India Allows Renewables To Pay To Retain Grid Connectivity
POWER & RENEWABLE ENERGY

India Allows Renewables To Pay To Retain Grid Connectivity

The Central Electricity Regulatory Commission (CERC) has allowed clean energy developers to pay to retain grid connectivity rights after missing project deadlines, replacing automatic disconnection with a fee-based extension. The regulator issued the order at the weekend after several companies sought more time for delayed projects that remain under development. The move follows the grid planning authority serving disconnection notices to projects that had not progressed and reflects concerns about efficient use of limited transmission capacity.

Under the order, power producers may obtain extra time for meeting land and financing requirements and for commissioning by paying specified daily charges. Developers will pay Rs1,000 per megawatt (MW) per day for delays related to land and financing and Rs3,000 per MW per day for delays in starting commercial operations. The fees are intended to deter speculative holding of grid capacity while allowing projects struggling for objective reasons to continue.

Companies can be granted up to three additional months to complete land requirements, six months to secure financing and up to 12 months to commission projects, the regulator said. Projects that still fail to meet revised deadlines risk losing their grid connectivity and associated bank guarantees. The regulator emphasised that unused grid capacity can prevent other projects from accessing the transmission network and hamper overall system efficiency.

Several clean energy projects have been stalled in India owing to shortages of transmission infrastructure, slowing commissioning despite broader policy goals. India is aiming to add about 500 gigawatt (GW) of non-fossil fuel based power from about 300 GW at present, underscoring the scale of the challenge. The rule change seeks to balance the need to clear stalled capacity for active projects with giving developers limited, conditional leeway to complete viable schemes.

The Central Electricity Regulatory Commission (CERC) has allowed clean energy developers to pay to retain grid connectivity rights after missing project deadlines, replacing automatic disconnection with a fee-based extension. The regulator issued the order at the weekend after several companies sought more time for delayed projects that remain under development. The move follows the grid planning authority serving disconnection notices to projects that had not progressed and reflects concerns about efficient use of limited transmission capacity. Under the order, power producers may obtain extra time for meeting land and financing requirements and for commissioning by paying specified daily charges. Developers will pay Rs1,000 per megawatt (MW) per day for delays related to land and financing and Rs3,000 per MW per day for delays in starting commercial operations. The fees are intended to deter speculative holding of grid capacity while allowing projects struggling for objective reasons to continue. Companies can be granted up to three additional months to complete land requirements, six months to secure financing and up to 12 months to commission projects, the regulator said. Projects that still fail to meet revised deadlines risk losing their grid connectivity and associated bank guarantees. The regulator emphasised that unused grid capacity can prevent other projects from accessing the transmission network and hamper overall system efficiency. Several clean energy projects have been stalled in India owing to shortages of transmission infrastructure, slowing commissioning despite broader policy goals. India is aiming to add about 500 gigawatt (GW) of non-fossil fuel based power from about 300 GW at present, underscoring the scale of the challenge. The rule change seeks to balance the need to clear stalled capacity for active projects with giving developers limited, conditional leeway to complete viable schemes.

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