The Ministry of Power has released draft guidelines for designating companies as Renewable Energy Implementing Agencies (REIAs). These guidelines aim to streamline the development of renewable energy projects in line with the Ministry’s Tariff-Based Competitive Bidding (TBCB) Guidelines. These draft guidelines were published on February 11, 2025.
Stakeholders shall furnish their comments on these draft guidelines, if any, to the Ministry by February 26, 2025. The comments may also be emailed at nre.section-mop@gov.in.
Role of REIAs
REIAs play a crucial market-making role in facilitating renewable energy procurement. They act as Intermediary Procurers (IPs), aggregating power from various renewable energy generators and selling it to End Procurers. Their responsibilities include managing the RE project bidding process, signing Power Sale Agreements with developers, and Power Purchase Agreements with distributors/consumers, as well as ensuring payment security to developers.
Eligibility Criteria for REIAs
Companies seeking REIA designation must meet the following criteria:
- Trading License: Possess a valid Category-I electricity trading license issued by the Central Commission.
- Financial Strength: Demonstrate a net worth (subscribed capital and reserves, excluding revaluation reserve) exceeding ₹500 Crore and a long-term credit rating of A or above.
- Board Approval: Secure approval from their Board of Directors for REIA designation.
Key Terms and Conditions
- Procurement Process: Designated REIAs must adhere to procurement processes outlined by the Central Government under Section 63 of the Electricity Act 2003.
- E-Bidding: All procurement must be conducted exclusively through e-bidding platforms approved by the Central Electricity Regulatory Commission (CERC).
Applicability
These guidelines apply to companies designated as REIAs after the issuance date of the guidelines. Existing REIAs (SECI Ltd., NTPC Ltd, NHPC Ltd., and SJVN Ltd.) will continue their roles under previous orders.
REIA designation is granted for a period of five years at a time, subject to termination by the Central Government. The government reserves the right to terminate a company’s REIA designation before the five-year period if it fails to perform its duties according to relevant rules, orders, or guidelines. Even after termination, the company remains responsible for fulfilling its obligations to developers and procurers under existing agreements.
These guidelines aim to create a clear and transparent framework for selecting and operating REIAs, facilitating the efficient and accelerated development of renewable energy projects, and ultimately contributing to India’s clean energy goals.
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