India's Power Regulator Plans Auction of Unused Grid Capacity from Stalled Renewable Projects

India’s power regulator is looking at auctioning transmission capacity that has been lying idle because several renewable projects have not moved ahead with power purchase agreements (PPAs), as per news reports. 

A staff paper from the Central Electricity Regulatory Commission (CERC) shows that 31.8 gigawatts (GW) of connectivity was approved against letters of award but has not been put to use. 

Booked Capacity Left Idle 

Developers usually start project work only after signing PPAs. Many projects secured grid slots but did not complete contracts with electricity buyers, leaving the allocated capacity locked.  

Other projects ready to build cannot access the grid as a result. The paper notes that almost 50 GW of clean energy capacity currently has no buyers, mainly because state power distribution companies have not finalised demand for new renewable supply. 

Measures Under Consideration 

To address the idle capacity, the regulator has outlined multiple options. Projects that have held connectivity for more than a year without signing PPAs may be shifted to a land-linked approval route with fixed deadlines.  

Developers may be asked to provide performance guarantees, swap their letters of award with projects that already have PPAs, or surrender their grid access entirely. Any capacity given up might be auctioned to companies prepared to commission projects within shorter timelines. 

Possible Change in Future Applications 

The paper indicates that future requests for connectivity may not be granted on the basis of letters of award alone. CERC has suggested that a signed PPA could be made mandatory before a project receives access to the grid. 

Another proposal is to process all future connectivity through auctions. The paper describes grid access as limited and invites stakeholder responses before rules are finalised. 

Grid Expansion  

India plans to build 500 GW of non-fossil electricity capacity by 2030. Transmission growth has not matched generation targets. The country’s network spans about 495,000 circuit kilometres, and expansion has been slower than planned.  

In September, Reuters reported that grid connectivity for roughly 17 GW of delayed projects was cancelled to free space for projects already operating or nearing completion. 

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Conclusion 

If adopted, the proposals would return unused grid capacity to circulation and tie future access more closely to projects with confirmed buyers. 

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