MNRE Clarifies NOC Exemption For Non-Renewable Power Sale From ESS In FDRE Projects

The Ministry of New and Renewable Energy has issued a crucial clarification on 13 April 2026, addressing a long-standing regulatory concern in Firm and Dispatchable Renewable Energy (FDRE) projects. The ministry has confirmed that developers do not require a No-Objection Certificate (NOC) to sell electricity from Energy Storage Systems (ESS) when the stored energy is sourced from non-renewable power, particularly before the commissioning of associated renewable assets.

This clarification comes as many FDRE projects are executed in phases, where components such as solar plants, wind farms, and Battery Energy Storage Systems (BESS) are commissioned at different timelines. In several cases, BESS infrastructure is completed earlier and is charged using grid power, which may not qualify as renewable energy. The MNRE has reiterated that power discharged from ESS charged using non-renewable sources cannot be classified as renewable energy, and therefore cannot be supplied under renewable Power Purchase Agreements (PPAs).

Earlier, ambiguity around the “Right of First Refusal” clause led some agencies to demand NOCs from procurers before allowing such power sales. The MNRE has now clarified that this clause applies only to renewable energy generated from commissioned solar or wind assets, not to interim non-renewable power discharged from ESS. This removes a major compliance bottleneck and allows developers to monetize storage assets during the pre-commissioning phase.

The directive, approved at the highest level within MNRE and communicated to key agencies like SECI and NTPC, is expected to enhance project flexibility and improve financial viability for FDRE developers. By eliminating unnecessary procedural hurdles, this move strengthens India’s evolving renewable + storage ecosystem and accelerates the deployment of hybrid energy infrastructure across the country.

Resource: Solar Quarter

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