+
Regulator Allows Paid Extensions To Renewable Grid Access
POWER & RENEWABLE ENERGY

Regulator Allows Paid Extensions To Renewable Grid Access

The Central Electricity Regulatory Commission has introduced a framework allowing renewable developers extra time to retain inter-state transmission connectivity in exchange for escalating charges. Projects may seek up to 12 months of paid extension through Milestone Extension Charges to avoid derailing substantially advanced works. The measure aims to balance scarce connectivity with demonstrated project progress.

The approach replaces the prior General Network Access regime under which missed deadlines for land, financial closure or commercial operation could prompt revoked connectivity and encashed bank guarantees. The regulator received requests from developers facing enforcement and determined that graded compensation should be allowed irrespective of delay reasons. It said entities holding connectivity can block access for others and therefore additional time with payment is warranted.

For commissioning, the Milestone Extension Charge will start at Rs 3,000 per Megawatt (MW) per day for the first six months, rise to Rs 3,300-3,900 in months seven to nine and double to Rs 6,000 per MW per day in months 10-12. The extension cannot exceed 12 months and if full or part capacity still fails to achieve commercial operation, connectivity will be revoked. The regulator has also opened paid windows for earlier milestones.

Developers may seek up to three additional months for land compliance, with charges rising from Rs 1,000 per MW per day to Rs 1,200 per MW per day. Financial closure extensions run up to six months with charges starting at Rs 1,000 per MW per day and rising to Rs 1,300 in the sixth month. Relief is limited to projects that demonstrate tangible progress and meet eligibility criteria.

The criteria require documents for at least 20 per cent of required land for land and financial closure extensions. Commissioning extensions require 75 per cent land under the land or land-BG route and 50 per cent under the LoA/PPA route, with contracts for equipment and civil and electrical works. The regulator finalised the mechanism after consulting stakeholders, and industry participants said the change should reduce execution risk.

The Central Electricity Regulatory Commission has introduced a framework allowing renewable developers extra time to retain inter-state transmission connectivity in exchange for escalating charges. Projects may seek up to 12 months of paid extension through Milestone Extension Charges to avoid derailing substantially advanced works. The measure aims to balance scarce connectivity with demonstrated project progress. The approach replaces the prior General Network Access regime under which missed deadlines for land, financial closure or commercial operation could prompt revoked connectivity and encashed bank guarantees. The regulator received requests from developers facing enforcement and determined that graded compensation should be allowed irrespective of delay reasons. It said entities holding connectivity can block access for others and therefore additional time with payment is warranted. For commissioning, the Milestone Extension Charge will start at Rs 3,000 per Megawatt (MW) per day for the first six months, rise to Rs 3,300-3,900 in months seven to nine and double to Rs 6,000 per MW per day in months 10-12. The extension cannot exceed 12 months and if full or part capacity still fails to achieve commercial operation, connectivity will be revoked. The regulator has also opened paid windows for earlier milestones. Developers may seek up to three additional months for land compliance, with charges rising from Rs 1,000 per MW per day to Rs 1,200 per MW per day. Financial closure extensions run up to six months with charges starting at Rs 1,000 per MW per day and rising to Rs 1,300 in the sixth month. Relief is limited to projects that demonstrate tangible progress and meet eligibility criteria. The criteria require documents for at least 20 per cent of required land for land and financial closure extensions. Commissioning extensions require 75 per cent land under the land or land-BG route and 50 per cent under the LoA/PPA route, with contracts for equipment and civil and electrical works. The regulator finalised the mechanism after consulting stakeholders, and industry participants said the change should reduce execution risk.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Madhya Pradesh Plans Airport Every 150 Km, Airstrip Every 75 Km

The Madhya Pradesh government plans to establish an airport every 150 km, an airstrip every 75 km and a helipad every 45 km, according to the state aviation department. Airports being developed in Ujjain and Shivpuri are expected to take the state’s airport count to 10. The government stated that Madhya Pradesh currently has eight airports in eight cities. The locations named by the department include Indore, Bhopal, Jabalpur, Gwalior, Khajuraho, Rewa and Satna. The state also has more than 20 airstrips and 220 helipads, while permanent helipads are planned in all 230 Assembly constituencies..

Next Story
Infrastructure Transport

West Bengal Plans Four Airports for 2028 Completion Under UDAN

West Bengal will develop four new airports under an agreement signed between the Union Civil Aviation Ministry and the state government, with all facilities targeted for completion by 2028. Union Civil Aviation Minister K Rammohan Naidu said the airports would be located at Charra in Purulia, Kalaikunda in Paschim Medinipur, Balurghat in Dakshin Dinajpur and Hasimara in Alipurduar. The project is part of the Centre’s regional connectivity UDAN programme. The Union government has committed Rs. 290 bn for West Bengal’s aviation sector over the next decade, while the state government will pro..

Next Story
Infrastructure Transport

Mumbai Airport Bars Russian Airlines as Agent Seeks Ministry Intervention

Mumbai airport has stopped accepting cargo booked on Russian flag carrier Aeroflot, disrupting shipments and prompting the airline’s cargo sales agent, Delmos Aviation, to seek intervention from the Ministry of Civil Aviation. The restrictions also affect cargo booked on Volga-Dnepr Airlines, according to a letter submitted by Delmos Aviation to the ministry on September 30. Aeroflot operates daily flights between Moscow and Delhi and runs a winter seasonal service to Goa. Bonded cargo from Mumbai and other cities is transported by road to Delhi before being flown to Russia. The agent said t..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code