The Central Electricity Regulatory Commission (CERC) has approved a one-time General Network Access (GNA) relaxation for renewable energy projects with letters of award (LoAs) issued between January 2019 and May 2025. The measure is aimed at enabling the utilisation of nearly 22 GW of blocked interstate transmission system (ISTS) renewable capacity for which power purchase agreements (PPAs) have not been signed, of which around 6.35 GW is affected by transmission planning issues. Additionally, renewable energy implementing agencies (REIAs) have informed that PPAs for 2,490 MW may be signed, with discussions currently underway.
Furthermore, the relaxation provides eligible developers with four one-time options: exit state-backed LoA with loosing grid connectivity and move forward as merchant or independently contracted projects, replace the stalled LoA with an active PPA linked to another project LoA, surrender the GNA if the project is no longer being pursued, or continue under the existing GNA regulations, subject to applicable regulatory requirements, including penalties and cancellation if project deadlines are not met.
The first option allows developers to exit the LoA route without surrendering connectivity, subject to obtaining a no objection certificate (NOC) from the concerned REIA, furnishing a performance bank guarantee of Rs 0.8 million per MW, and committing to a revised scheduled commercial operation date (SCOD) within 24 months. The second option permits developers to substitute the original LoA with a PPA secured under another LoA, with the revised SCOD capped at 30 months from the date of conversion, while also allowing partial capacity conversions and multi-location renewable energy projects.
The third option enables developers to voluntarily surrender full or partial connectivity, with an NOC from the concerted REIA that had issued the LoA certifying the non-signing of the PPA, following which the Central Transmission Utility of India Limited will reallocate the released transmission capacity within the same substation cluster before auctioning any remaining capacity. Under the fourth option, developers may continue under the existing GNA Regulations, with projects automatically remaining under the existing framework if no option is exercised within the prescribed timeline.
