Power regulator
India’s power regulator has issued a Staff Paper that directly challenges the long-standing LoA-based connectivity model, identifying 31.8 GW of granted capacity with no PPA movement and 45.34 GW when pending applications are added. The proposal marks a structural response to speculative holding, stalled PPAs and under-utilised transmission assets—an issue increasingly defining India’s power regulator debates on renewable evacuation.
CERC introduces a decisive 12-month threshold where developers must sign PPAs or shift into one of three pathways: retain connectivity with steep milestones, substitute LoAs with new PPAs, or surrender capacity entirely. The milestone-linked pathway demands new PBGs, land proof within 12 months, financial closure within 15 months and COD within 18 months, alongside daily extension charges. These reflect the power regulator tightening accountability across ISTS connectivity.
A second reform creates an auction-led reallocation system, with base prices set at Rs 3 lakh/MW and reinforced through earnest money deposits and 10% PBGs. Commissioning deadlines are 12 months for ready substations and 24 months for future ones, aligning grid access with ISTS connectivity reforms and real execution readiness.
Finally, the Staff Paper hints at a complete departure from LoA routes, with future connectivity possibly restricted purely to PPAs or auction-based allocation—an ambitious step by the power regulator to synchronise renewable build-out with firm commitments, Power Regulator, ISTS Reforms, Renewable Policy, Energyline India.
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