India’s electricity market regulator, the Central Electricity Regulatory Commission (CERC), has proposed restoring interstate transmission charge waivers for renewable energy projects delayed by a lack of transmission infrastructure.
The draft regulations would apply to solar, wind and hybrid projects that missed commissioning deadlines due to unavailable transmission lines. The relief would be available to projects that had secured power sale agreements of at least seven years by 31 December 2026.
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CERC also proposed extending the waiver to battery energy storage systems (BESS) built as part of renewable energy projects, with electricity supplied from storage receiving the same transmission charge benefits as the associated renewable project.
The proposal marked a policy reversal after India began phasing out interstate transmission charge waivers for new solar, wind and hybrid projects from July 2025.
Last month, CERC issued a suo motu order creating a one-time mechanism to release interstate transmission connectivity reserved by renewable projects that received Letters of Award (LoAs) but failed to secure power purchase agreements (PPAs).
The move could free up to 15.7GW of grid connectivity for other developers, according to the regulator.
The order covered projects that obtained connectivity under the General Network Access (GNA) Regulations using LoAs issued by Renewable Energy Implementing Agencies (REIAs), including SECI, NHPC, NTPC and SJVN.
The GNA framework allowed developers to secure transmission connectivity before signing PPAs, based on the expectation that LoAs would later convert into PPAs and power sale agreements.
India renewable curtailment rises as grid delays persist — report
In other news, India’s renewable energy curtailment reached significant levels in Q1 FY27, with 235.5GW of clean energy generation directly curtailed, according to analysis from Norway-based think tank Centre for Research on Energy and Clean Air (CREA).
Solar accounted for 185.5GW of direct curtailment, while wind accounted for 50GW, as transmission infrastructure failed to keep pace with renewable deployment.
Emergency curtailment through the Tertiary Reserve Ancillary Service (TRAS) mechanism was higher, with 421.7GW of solar and 67.4GW of wind generation curtailed.
Gujarat recorded the highest curtailment levels, with 122GW of solar and 39GW of wind generation curtailed during the quarter. The state also recorded the highest TRAS-down events, a mechanism managed by Grid-India that helps balance India’s power grid by reducing or increasing generation to maintain system security and grid stability, particularly at the Khavda and Bhuj pooling stations.
In January 2026, Ember reported that India curtailed 2.3TWh of solar generation was curtailed between May and December 2025 through emergency TRAS, with nearly 0.9TWh occurring in October alone.
Transmission delays have become a growing constraint for India’s renewable expansion. The Institute for Energy Economics and Financial Analysis (IEEFA) said grid investment and battery storage deployment were becoming increasingly critical alongside new renewable capacity additions.
According to Indian credit rating agency ICRA, transmission projects continued to face execution risks linked to land acquisition, right-of-way issues and regulatory approvals. Around 33% of recently commissioned renewable capacity was being evacuated through Temporary General Network Access (T-GNA) routes as of May 2026, with curtailment during solar hours reaching 50-60%.
Around 107GW of renewable projects with connectivity approvals are expected to be integrated into the interstate transmission system between FY2027 and FY2031.
Recently, ICRA reported that India’s power transmission sector was set for a multi-year investment cycle, with capital expenditure expected to reach INR5 trillion (US$52 billion) to INR6 trillion (US$62 billion) between FY2027 and FY2032, according to Indian credit rating agency ICRA.
The investment was expected to support grid expansion, including new evacuation infrastructure and transmission corridors, to integrate more than 900GW of non-fossil fuel capacity by 2035-36. Solar and wind were expected to account for around 548GW of the planned capacity.
ICRA estimated the sector would need to add around 20,000 circuit kilometres of transmission lines and 120GVA of substation capacity annually to meet targets outlined in the government’s National Electricity Plan-II.
