India renewable energy groups oppose plan to revoke grid access for projects without power purchase deals

Industry groups in India are opposing plans to revoke grid access for projects without power purchase deals. They cite state-level delays as the primary cause.

Major industry bodies representing the Renewable energy sector in India ININ have formally voiced their opposition to a recent regulatory move by the Central Electricity Regulatory Commission (CERC). The pushback follows a staff paper issued by the Central Electricity Regulatory Commission (CERC) in November which proposed measures to revoke Interstate transmission system connectivity from developers who fail to sign long-term power purchase agreements within specific timeframes. This regulatory debate comes as the government attempts to address a significant infrastructure bottleneck involving more than 45 GW of renewable capacity that holds grid connectivity based on letters of award but has not yet progressed to formal power purchase agreements.
The current situation creates a structural constraint on the national ambition for India to reach 500 GW of non-fossil capacity by 2030. According to the CERC, this backlog locks up valuable capacity on the Interstate transmission system, preventing new projects from accessing the grid. The Central Electricity Regulatory Commission (CERC) proposal includes several options to rectify this, such as deeming connectivity surrendered if power purchase agreements remain unsigned for more than 12 months. Another option under consideration is the introduction of premium-based auctions for surrendered capacity to ensure that only the most prepared projects retain access to the grid.
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