Archive · 18 Jan 2026
CERC's Proposal to Revamp Transmission Connectivity Faces Industry Pushback
The Central Electricity Regulatory Commission (CERC) has proposed changes to how renewable energy projects get connected to the power grid.
Currently, projects can get connected based on a Letter of Award (LoA) or a Power Purchase Agreement (PPA).
The CERC wants to change this so that only projects with signed PPAs or those that win an auction can get connected.
Many private developers and industry groups are worried about this change.
They say it could make projects more expensive, delay their completion, and favor bigger companies.
They also argue that the current system already has enough capacity and that the real problem is delays in signing PPAs.
The CERC's goal is to make better use of the existing grid, but the industry believes the new rules might cause more problems than they solve.
CERC proposes granting transmission connectivity only against signed PPAs or through an auction-based mechanism.
Private developers and industry bodies raise concerns over potential implications for project execution, tariffs, and market competition.
Around 31.8 GW of renewable capacity has connectivity but lacks PPAs, leading to underutilisation of transmission infrastructure.
Stakeholders warn of higher tariffs, limited accommodation for merchant power, and difficulties for intermediary procurers under the new proposals.
REIAs like SECI and NHPC oppose the PPA-only proposal, citing feasibility and timeline uncertainties.
- Who
- Central Electricity Regulatory Commission (CERC), private developers, industry bodies, Renewable Energy Implementing Agencies (REIAs)
- What
- Proposal to revamp transmission connectivity framework for renewable energy projects
- When
- Proposal released on November 25, stakeholder submissions between December 24 and 27
- Where
- India
- Why
- To address underutilisation of transmission infrastructure due to lack of PPAs
- Proposal by
- Central Electricity Regulatory Commission (CERC)
- Proposal Date
- November 25
- Current Connectivity Basis
- Letter of Awards (LoAs) or Power Purchase Agreements (PPAs)
- Proposed Connectivity Basis
- Signed PPAs or Auction-Based Mechanism
- Renewable Capacity Without PPAs
- 42 GW
- Renewable Capacity with Connectivity but No PPAs
- 31.8 GW
- Potential Impact
- Higher tariffs, market competition issues, project execution delays
- Stakeholders' Concerns
- Higher tariffs, limited accommodation for merchant power, difficulties for intermediary procurers