CERC allows renewable producers to pay for extended grid connectivity

Power producers can get extra time instead of automatically losing their grid connectivity rights, the CERC said

India's power regulator has allowed clean energy developers to pay more to keep ​their grid connectivity after missing project deadlines, ​instead of losing their access to the transmission network.

Power producers can get extra time instead of automatically losing their grid connectivity rights, the Central Electricity Regulatory Commission (CERC) said in an order over the weekend.

Producers will have to pay 1,000 Indian rupees ($10.48) per megawatt per day to obtain extra time for land and financing requirements and 3,000 rupees per MW per day for delays in starting commercial operations.

The move comes after several companies approached the regulator seeking more time for projects that were delayed but still under development as India's grid planning authority started serving disconnection notices.

 

Grid connectivity is a limited resource and projects holding grid capacity without making progress can prevent others from ​using it, the regulator said.

Several clean energy projects have been stalled in ‌India because of a lack of transmission infrastructure.

Companies can get up to three additional months to ​complete ‌land requirements, six months to secure financing and as much ‌as 12 months to commission projects, the regulator said.

Those that still fail to meet the deadlines risk losing ‌their ​grid connectivity and ​associated bank guarantees.

India is looking to add about 500 gigawatts of non-fossil fuel based power from ‌about 300 GW ​at present.