India Tightens Grid Rules for Renewable Energy Firms

India has introduced new rules requiring renewable energy companies to either begin generating electricity, surrender unused transmission rights, or provide higher bank guarantees. The move is aimed at freeing up valuable grid capacity currently held by projects that have not started producing power.

According to an order issued by the Central Electricity Regulatory Commission (CERC), companies may also transfer their transmission rights to other power-generating units within the same corporate group that need grid connectivity. The regulator noted that many renewable energy projects awarded between 2019 and 2025 have yet to secure customers or become operational.

CERC estimates that around 15.7 GW of grid connectivity could be released under the new framework, allowing active projects to access transmission infrastructure more quickly. Any surrendered connectivity will first be offered to existing applicants within the same substation cluster, while any remaining capacity will be allocated through auctions.

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