India’s Clean Energy Sector Pushes Back Against Plan to Take Away Grid Connections

India’s Clean Energy Sector Pushes Back Against Plan to Take Away Grid Connections

January 17, 2026

India’s renewable energy industry has strongly opposed a proposed rule that would allow regulators to cancel the grid connections of clean-energy projects if they fail to sign long-term power supply agreements within a set time, saying the move would unfairly punish developers for delays often caused by factors beyond their control. 

Industry groups, including major solar and wind associations, have written to the Central Electricity Regulatory Commission (CERC) to voice their concerns about the November staff paper that suggested revoking interstate transmission system access for projects that haven’t moved from awards to signed power purchase agreements (PPAs). The paper noted more than 45 GW of renewable capacity holds grid access but has not completed PPAs, tying up transmission capacity needed for new projects. It also suggested options such as auctioning off unused connectivity or treating connectivity as surrendered if PPAs remain unsigned for more than 12 months.  Industry representatives argue that strict penalties would harm developers who face delays because of slow tariff approvals and contract sign-offs by state distribution companies, import delays for wind and solar equipment, and other issues outside their control. They warned that auctioning vacated grid slots at premium prices could raise tariffs and favor financially stronger firms, turning grid access into a commodity rather than a right. Wind power associations have described the proposed 18-month deadline for project completion as unrealistic, urging regulators to extend it to 24-30 months to reflect real world supply chain and construction timelines. The Solar Energy Corporation of India also opposed premium-based auctions, saying they could inflate future electricity costs. Instead, industry bodies suggested reallocating grid access based on project readiness including land, finances, and equipment rather than highest bids. 

As India targets 500 GW of non-fossil fuel power capacity by 2030, developers emphasized that reinforcing cooperation between CERC, power ministries, and state authorities to speed up PPA signings and address bottlenecks will be more effective than punitive measures.