Renewable energy developers get one-time exit for unused grid connectivity

New Delhi: The power sector regulator has allowed renewable energy developers to surrender, transfer or retain unused interstate transmission connectivity under a one-time framework which aims to release stranded grid capacity for projects that are ready for commissioning.

In a suo moto order, the Central Electricity Regulatory Commission said developers that have got transmission connectivity but are yet to tie up power purchase agreements (PPAs) or commission projects can either convert their connectivity to the land route by furnishing a fresh performance bank guarantee, surrender the connectivity for reallocation, or transfer it to another generating project within the same corporate group that requires grid access.

The regulator estimates 15.7 GW of interstate transmission connectivity could be released through the move.


"This framework will provide the exit route to the renewable energy developer by surrendering connectivity, which will help them move away from the existing planned project," an industry official said.

The regulator said a significant volume of renewable energy projects awarded between 2019 and 2025 remain without offtake arrangements, locking up valuable transmission capacity by projects that may not progress. Under the order, developers opting to retain connectivity without a PPA will have to furnish a performance bank guarantee of ₹8 lakh per MW and commission their projects in 24 months.