India Lets Delayed Renewable Projects Pay to Keep Grid Access

India's regulatory body has granted solar developers with delayed project deadlines an option to pay a fee to retain their grid connectivity, Reuters reported, citing the Central Electricity Regulatory Commission. Grid connectivity is a scarce resource, and the regulator emphasized that space should not be wasted. According to the regulator, if a solar or wind developer misses their own project deadline, they can stay on the list for grid connection but must pay a daily fee of $10.48 per megawatt until their project is completed. The cost triples if the developer delays the start of commercial operations.

However, this relief is temporary. Developers have three months to meet land requirements, six months to secure funds for construction, and 12 months to commission the completed projects, the Central Electricity Regulatory Commission added. Earlier this month, New Delhi announced that wind and solar developers would be exempt from transmission charges if their projects face delays due to transmission capacity constraints.

This relief will only apply to projects with at least seven-year power sale contracts signed by the end of the year.

The Indian government aims to build 500 GW of non-hydrocarbon generation capacity by 2030. Currently, solar power accounts for 29% of the country's non-hydrocarbon generation capacity, with 162 GW installed, but the goal of reaching over 292 GW by 2030 is under threat due to recent legislative changes aimed at reducing dependence on imported solar components from China. While local module capacity is substantial at 200 GW, solar cell manufacturing capacity is limited to just 27 GW.