India Power Purchase Agreement (PPA) Market

India Power Purchase Agreement (PPA) Market Overview:

The India power purchase agreement (PPA) market size reached USD XX Million in 2024. Looking forward, IMARC Group expects the market to reach USD XX Million by 2033, exhibiting a growth rate (CAGR) of XX% during 2025-2033. The market is driven by growing renewable energy adoption, regulatory support, and increasing private sector participation. Long-term contracts ensuring energy security and investment stability, attracting independent power producers and utilities, and evolving green energy transitions and digital innovations are shaping deal structures and risk allocation in the India power purchase agreement (PPA) market share.

India Power Purchase Agreement (PPA) Market Trends:

Private Sector and C&I Demand Growth

India’s commercial and industrial (C&I) sectors are increasingly turning to PPAs to secure reliable and cost-effective electricity. As power costs rise and sustainability targets gain prominence, companies are seeking green energy through direct bilateral contracts. PPAs allow C&I consumers to hedge against future price volatility while meeting environmental goals through access to renewable energy sources. The growing demand for RE100 and net-zero commitments by global corporations operating in India further fuels this trend. Moreover, captive and group captive models under open access enable flexibility and cost savings. This surge in private sector involvement is expanding the market beyond traditional utility buyers and reshaping the dynamics of power procurement. For instance, in April 2025, Sunsure Energy, a prominent independent power producer, finalized a long-term Power Purchase Agreement (PPA) for 11 MWp with JSL Super Steel, a Ghaziabad-based subsidiary of Jindal Stainless. This facility will obtain 11 MWp of solar energy from Sunsure's 49 MWp Solar Project located in Augasi, Uttar Pradesh, as stipulated in the agreement, resulting in a displacement of nearly 40% of its conventional energy use with clean energy. This project will integrate into the Uttar Pradesh State Power Banking Policy, by the state's vision for energy security and effective power management.

Technological and Infrastructure Advancements

The India power purchase agreement (PPA) market growth is also fueled by advancements in grid infrastructure, forecasting tools, and digital trading platforms, which are enhancing the viability and scalability of PPAs in India. Improved grid connectivity, especially for renewable-rich states, allows power to be transmitted efficiently over long distances, enabling more PPAs between distant generators and consumers. Technologies like blockchain, AI-driven forecasting, and smart metering improve demand prediction, scheduling accuracy, and contract performance monitoring. These innovations reduce operational risks and strengthen the trust between generators and offtakers. Furthermore, centralized platforms such as the Green Day-Ahead Market (GDAM) and energy exchanges streamline transactions and improve liquidity. These technological improvements are crucial to facilitating transparent, scalable, and efficient PPA execution across India. For instance, in February 2025, with the Indian Army, NTPC signed a Power Purchase Agreement to supply 200 kW of RE-RTC power from a solar-hydrogen-based microgrid at Chushul, Ladakh, for 25 years.

India Power Purchase Agreement (PPA) Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on type, application, and end use.

Type Insights:

• Block Delivery PPA
• Physical PPA
  • Location
    • Off-Site PPA
    • Type
      • Sleeved
      • Synthetic
    • On-Site PPA
• Portfolio PPA
• Others

The report has provided a detailed breakup and analysis of the market based on the type. This includes block delivery PPA, physical PPA (location (off-site PPA , type (sleeved and synthetic)) and on-site PPA), portfolio PPA, and others.

Application Insights:

• Wind
• Solar
• Hydro
• Geothermal
• Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes wind, solar, hydro, geothermal, and others.

End Use Insights:

• Corporate
• Merchant
• Residential

A detailed breakup and analysis of the market based on the end use have also been provided in the report. This includes corporate, merchant, and residential.

Regional Insights:

• North India
• South India
• East India
• West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India Power Purchase Agreement (PPA) Market News:

• In May 2025, Reliance Power Ltd., led by Anil Ambani, announced that its subsidiary, Reliance NU Suntech, signed a 25-year power purchase agreement (PPA) with the Solar Energy Corp. of India (SECI) for a solar project generating 930 MW AC and incorporating a battery energy storage system (BESS) of 465 MW/1,860 MWh.
• In April 2025, Bhojraj Renewables Energy Private Limited, a subsidiary of CESC Limited, entered into a Power Purchase Agreement with CESC Limited to obtain 300 MW of wind-solar hybrid power. The agreement has a duration of 25 years and a tariff of ₹3.81 per kWh. This agreement demonstrates CESC’s dedication to incorporating renewable sources into its power mix and ensuring long-term cost stability. The agreement underscores a significant increase in capacity within the renewable sector, aiding India’s wider clean energy goals.

India Power Purchase Agreement (PPA) Market Report Coverage:

Key Questions Answered in This Report:

• How has the India power purchase agreement (PPA) market performed so far and how will it perform in the coming years?
• What is the breakup of the India power purchase agreement (PPA) market on the basis of type?
• What is the breakup of the India power purchase agreement (PPA) market on the basis of application?
• What is the breakup of the India power purchase agreement (PPA) market on the basis of end use?
• What is the breakup of the India power purchase agreement (PPA) market on the basis of region?
• What are the various stages in the value chain of the India power purchase agreement (PPA) market? 
• What are the key driving factors and challenges in the India power purchase agreement (PPA)?
• What is the structure of the India power purchase agreement (PPA) market and who are the key players?
• What is the degree of competition in the India power purchase agreement (PPA) market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India power purchase agreement (PPA) market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India power purchase agreement (PPA) market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India power purchase agreement (PPA) industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.