Renewable energy developers get relief over delayed projects, with riders

New Delhi: Renewable energy developers will now get more time to connect to the interstate power transmission network under revised rules, if they have made sufficient progress on their projects and pay extension charges.

The relaxation has been offered by the Central Electricity Regulatory Commission (CERC) under the revised general network access (GNA) regulations. GNA is a framework that allows power generators and distribution companies to access the interstate transmission system, with developers required to meet specified milestones, such as securing land, achieving financial closure and commissioning the project.

In its August 14 order, CERC allowed limited extensions for land acquisition, financial closure and commercial operation date, while linking the extensions to escalating daily charges.


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The new framework will support projects that show progress by giving a defined window to complete their milestones without allowing transmission connectivity to remain blocked.

The move comes amid transmission connectivity increasingly being held up by projects that were delayed and not yet ready to use it, an industry expert said.

"For developers, it helps with the single-biggest source of regulatory cliff risk in the current framework-the fear that a delay outside their control, on land or financing, could wipe out months or years of project development work and capital already committed," said Srivatsan Iyer, Global CEO, Hero Future Energies.

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For the land milestone, developers can seek up to three months of additional time, provided they have documents for at least 20% of the required land. The extension charges will be ₹1,000/MW/day in the first month, rising to ₹1,100 and ₹1,200 in the second and third months, respectively.

Connectivity will be revoked if the milestone is not met within the three-month extension, according to the revised rules.

Financial closure can be extended by up to six months, subject to the same 20% land documentation requirement. Charges here start at ₹1,000/MW/day and rise progressively to ₹1,300/MW/day.

The longest extension, of up to 12 months, is available for date of commissioning.