In a move aimed at improving the utilisation of India’s power transmission network, the Central Electricity Regulatory Commission (CERC) has directed renewable energy developers to either surrender unused transmission connectivity or provide higher bank guarantees if their projects fail to generate electricity within the stipulated timeline.
The new regulatory framework seeks to address the growing problem of transmission capacity being reserved by renewable energy projects that have not yet become operational, preventing other ready-to-generate projects from accessing the national grid.
According to the CERC’s order issued on July 11, renewable energy companies that are unable to commence power generation can either relinquish their transmission rights or retain them by furnishing additional financial guarantees while continuing project development independently.
The regulator has also introduced greater flexibility by allowing companies to transfer their transmission rights to another generating project within the same corporate group if that project is operational but lacks grid connectivity. The measure is expected to improve the utilisation of existing transmission infrastructure and reduce delays in connecting renewable energy projects.
CERC noted that a substantial amount of renewable energy capacity awarded between 2019 and 2025 has yet to secure power buyers or begin commercial operations. As a result, valuable transmission infrastructure remains blocked by projects that may never be completed.
The Commission estimates that nearly 15.7 GW of transmission connectivity could be released through the new policy, making the capacity available for developers with operational or construction-ready renewable energy projects.
Under the revised mechanism, any surrendered transmission connectivity will first be offered to existing applicants within the same substation cluster. If capacity still remains available, it will be allocated through a transparent auction process, enabling faster utilisation of the national transmission network.
The decision supports India’s ambitious renewable energy expansion plans as the country works towards achieving 500 GW of non-fossil fuel power generation capacity by 2030. Efficient utilisation of transmission infrastructure has become increasingly important as large-scale solar, wind and hybrid energy projects continue to be commissioned across the country.
Industry experts believe the new rules will discourage speculative reservation of transmission capacity while ensuring that operational renewable energy projects receive quicker access to the grid, ultimately improving power evacuation and accelerating India’s clean energy transition.
Disclaimer: This report has been editorially prepared using publicly available information. While every effort has been made to ensure accuracy, unintentional errors or omissions may occur. Readers are encouraged to verify important information through official sources.
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