India cancels grid access for 17GW of delayed renewable projects

India has revoked grid access for approximately 17GW of clean energy projects that have faced delays, reported Reuters, citing sources.

The decision is part of an effort to prioritise connections for projects that are operational or nearing completion.

The state-run Central Transmission Utility of India (CTUIL) has notified several companies, including Adani Green Energy, ReNew Power, NTPC, Avaada Group, JSW Energy, and ACME Solar, regarding the cancellations, the report said.

The impacted projects are situated in states with abundant renewable resources such as Rajasthan, Gujarat, and Madhya Pradesh. A federal agency document responsible for overseeing interstate transmission access detailed the locations of these projects.

The terminations of grid access occurred in the June quarter after the companies had been previously warned, and appeals are ongoing with the Central Electricity Regulatory Commission (CERC).

India’s increasing power demand, fuelled by higher incomes, mechanised farming, industrialisation, and urbanisation, has led the government to refine grid regulations.

These adjustments reportedly aim to better integrate clean energy projects and ensure a consistent electricity supply for the nation’s 1.4 billion residents.

The country has set a goal to achieve 500GW of nonfossil fuel power capacity by 2030, but its transmission network, which extends about 495,000 circuit kilometres, is not keeping pace with the growth in generation capacity.

Before revoking access, CTUIL conducted manual inspections and plans to continue efforts to allocate transmission lines to projects that are on schedule for completion.

JSW Energy challenged the revocation, but the regulator refused to grant interim relief, as per an order dated 24 June.

On 10 July, CERC requested CTUIL to provide its response to the appeal, which is scheduled for a hearing on 7 October, according to the CERC website.

In a move to further regulate grid access, India recently tightened rules to prevent the trading of grid access rights.

Developers are now barred from changing the generation source after securing connectivity, and project promoters are required to maintain control until the commissioning of the project.

Any violation could result in the loss of bank guarantees and revocation of connectivity rights.

Recently, India slashed the goods and services tax applicable to solar photovoltaic panels and wind turbine generators from 12% down to 5%.

Industry specialists anticipate that this policy adjustment will reduce the capital cost for solar and wind power projects by approximately 5%.