Why it’s worth suspending your scepticism of India’s multi-GW MoUs

Facebook
Twitter
LinkedIn
Reddit
Email

As a Scot, I'm always wary about the acronym IOU. It's pretty much meaningless and could be interpreted as “when I don't pay you back, this post-it note awards you the moral high ground”.

The moral high ground doesn't pay the bills of course. I extend this scepticism to the initials MoU. If an agreement between two institutions, be they public or private sector, has only gotten so far as a memorandum of understanding, we at PV Tech tend to interpret that as “this is not yet news”.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

MoUs might place obligations on one another that neither party wants to back down on. But the fact of the matter is that these obligations are based on face-saving and reputation, not contract law and the repercussions that follow straying from it.

Despite this, we've reported on a number of MoU for multi-gigawatt solar deployment in India in recent weeks – Reliance Power, Adani, Essel Group and before that SunEdison's manufacturing proposals.

One MoU may not in and of itself be that interesting but a series, as in India, suggests that something is afoot.

That something is the Prime Minister Modi-sponsored RE-Invest Summit underway this week. Heavyweight investors lured by the high-level attendees will be gathered under one roof with the solar pipeline the main attraction.

Companies looking to find investors need a pipeline to sell them. Publicly positioning yourself at the front of the queue for a state's solar parks is an important step towards having something tangible to show investors that you're a good bet.

Having an ambition to develop 4GW of solar in Gujarat is one thing. Having any old MoU detailing that an ambition is another; I could write an MoU now countersigned by my PV Tech colleague Ben Willis stating our intention to co-develop 4GW of solar in Gujarat.

Having a very public commitment from the chief minister of any Indian state, or from that minister's power distributor, is quite a different thing. No one can doubt the ambition of India's Union and state governments to deploy huge amounts of solar. If the RE-Invest meeting in New Delhi successfully links up investors for the intended projects in these MoUs, then their value to those shopping for projects will be proven.

Read Next

July 31, 2026
Avaada has secured approximately US$1.3 billion in debt to fund a 2.15GW portfolio of hybrid and solar projects in Gujarat and Maharashtra.
July 31, 2026
First Solar reported net sales of US$1.06 billion for Q2 2026, down 4% year-on-year, while reaffirming its full-year 2026 guidance.
July 31, 2026
German energy company RWE has sold its US distributed clean energy generation business to Goldman Sachs.
July 31, 2026
Singapore-based renewable energy developer PCG Global has closed its Pre-Series A financing round, with GenZero, a fully owned decarbonisation investment platform under Temasek, acting as the lead investor.
Premium
July 31, 2026
Anza figures show that the median price for a solar PV module assembled in the US held steady at US$0.3/W in July 2026.
July 31, 2026
Australia's installed cost of utility-scale solar has not fallen at the pace required to reach the country's “ultra-low-cost solar” (UCLS) ambitions, despite continued progress in cell and module efficiency.

Upcoming Events

Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
April 20, 2027
Istanbul, Türkiye