New Delhi: Renewable energy project bidding has dropped sharply in April–November FY26 due to transmission connectivity concerns, ratings agency ICRA said on Thursday.
ICRA noted that while 47.3 GW of clean energy projects were awarded in FY24 and 40.6 GW in FY25, only 5.8 GW have been finalised in April–November FY26. IT highlighted that unsigned power purchase agreements (PPAs) remain high at 40–45 GW.
Speaking during a webinar, Girishkumar Kadam, Senior Vice President & Group Head–Corporate Ratings at ICRA, said the slowdown in bids and delays in PPA signings by central nodal agencies reflect challenges in securing adequate transmission connectivity for renewable projects. He pointed out that instances of grid curtailment in Rajasthan, particularly for solar projects during peak solar hours, have added to sectoral concerns.
He stressed the urgent need to expand storage capacity and strengthen the grid at both state and inter-state levels to support the rising share of renewables in the energy mix.
Despite these challenges, ICRA said the sector’s outlook remains stable, backed by policy support, improving tariff competitiveness & growing sustainability commitments from large commercial and in-dustrial consumers.