India Reviews Stalled Renewable Energy Projects to Accelerate Clean-Energy Deployment

The central government has launched a detailed audit of renewable-energy projects that remain stalled due to the absence of power-sale agreements (PSAs). These projects, amounting to 43.9 GW of solar and wind capacity, were awarded earlier but could not move forward because developers were unable to secure buyers for the electricity. The Ministry of New and Renewable Energy (MNRE) will now conduct a case-by-case evaluation of each project.

The audit will focus on identifying reasons for delays, assessing project viability, and determining whether the pending PSAs can still be signed. The government aims to complete this exercise within the next 30–45 days. Officials are also examining whether developers still intend to execute the projects or if cancellations or restructuring may be necessary.

A major factor behind these stalled capacities is the shift in demand from distribution companies (discoms), many of which now prefer renewable power with storage or hybrid configurations to ensure round-the-clock supply. This shift has reduced appetite for standalone wind or solar projects, resulting in unsold capacity and contract delays.

To support smoother project execution, the government is also pushing for timely development of Green Energy Corridor–III, the next phase of transmission and evacuation infrastructure for renewable power. By clearing stuck projects and strengthening grid readiness, the government aims to optimise India’s renewable-energy pipeline and improve real-world implementation of clean-energy commitments.

The 43.9 GW stalled-capacity audit will reset expectations across India's renewable pipeline - developers, discoms and financiers should be planning around the shift toward round-the-clock and hybrid demand, not standalone solar or wind. Our energy-transition and responsible-investment teams help clients rethink pipeline sequencing, PSA strategy and grid-adjacent storage decisions in light of this shift.