CERC Proposes Relief For Stalled Renewable Projects
POWER & RENEWABLE ENERGY

CERC Proposes Relief For Stalled Renewable Projects

The Central Electricity Regulatory Commission (CERC) has proposed a one-time relief mechanism for renewable energy developers whose projects have stalled after securing interstate transmission connectivity but failing to sign power purchase agreements. The draft seeks to unlock large amounts of unused grid capacity tied to delayed solar, wind and hybrid projects and to allow developers to retain or repurpose connectivity rights.

Over recent years, many developers secured connectivity based on Letters of Award (LoAs) issued by implementation agencies such as SECI, NTPC, NHPC and SJVN, but in many cases, PPAs were not executed, leaving transmission capacity stranded. The regulator has proposed three pathways for affected developers, including a route enabling continuation of projects with a fresh performance bank guarantee of Rs one million (mn) per Megawatt (MW) and revised timelines for land acquisition, financial closure and commissioning.

A second pathway would permit substitution of the original LoA with a different PPA obtained under another renewable tender, while a third would allow surrender of connectivity so the Central Transmission Utility of India Ltd (CTUIL) can reallocate or auction the capacity. The draft introduces auction-based allocation after initial reallocation, with a proposed base auction price of Rs three lakh per MW, equivalent to Rs zero point three million (mn) per MW, linked to guarantees otherwise encashed when connectivity is revoked.

Successful bidders for operational connectivity may be required to commission projects within 12 months, while projects tied to under-construction transmission links may receive up to 24 months, and failure to meet milestones could trigger cancellation and encashment of guarantees. The Ministry of Power had earlier recommended one-time relaxation for legacy projects and industry reaction has been mixed, with some developers warning that additional guarantees could strain smaller firms, while others welcome measures that may improve transmission utilisation. CERC has invited comments on the draft by May 15 and plans a public hearing before finalising the mechanism.

The Central Electricity Regulatory Commission (CERC) has proposed a one-time relief mechanism for renewable energy developers whose projects have stalled after securing interstate transmission connectivity but failing to sign power purchase agreements. The draft seeks to unlock large amounts of unused grid capacity tied to delayed solar, wind and hybrid projects and to allow developers to retain or repurpose connectivity rights. Over recent years, many developers secured connectivity based on Letters of Award (LoAs) issued by implementation agencies such as SECI, NTPC, NHPC and SJVN, but in many cases, PPAs were not executed, leaving transmission capacity stranded. The regulator has proposed three pathways for affected developers, including a route enabling continuation of projects with a fresh performance bank guarantee of Rs one million (mn) per Megawatt (MW) and revised timelines for land acquisition, financial closure and commissioning. A second pathway would permit substitution of the original LoA with a different PPA obtained under another renewable tender, while a third would allow surrender of connectivity so the Central Transmission Utility of India Ltd (CTUIL) can reallocate or auction the capacity. The draft introduces auction-based allocation after initial reallocation, with a proposed base auction price of Rs three lakh per MW, equivalent to Rs zero point three million (mn) per MW, linked to guarantees otherwise encashed when connectivity is revoked. Successful bidders for operational connectivity may be required to commission projects within 12 months, while projects tied to under-construction transmission links may receive up to 24 months, and failure to meet milestones could trigger cancellation and encashment of guarantees. The Ministry of Power had earlier recommended one-time relaxation for legacy projects and industry reaction has been mixed, with some developers warning that additional guarantees could strain smaller firms, while others welcome measures that may improve transmission utilisation. CERC has invited comments on the draft by May 15 and plans a public hearing before finalising the mechanism.

Next Story
Infrastructure Transport

Uttar Pradesh unveils infrastructure-led growth roadmap at RAHSTA

Mumbai, 9 July 2026: Uttar Pradesh’s ambitious infrastructure-led growth strategy took centre stage on Day 2 of the 16th RAHSTA Expo, where senior government officials outlined how expressways, industrial corridors and technology-driven governance are transforming the state into one of India's most attractive investment destinations.Delivering the keynote address, Srihari Pratap Shahi, IAS, Additional Chief Executive Officer, Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), highlighted the state's long-term vision of integrating world-class expressways with industrial dev..

Next Story
Real Estate

NCW closes PRIME Offices Fund at Rs 40 billion

Nuvama and Cushman & Wakefield Management (NCW) has announced the final close of its flagship PRIME Offices Fund at approximately Rs 40 billion, exceeding its original target of Rs 30 billion following strong investor demand.The fund was launched to provide Indian investors with access to institutional-grade commercial office assets across key office markets in the country. According to NCW, the increase in the fund size was supported by strong investor participation and the availability of investment opportunities in India's office sector.The fund has already committed around 45 per cent ..

Next Story
Real Estate

Mayfair Housing adopts Autodesk Forma for digital project planning

Mayfair Housing has entered into a three-year strategic partnership with Autodesk to deploy Autodesk Forma, an AI-enabled cloud platform, as part of its digital transformation programme aimed at improving project planning and execution across its development and redevelopment portfolio.The platform will be integrated into the company's Building Information Modelling (BIM) workflow to support architects, planners and project teams during the early stages of design and development. Autodesk Forma combines real-world data, environmental simulations and collaborative workflows to facilitate data-d..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement