The Central Electricity Regulatory Commission set aside revocation of grid connectivity for renewable projects by Serentica Renewables India 4 Pvt Ltd and ReNew Green entities and directed payment of compensation for commissioning delays. The Commission emphasised the need to protect transmission infrastructure while ensuring regulatory compliance. Relief was conditional and linked to specified penalties.

The dispute began after the Central Transmission Utility of India Limited revoked connectivity on the ground that projects had not been commissioned within timelines under the General Network Access regulations. The developers contested the action, arguing they were transitioned entities and that the six-month revocation period should be measured from the new connectivity start date granted during transition rather than from the scheduled date of commercial operation (SCOD). They cited uncontrollable factors including unprecedented rainfall that halted construction for more than 100 workdays, right of way issues, farmer protests and clearance delays.

The petitioners said projects were at advanced stages with multiple wind turbine generators erected and substantial capital deployed, noting investments of around Rs 11,870 million (mn) by Serentica and about Rs 26,810 mn by ReNew. CTUIL maintained that transitioned developers became deemed applicants bound by the regulations and that the grant of connectivity did not alter original commissioning timelines. The transmission utility argued it lacked authority to relax statutory provisions and that revocation followed the prescribed procedure when deadlines were missed.

After review CERC found that Regulation 24.6 applies to transitioned entities but identified a gap in the transition process that left the scheduled date of commercial operation undefined and therefore ruled that the SCOD should be equated to the new connectivity start date in such cases. The Commission set aside the revocation notices under its powers but granted conditional relief requiring payment of compensation linked to delays, beginning with charges equivalent to 50 per cent of bank guarantees for the first three months and escalating daily penalties thereafter. The Commission capped delay at 15 months and warned connectivity will be revoked if projects are not commissioned within that timeframe, aiming to safeguard investments.