SEBI clarified that renewable energy projects awarded through competitive bidding qualify as PPP projects under InvIT regulations. This ruling emphasizes the risk allocation between public authorities and private SPVs.
SEBI Clarifies Status of Renewable Energy Projects under InvIT Regulations
On May 27, 2026, SEBI issued a clarification stating that renewable energy projects awarded through a tariff-based competitive bidding process by government entities qualify as Public-Private Partnership (PPP) projects under the InvIT Regulations. This clarification delineates the compliance landscape for future energy infrastructure projects.
The ruling indicates that such projects, which involve public authorities and private Special Purpose Vehicles (SPVs) with risk-sharing under Power Purchase Agreements (PPAs), meet the criteria set forth in the InvIT framework. This is crucial for attracting private investment in renewable energy, which aligns with broader governmental sustainability objectives.
Legal practitioners and project developers should be aware of this development as it may facilitate a more favorable investment climate for renewable energy initiatives within the PPP framework, potentially leading to increased financing opportunities.