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Source: India revokes grid acces for 17 GW clean energy projects

According to an official document and a source with knowledge of the issue, India has canceled grid access to nearly 17 gigawatts (17 GW) of clean energy projects that have been delayed. This is to give priority to those projects which are already operational or close to completion.

Documents show that the state-run Central Transmission Utility of India Ltd. (CTUIL), informed companies such as Adani Green Energy, ReNew Power NTPC Avaada Group JSW Energy, ACME Solar, and ReNew Power about the cancellations.

According to a federal agency that oversees interstate transmission access, the affected projects are located within renewable-rich Indian states like Rajasthan, western Gujarat and Madhya Pradesh.

Source who requested anonymity said that the grid access terminations took place in the quarter of June after notices had been sent to the companies. The firms are seeking help from the federal regulator for power, the Central Electricity Regulatory Commission.

New Delhi has been prompted by India's rising power demand, driven by mechanised agriculture, industrialisation and urbanisation, to streamline grid regulations to better integrate clean-energy projects and ensure uninterrupted supply of electricity for its 1.4billion people.

By 2030, the country wants to reach 500 GW in non-fossil energy capacity. The country's transmission network, which stretches over 495,000 circuit kilometers, is behind the growth of its generation capacity.

Officials said that the Central Transmission Utility performed manual inspections prior to revoking access, and will continue its efforts to release transmission lines for projects on track to completion.

JSW Energy appealed against the revocation. However, the regulator refused to grant interim relief in an order dated 24 June, and asked CTUIL on 10 July to share its response. According to orders on the CERC's website, the petition has been scheduled for October 7.

A spokesperson for Adani stated that there was no cancellation of connectivity due to delays in project commissioning dates. He did not provide any further details.

Emails seeking comments from the CTUIL and other companies were not answered.

India tightened its rules last week to limit the trading of grid access. Developers are no longer allowed to change their source of generation once they have secured connectivity.

CERC mandated also that the project promoters retain control of their projects until commissioning. Violations can lead to the forfeiture of bank guarantee and the revocation or connectivity. (Reporting and editing by Nidhi verma, Sonali Paul, and Sethuraman N.R.)

(source: Reuters)