India tells clean energy firms to lose grid connection or generate power

NEW DELHI: India has asked renewable ​energy companies to ​either surrender transmission rights or ​provide higher bank guarantees if they fail to generate power, as the country seeks to free up ‌grid capacity ⁠for ⁠projects that are actually producing electricity, according to ​a regulatory order.

Here are some details:

The companies can ​also transfer transmission rights for their group utility that are generating but does not ​have connectivity to grid, an ⁠order from ‌the Central Electricity Regulatory ​Commission dated ​July 11 said.


A substantial ⁠amount of renewable energy capacity has been ​awarded between 2019-2025 to power producers, ​but most of it does not yet have customers, the CERC said.

As a result, transmission access is being occupied by projects that may not move ‌ahead, and CERC believes about 15.7 GW of this connectivity could be ​released for ​other developers.

⁠Power producers can also retain transmission connectivity, provide additional bank guarantees, but develop the power project ​independently, the CERC said.

Connectivity surrendered will first be offered to existing applicants in the same substation cluster and any remaining capacity will be auctioned.