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CERC Allows Paid Extensions To Renewable Grid Connectivity
POWER & RENEWABLE ENERGY

CERC Allows Paid Extensions To Renewable Grid Connectivity

The Central Electricity Regulatory Commission (CERC) has permitted renewable energy developers that miss project milestones to seek up to 12 months of additional time to retain inter?state transmission connectivity. The move replaces the previous General Network Access regime under which missing land, financial closure or commercial operation deadlines could lead to revocation of connectivity and encashment of bank guarantees. The regulator said applicants included projects at advanced stages.

The most significant relaxation applies to commissioning, where developers missing their commercial operation date can retain connectivity by paying a Milestone Extension Charge (MEC). The MEC is Rs3,000 per megawatt (MW) per day for the first six months, rises to Rs3,300, Rs3,600 and Rs3,900 in the seventh, eighth and ninth months respectively, and doubles to Rs6,000 per MW per day in months 10 to 12. The extension cannot exceed 12 months and connectivity for the affected capacity will be revoked if commercial operation is not achieved.

CERC has also allowed paid extensions for earlier milestones. Developers may secure up to three months for land compliance with charges rising from Rs1,000 per MW per day to Rs1,200, and up to six months for financial closure with the MEC starting at Rs1,000 and increasing to Rs1,300 in the sixth month. Relief is restricted to projects that can demonstrate tangible progress and satisfy eligibility criteria to prevent routine use.

For land and financial closure extensions developers must hold documents for at least 20 per cent of required land, while commissioning extensions require 75 per cent land under the land or land?BG route and 50 per cent under the LoA/PPA route, together with contracts for major equipment and civil and electrical works. CERC rejected requests to exempt projects where delays were beyond developers' control and said the charge will apply irrespective of reasons to avoid one developer blocking access for others. Industry welcomed the change and the regulator finalised the mechanism after receiving stakeholder comments.

The Central Electricity Regulatory Commission (CERC) has permitted renewable energy developers that miss project milestones to seek up to 12 months of additional time to retain inter?state transmission connectivity. The move replaces the previous General Network Access regime under which missing land, financial closure or commercial operation deadlines could lead to revocation of connectivity and encashment of bank guarantees. The regulator said applicants included projects at advanced stages. The most significant relaxation applies to commissioning, where developers missing their commercial operation date can retain connectivity by paying a Milestone Extension Charge (MEC). The MEC is Rs3,000 per megawatt (MW) per day for the first six months, rises to Rs3,300, Rs3,600 and Rs3,900 in the seventh, eighth and ninth months respectively, and doubles to Rs6,000 per MW per day in months 10 to 12. The extension cannot exceed 12 months and connectivity for the affected capacity will be revoked if commercial operation is not achieved. CERC has also allowed paid extensions for earlier milestones. Developers may secure up to three months for land compliance with charges rising from Rs1,000 per MW per day to Rs1,200, and up to six months for financial closure with the MEC starting at Rs1,000 and increasing to Rs1,300 in the sixth month. Relief is restricted to projects that can demonstrate tangible progress and satisfy eligibility criteria to prevent routine use. For land and financial closure extensions developers must hold documents for at least 20 per cent of required land, while commissioning extensions require 75 per cent land under the land or land?BG route and 50 per cent under the LoA/PPA route, together with contracts for major equipment and civil and electrical works. CERC rejected requests to exempt projects where delays were beyond developers' control and said the charge will apply irrespective of reasons to avoid one developer blocking access for others. Industry welcomed the change and the regulator finalised the mechanism after receiving stakeholder comments.

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