The government has approved a 500 MW renewable energy pilot under the Contracts for Difference (CfD) model, aimed at strengthening market-based mechanisms in India’s clean energy transition.
The Ministry of New and Renewable Energy (MNRE) has designated Solar Energy Corporation of India (SECI) as the nodal agency to tender the capacity, with projects expected to supply 1,500 MWh of power during non-solar hours each day.
Projects under the pilot will follow the Build-Own-Operate (BOO) model, with a contract duration of 12 years.
A cap of 125 MW per bidder has been introduced to ensure wider participation, while the government will establish a stabilisation fund of ₹760 million to support the mechanism.
In a statement on X, Union Minister Pralhad Joshi described the move as “a transformative step towards a more resilient and market-driven renewable energy future.”
“The approval of the 500 MW Renewable Energy Pilot under the CfD (Contracts for Difference) model marks a significant policy innovation in India’s Clean Energy journey. By introducing a price assurance mechanism, the initiative will help ensure revenue certainty, market stability and greater confidence for renewable energy developers,” Joshi said.
The minister added that the pilot will play an important role in supporting efficient renewable energy integration and advancing India’s vision of achieving 500 GW renewable energy capacity by 2030.
Read also : India’s renewable pipeline expands: 154.83 GW capacity under construction, 47.92 GW in planning stage
