India’s clean energy industry opposes revocation of connectivity over delays

NEW DELHI: India’s renewable energy groups have objected to a regulatory proposal that could strip developers of interstate transmission system connectivity if long-term power purchase agreements are not timely signed,

letters to the power regulator showed.

The groups said the Central Electricity Regulatory Commission’s (CERC) move would unfairly penalise projects stalled for reasons beyond their control.

A CERC staff paper issued in November said more than 45 GW of renewable capacity currently holds grid connectivity based on letters of award but has not progressed to power purchase agreements, blocking transmission bays needed for new projects.

The paper proposed options such as auctioning surrendered capacity and deeming connectivity surrendered if PPAs remain unsigned for more than 12 months.

India aims to add 500 GW of non-fossil capacity by 2030, but delays in project execution and transmission constraints have emerged as major hurdles.

The country’s transmission network — about 495,000 circuit kilometres — is struggling to keep pace with the rapid growth in renewable generation.

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The National Solar Energy Federation of India said auctioning vacated connectivity at a premium would raise tariffs and favour financially stronger players, arguing that grid access “cannot become a tradable commodity.”

It said delays in PPA signing stem largely from slow tariff adoption and approval processes at state distribution companies.

Wind-sector groups, including the Indian Wind Turbine Manufacturers Association and the Indian Wind Energy Association, said the proposed 18-month deadline to complete wind projects is unrealistic.

They noted that turbines and other equipment take long to manufacture and are often imported, adding to delays. They urged CERC to allow 24–30 months to complete projects instead of 18 months.

Government tendering agency Solar Energy Corporation of India also opposed premium-based auctions, warning they could inflate future tariffs.

The SECI suggested reallocating connectivity based on project readiness — land, financial closure and equipment status — rather than awarding it to the highest bidder.

Industry groups urged CERC to shift focus from penalizing developers to ensuring timely signing by working with the power and renewable-energy ministries.