India revokes grid access for 17 GW of clean energy projects, says source

India has cancelled grid access for nearly 17 gigawatts (GW) of delayed clean energy projects to prioritise connections for those that are operational or nearing completion, according to a source familiar with the matter and official documents reviewed by Reuters.

The state-run Central Transmission Utility of India Ltd (CTUIL) informed companies including Adani Green Energy, ReNew Power, NTPC, Avaada Group, JSW Energy, and ACME Solar about the cancellations, the documents show.

The affected projects are located in renewable-rich states such as Rajasthan, western Gujarat, and Madhya Pradesh in central India, according to a document from the federal agency overseeing inter-state transmission access.

The grid access terminations were carried out in the June quarter after prior notices were issued to the companies, said the source, who requested anonymity as the firms are seeking relief from the federal power regulator, the Central Electricity Regulatory Commission (CERC).

India's surging power demand - driven by rising incomes, mechanised farming, industrialisation, and urbanisation - has prompted New Delhi to streamline grid rules to better integrate clean energy projects and ensure uninterrupted electricity supply for its 1.4 billion people.

The country aims to have 500 GW of non-fossil fuel power capacity by 2030. However, its transmission network, spanning about 495,000 circuit kilometres, is lagging the growth in generation capacity.

The Central Transmission Utility conducted manual inspections before revoking access and will continue efforts to free up transmission lines for projects that are on track for completion, the official said.

JSW Energy appealed the revocation, but the regulator declined to grant interim relief, according to an order dated June 24, and on July 10 asked CTUIL to share its response. The petition is listed for October 7, according to orders posted on the CERC website.

"There is no connectivity revocation on account of delay in project commissioning dates," a spokesperson for Adani said, without providing further details.

The other companies and the CTUIL did not respond to Reuters emails seeking comment.

Last week, India tightened rules to curb trading of grid access by barring developers from changing the source of generation after securing connectivity.

The CERC also mandated that project promoters must retain control until commissioning. Violations could lead to forfeiture of bank guarantees and revocation of connectivity.

(Reporting by Sethuraman NR; Editing by Nidhi Verma and Sonali Paul)