🔆 𝗜𝗻𝗱𝗶𝗮 𝗧𝗶𝗴𝗵𝘁𝗲𝗻𝘀 𝗦𝗼𝗹𝗮𝗿 𝗣𝗿𝗼𝗰𝘂𝗿𝗲𝗺𝗲𝗻𝘁 𝗥𝘂𝗹𝗲𝘀 𝘁𝗼 𝗦𝗮𝗳𝗲𝗴𝘂𝗮𝗿𝗱 𝗤𝘂𝗮𝗹𝗶𝘁𝘆 & 𝗧𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝗰𝘆 🌍⚡
⚡🇮🇳 The Ministry of New & Renewable Energy (MNRE) has issued a strong advisory directing agencies to cancel & reissue solar tenders that offered unrealistically short procurement windows - sometimes just 7 days.
📑 The move enforces strict compliance with General Financial Rules (GFR) & CVC guidelines, ensuring transparency and fair play.
🔍 MNRE flagged such bids as attempts to bypass the Approved List of Models & Manufacturers (ALMM) framework, which safeguards quality and reliability in the solar supply chain.
🏗️ Agencies including SECI, NTPC, SJVNL and others must report corrective actions within 15 days.
From June 2026, all ALMM-listed modules will also require ALMM-certified solar cells - a big step for integrity and sustainability in India’s solar journey. 🌞🌍
Ref: https://mybs.in/2eqm3Xg
Is India’s Renewable Energy Struggling to Find Buyers?
As of March, 2025, the Solar Energy Corporation of India (SECI) has over 6,000 MW of unsold renewable power under various Inter-State Transmission System (ISTS) schemes.
Despite ambitious targets and large-scale auctions, demand isn’t keeping pace.
➡ ISTS Solar Tranche XVI – 450 MW available at ₹2.48/kWh
➡ ISTS Solar Tranche XIV – 1,500 MW available at ₹2.57-₹2.58/kWh
𝗦𝗼, 𝗪𝗵𝗮𝘁’𝘀 𝗛𝗼𝗹𝗱𝗶𝗻𝗴 𝗨𝘀 𝗕𝗮𝗰𝗸?
→ Weak Demand for Tenders – Complex tender structures and transmission delays led to 8.5 GW of undersubscribed projects in 2024.
→ Unsigned Power Agreements – Over 40 GW of projects await power sale agreements (PSAs), including 12 GW from SECI alone. States are reluctant to sign PSAs at higher tariffs when newer projects offer lower rates.
→ Frequent Project Cancellations – 38.3 GW of renewable projects canceled between 2020-24 due to design flaws, location issues, and financial challenges.
𝗪𝗵𝗮𝘁 𝗡𝗲𝗲𝗱𝘀 𝘁𝗼 𝗖𝗵𝗮𝗻𝗴𝗲?
→ Streamline Tender Processes – Simplify structures to attract broader participation.
→ Boost State-Central Coordination – Align policies to address interstate transmission issues.
→ Strengthen Grid Infrastructure – Invest in robust transmission networks.
→ Encourage Discoms & Industry Adoption – Offer better incentives to increase RE demand.
What do you think?
What’s the real issue? Pricing, transmission, policy uncertainty – or something else? Let me know your thoughts in the comments.
PS: Swipe to see details of available power for sale with SECI, along with PSAs signed with various States from Jan 2020 – Dec 2024 and their tariff rates.
Expanding on Abdullah Al Faisal’s take; the government’s recent move to invite bids for ten grid-connected solar power projects, with the Bangladesh Power Development Board (BPDB) as the only offtaker but without an Implementation Agreement (IA) or government guarantee, raises important concerns about project viability and investor trust. The utility's accumulated losses have already passed Tk 45,000 crore and are expected to exceed Tk 1 trillion after 2026 according to the local dailies; if the trends in subsidies and unpaid payments continue.
The Asian Development Bank (ADB) reports that BPDB's ongoing financial weakness, including heavy dependence on budget transfers and delays in setting cost-reflective tariffs, threatens the sustainability of Bangladesh’s energy sector. This aligns with the World Bank’s 2023 evaluation that the fiscal burden on the power sector, which is over 1.5% of GDP annually, mainly results from cost under-recovery and increasing capacity payments.
The lack of a government guarantee also affects how tariffs are set. Risk-averse or speculative bidders will likely add significant premiums to their bids, resulting in unnaturally high bid tariffs. In the past, Bangladesh’s renewable energy projects, such as those offered under the now-ended Quick Enhancement of Electricity and Energy Supply Act, had sovereign-backed IAs or similar protections. Suddenly removing these safeguards damages policy predictability and investor confidence.
One sustainable solution is to implement a Partial Risk Guarantee (PRG) mechanism through institutions like the World Bank’s International Development Association (IDA) or the ADB. Both have frameworks for PRGs that cover political and payment default risks under power purchase agreements, as demonstrated in projects across Sub-Saharan Africa and Southeast Asia. These guarantees can help reconcile government financial limits with what investors are willing to accept.
To improve payment reliability, an escrow and payment security system, which sets aside a revenue stream from distribution companies backed by budget allocations, should be established. This fits with ADB’s suggestions for “tiered security structures” in public utilities, which combine internal cash flows, government buffers, and multilateral credit enhancements.
However, these are only temporary fixes. The main problem is BPDB’s structural insolvency, caused by tariff under-recovery, excess generation capacity, and heavy reliance on subsidies. Unless the utility’s financial structure is overhauled through adjusted tariffs, debt-equity swaps, or separating commercial operations from social responsibilities, the risk level for any future renewable investment will stay high.
Without an IA or similar credit support, investor participation will slow down, financing costs will increase, and Bangladesh’s goals for renewable energy expansion, aiming for 40% of power generation from clean sources by 2041, will be seriously affected.
𝐓𝐡𝐢𝐬 𝐃𝐞𝐩𝐚𝐫𝐭𝐦𝐞𝐧𝐭 𝐢𝐧 𝐲𝐨𝐮𝐫 𝐨𝐫𝐠𝐚𝐧𝐢𝐬𝐚𝐭𝐢𝐨𝐧 𝐦𝐢𝐠𝐡𝐭 𝐛𝐞 𝐡𝐨𝐥𝐝𝐢𝐧𝐠 𝐞𝐯𝐞𝐫𝐲𝐭𝐡𝐢𝐧𝐠 𝐭𝐨𝐠𝐞𝐭𝐡𝐞𝐫.
With project budgets swelling into billions, capital gets projects started, but it’s Procurement that keeps them moving, especially amid rising complexities.
Here’s what we are learning from leaders in Data Centers and Renewables:
💹 Tariffs are squeezing renewables costs: New US solar and aluminum tariffs are increasing costs for clean energy infrastructure by around 30% per component, slowing deployment and inflating budgets
⏳ Lead times remain long: Critical items like transformers, cables, and semiconductors now take 2 to 4 years to deliver, risking serious project delays
🌐 Geopolitical shifts disrupt supply chains: Export controls and tariff shocks are forcing renewables developers to rethink sourcing strategies and move toward friendlier markets
These are not short-term blips. Rising demand for power, AI infrastructure, and ageing grid and data centre networks require foresight.
Here’s what you can do:
✅ Develop procurement strategies 2–5 years ahead
✅ Vet suppliers on resilience, capacity, cost, and sustainability
✅ Secure long-term contracts with flexibility for change
✅ Build scenario plans around tariffs, export delays, and supply chain disruptions
𝐏𝐫𝐨𝐜𝐮𝐫𝐞𝐦𝐞𝐧𝐭 𝐢𝐬𝐧’𝐭 𝐣𝐮𝐬𝐭 𝐛𝐮𝐲𝐢𝐧𝐠. 𝐈𝐭 𝐢𝐬 𝐡𝐨𝐰 𝐲𝐨𝐮 𝐬𝐚𝐟𝐞𝐠𝐮𝐚𝐫𝐝 𝐭𝐢𝐦𝐞𝐥𝐢𝐧𝐞𝐬, 𝐛𝐮𝐝𝐠𝐞𝐭𝐬, 𝐚𝐧𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭 𝐯𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐢𝐧 𝐚𝐧 𝐮𝐧𝐜𝐞𝐫𝐭𝐚𝐢𝐧 𝐰𝐨𝐫𝐥𝐝.
👉 If you’re running Renewables or Data Center projects and want to strengthen your procurement teams, reach out.