India’s renewable energy groups have objected to a regulatory proposal that could strip developers of interstate transmission system connectivity if long-term power purchase agreements are not timely signed, letters to the power regulator showed.
The groups said the Central Electricity Regulatory Commission’s (CERC) move would unfairly penalise projects stalled for reasons beyond their control.
A CERC staff paper issued in November said more than 45 GW of renewable capacity currently holds grid connectivity based on letters of award but has not progressed to power purchase agreements, blocking transmission bays needed for new projects.
The paper proposed options such as auctioning surrendered capacity and deeming connectivity surrendered if PPAs remain unsigned for more than 12 months.
India aims to add 500 GW of non-fossil capacity by 2030, but delays in project execution and transmission constraints have emerged as major hurdles.
The country’s transmission network — about 495,000 circuit kilometres — is struggling to keep pace with the rapid growth in renewable generation.
The National Solar Energy Federation of India said auctioning vacated connectivity at a premium would raise tariffs and favour financially stronger players, arguing that grid access “cannot become a tradable commodity.”
