India allows extension for commissioning of certain solar power projects until December

The sector is grappling with several obstacles, including weak demand for tenders, land acquisition challenges, delays in power purchase agreements and project cancellations.

India’s Ministry of New & Renewable Energy (MNRE) has granted a nine-month extension for the commissioning of certain solar projects by two government agencies, pushing the deadline to the end of December 2025 due to multiple challenges, a document seen by Reuters showed.

In a letter to the Solar Energy Corporation of India (SECI) and the Indian Renewable Energy Development Agency (IREDA), the MNRE cited limited availability of domestically made photovoltaic solar modules, transmission infrastructure issues, and tender-related delays as reasons for the extension.

The SECI and IREDA had requested the extension for projects tendered under the federal government’s Central Public Sector Undertaking (CPSU) Scheme Phase-II.

The scheme aims to set up 12 gigawatts of solar projects by state-run entities, using domestically manufactured solar PV cells and modules, with financial support from the Indian government.

The extension underscores the struggles faced by India’s renewable energy sector as the country targets at least 500 GW of non-fossil power capacity by 2030, up from 172 GW currently.

The sector is grappling with several obstacles, including weak demand for tenders, land acquisition challenges, delays in power purchase agreements and project cancellations.

The country also fell short of its earlier goal of adding 175 GW of renewable energy capacity by 2022, with fossil fuels still accounting for more than two-thirds of total power generated last year.