India allows renewable energy developers to pay for grid access extensions

India’s Central Electricity Regulatory Commission (CERC) has introduced a new framework allowing renewable energy developers to pay daily charges to maintain grid connectivity rights after missing project deadlines. This measure aims to prevent developers from losing access to limited grid capacity while still addressing the need to ensure capacity is not held unused.

Under the new rules, developers can seek extensions for specific milestones by paying fees. Extensions for land acquisition and financial closure will incur a charge of Rs 1,000 per MW per day. Delays in commencing commercial operations will attract a higher penalty of Rs 3,000 per MW per day. The allowed extension periods are up to three months for land requirements, six months for financial closure, and up to 12 months for commissioning.

Failure to meet these extended deadlines may still result in the loss of grid connectivity and associated bank guarantees. This regulatory shift comes as India pursues a target of 500 GW of non-fossil fuel-based power capacity, up from approximately 300 GW currently.