42 GW of renewable projects lacking power purchase agreements.
India’s government is reviewing nearly 42 gigawatts (GW) of proposed renewable energy projects that have failed to secure power purchase agreements (PPAs) with state utilities, a move that could lead to the cancellation of almost one-fifth of the nation’s targeted new clean power capacity.
The power ministry has advised authorities to assess the viability of these stranded projects and shelve those that are no longer feasible. Many of the affected projects have received letters of award but remain without confirmed buyers, reflecting a deeper problem of financially stressed state distribution companies that are reluctant to commit to variable renewable power without adequate energy storage solutions.
Officials said the review is not a blanket cancellation but a systematic evaluation aimed at clearing grid congestion and aligning India’s renewable pipeline with its goal of doubling clean energy capacity to 500 GW by 2030. Freeing up transmission capacity could also help accelerate new, more viable solar and wind developments.
Experts say the review underscores a critical challenge for India’s energy transition integrating intermittent renewable power into a grid still heavily dependent on coal. Meanwhile, recent regulatory changes requiring interstate renewable power transfers to pay partial transmission charges starting this year are adding to developer concerns.
While the move could help streamline India’s green energy rollout, it also marks a temporary setback for the world’s third-largest emitter’s ambitious clean energy goals.
