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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Gopalan Metals Enters Building Wires Segment

Gopalan Metals (India) has recently launched Gopalan Wires and Cables, marking its entry into the building wires segment for residential, commercial and industrial applications.The product portfolio currently includes Flame Retardant (FR) and Flame Retardant Low Smoke and Halogen (FRLS-H) PVC house wires. The products are manufactured at the company’s Hoskote facility in Karnataka, which has a production capacity of around 6,000 km of building wires per month.Gopalan Wires and Cables will cater to electrical dealers, distributors, contractors, builders, infrastructure projects, OEMs and end ..

Next Story
Real Estate

KONE India Opens New Office in Jabalpur

KONE India has recently inaugurated a new office in Jabalpur, strengthening its presence and customer reach across Central Madhya Pradesh.The office will serve customers in Rewa, Satna, Singrauli and Katni, while also expanding the company’s reach into emerging markets such as Shahdol and Seoni. It will provide local sales, service and installation support to address growing customer requirements across the region.Amit Gossain, Managing Director, KONE India, said, “Jabalpur is an important market for us, and this new office brings us closer to our customers in the area. As the region conti..

Next Story
Infrastructure Urban

Greenr Opens 12th Outlet at Oberoi Garden City, Goregaon

Greenr has recently opened its newest outlet at Cafés. Restaurants. Bars. within International Business Park, Oberoi Garden City, Goregaon, marking its 12th location in India and further strengthening its presence in Mumbai.The outlet brings together Greenr’s plant-forward food, specialty coffee and community-focused experiences in a format designed for professionals, residents and visitors. The space is intended to support dining, coffee meetings, informal work sessions and social interactions throughout the day.Greenr’s offering combines globally inspired vegetarian cuisine with wellnes..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement