The Ministry of Power has released new guidelines allowing private sector companies to be designated as Renewable Energy Implementing Agencies (REIAs), a move aimed at enhancing competition and accelerating India's energy transition. Private Indian companies with a net worth exceeding Rs. 500 crore and a long-term credit rating of A or above are now eligible to apply, provided they are registered under the Companies Act.

Previously, only four public sector units—NTPC, SJVN, Solar Energy Corporation of India (SECI), and NHPC, held REIA status. REIAs function as intermediary procurers (IPs) under the tariff-based competitive bidding (TBCB) framework. Their responsibilities include aggregating renewable power from generating companies (Gencos), conducting bidding processes, signing power sale agreements (PSAs) with developers, and power purchase agreements (PPAs) with discoms or consumers. They are also tasked with ensuring payment security for renewable energy developers.

The designation is valid for five years and subject to termination by the Central government. These reforms aim to strike a balance between rapid market development and the principles of affordability, reliability, and equity.