India’s Inox Green loses grid access for 300 MW wind project as regulator backs revocation

NEW DELHI: Indian clean energy developer Inox Green Energy Services has lost grid connectivity for its 300 megawatt (MW) wind project in Gujarat after failing to complete it on time, a filing with the country’s power regulator showed.

In an order dated Monday, the Central Electricity Regulatory Commission (CERC) upheld the disconnection by the country’s grid connectivity authority, saying that the company failed to achieve financial closure or make significant progress despite repeated extensions.

The connectivity at Bhuj-II pooling station was revoked by the state-run Central Transmission Utility of India Ltd (CTUIL) on March 10 after Inox Green missed commissioning deadlines. CTUIL also encashed bank guarantees worth 35 million rupees (USD394,788.79).

The disconnection underscores the challenges faced by Indian clean energy developers, especially in acquiring land for the projects, while the country’s transmission system is also lagging project additions.

Reuters reported in September that India has cancelled grid access for nearly 17 gigawatts (GW) of delayed clean energy projects to prioritise connections for those that are operational or nearing completion.

Several developers are ramping up clean energy projects in the country, as the South Asian nation looks to double its non-fossil fuel based power capacity to 500 gigawatts.

The power regulator noted in its order that Inox Green had been “holding onto the connectivity for the last six years, which is a scarce resource,” citing tightness prevailing in the country’s transmission network.

Inox Green argued that delays stemmed from land allotment issues, transmission readiness and pandemic disruptions, and sought to retain connectivity.

However, the CERC rejected the plea, saying the developer had “taken undue advantage of the delay in revocation” and directed it to apply afresh if it wants to pursue the project.