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• CERC has introduced a one-time relief framework allowing renewable energy developers to surrender, transfer, substitute or retain unused interstate transmission connectivity, unlocking over 22 GW of stranded grid capacity.
• The move addresses projects delayed due to the absence of Power Purchase Agreements (PPAs) and Power Sale Agreements (PSAs) despite developers having secured transmission access through competitive bidding.
• Eligible developers have been given a 60-day window to exercise the available options, after which surrendered transmission capacity will be reallocated to projects that are ready for implementation.
• The initiative is expected to improve transmission network utilisation, reduce project delays, accelerate renewable energy deployment and support India's long-term clean energy and grid expansion goals.
The Central Electricity Regulatory Commission (CERC) has approved a one-time relief mechanism aimed at releasing stranded interstate transmission capacity held by delayed renewable energy projects, a move expected to unlock more than 22 GW of grid connectivity for projects ready to move into execution. The regulatory intervention seeks to improve transmission network utilisation while accelerating renewable energy deployment across the country.
The decision addresses a long-standing issue in India's renewable energy sector, where developers had secured transmission connectivity based on Letters of Award (LoAs) issued by renewable energy implementing agencies such as SECI, NTPC, NHPC and SJVN, but were unable to progress because the corresponding Power Purchase Agreements (PPAs) and Power Sale Agreements (PSAs) were not finalised. As a result, substantial interstate transmission capacity remained blocked despite projects failing to advance, preventing newer projects from accessing the national grid.
Under the one-time framework, eligible developers have been granted a 60-day window to choose among four options for their unused General Network Access (GNA). They may surrender the connectivity, transfer it to another eligible project, substitute it with a different project meeting regulatory requirements or retain the connectivity by complying with the prescribed conditions. Capacity surrendered through this mechanism will be made available for fresh allocation to renewable energy projects that are closer to commissioning.
The regulator's decision follows recommendations from the Ministry of Power and builds upon proposed amendments to the Connectivity and General Network Access Regulations, 2022, which sought to address the growing backlog of stalled renewable projects. Industry estimates indicate that more than 22 GW of interstate transmission capacity has remained locked because several projects awarded through competitive bidding did not reach financial closure or secure long-term power procurement agreements.
The relief is expected to benefit developers with projects that have already secured PPAs and are prepared for construction but have been unable to obtain transmission access due to the shortage of available connectivity. By reallocating underutilised grid capacity, the measure is likely to reduce project delays, improve transmission asset utilisation and support faster commissioning of renewable energy projects.
Industry stakeholders have welcomed the move, noting that transmission connectivity has become a critical bottleneck as India scales up renewable energy capacity. The framework is expected to enhance transparency in grid allocation while ensuring that scarce transmission infrastructure is utilised by projects with higher execution certainty. It also aligns with the government's broader objective of accelerating renewable energy deployment to meet national clean energy targets.
With renewable energy capacity expanding rapidly and transmission infrastructure becoming increasingly critical, the one-time relief mechanism is expected to improve project implementation efficiency and strengthen India's renewable energy ecosystem by enabling faster deployment of solar, wind and hybrid power projects.
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