ANNOUNCEMENTS
This report explores the evolving landscape of Power Purchase Agreements (PPAs) in India’s renewable energy sector, highlighting both the challenges and opportunities that influence their structure, execution, and effectiveness. With the Solar Energy Corporation of India (SECI) playing a pivotal role as an intermediary procurer, the study analyzes the dynamics between renewable energy developers and electricity distribution companies (DISCOMs) under long-term PPA and PSA frameworks. The report investigates key contractual elements such as tariff determination, risk allocation, payment security, and legal enforceability, alongside emerging business models like round-the-clock (RTC) and hybrid renewable energy solutions.
Relying on secondary research, the study draws insights from policy documents, regulatory frameworks, financial reports, and academic literature. It examines the impact of market forces, policy interventions, and the financial health of DISCOMs on the long-term viability of PPAs. By comparing fixed tariff and escalation-based models, and evaluating recent case studies, the report identifies gaps and proposes recommendations for strengthening the design and implementation of renewable energy procurement contracts. The findings aim to support policymakers, regulators, and market participants in building a more robust and investor-friendly renewable energy ecosystem in India.
