India’s Clean Energy Industry Pushes Back Against Grid Connectivity Revocation Plan
India’s renewable energy industry has raised strong objections to a proposal by the Central Electricity Regulatory Commission (CERC) that could revoke interstate transmission system connectivity for projects delayed in signing long-term power purchase agreements (PPAs). Industry bodies argue that such penalties would unfairly impact developers facing delays beyond their control, particularly due to procedural bottlenecks at state utilities.
A CERC staff paper noted that over 45 GW of renewable capacity currently holds grid connectivity without progressing to PPAs, blocking transmission infrastructure needed for new projects. To address this, the regulator suggested measures including deeming connectivity surrendered if PPAs are not signed within 12 months or auctioning vacated capacity. However, industry groups warned that auctioning grid access at a premium could push up power tariffs and favour financially stronger players.
Wind and solar associations said project timelines, especially an 18-month completion deadline for wind projects, are unrealistic due to long manufacturing cycles and reliance on imported equipment. Government agency Solar Energy Corporation of India also opposed premium-based auctions, recommending that connectivity be reassigned based on project readiness rather than bidding. Industry bodies urged regulators to focus on speeding up PPA approvals to support India’s goal of adding 500 GW of non-fossil capacity by 2030.
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