India’s power regulator introduces measures allowing renewable project developers to extend grid connectivity rights via daily charges, while tightening rules against capacity hoarding, potentially freeing up 15.7GW of transmission capacity and accelerating the country’s clean energy target.
Shares in Suzlon Energy and Inox Wind gained after India’s power regulator moved to give stalled renewable projects more breathing room on grid access, while tightening the rules enough to stop companies from sitting on scarce transmission capacity without making progress.
According to Reuters, the Central Electricity Regulatory Commission has opened a path for developers to keep connectivity rights alive by paying daily charges rather than losing them immediately. The framework allows extensions for land acquisition, financial closure and commissioning, with charges of Rs 1,000 per megawatt per day for the first two delays and Rs 3,000 per megawatt per day for missed commercial operation deadlines.
The change follows pressure from project developers whose schemes were delayed but still active, even as grid authorities began moving to cancel unused connectivity. Reuters reported that CERC views transmission access as a limited resource, and that projects holding capacity without advancing can block other developers from plugging into the grid. The issue is especially sensitive in India, where clean energy projects have also been slowed by gaps in transmission infrastructure.
Economic Times reported that the regulator is also pushing firms to surrender transmission rights or post larger bank guarantees if they are not generating power, a step that could free up as much as 15.7GW of connectivity for others. Earlier this year, CERC also rejected a plea from three renewable power companies seeking relief from separate bank guarantees for shared grid infrastructure, underlining a harder line on compliance even as it keeps some projects alive. India is targeting roughly 500GW of non-fossil fuel capacity, up from about 300GW now, which makes efficient use of grid access increasingly important.
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