India’s Central Transmission Utility (CTUIL) has revoked grid access for 6.3 GW of renewable projects since 2022, affecting twenty-four projects now under litigation before the Central Electricity Regulatory Commission (CERC). The move marks stricter enforcement under the Connectivity and General Network Access (GNA) regime, which sets out clear milestones and allows connectivity withdrawal in cases of non-compliance.
Stronger regulatory oversight
Under the rules implemented by CTUIL and regulated by CERC, developers must meet strict deadlines for financial closure and project commissioning. CERC recently upheld automatic revocation for documentation failures, while granting exceptions in specific cases, such as Adani Green Energy Limited and Sarjan Realities Private Limited, which recovered 2.3 GW against a 5% penalty on their bank guarantees.
The federal Power Ministry stated that these cancellations were due to project delays, not infrastructure shortages. The political objective is to transfer planning risk to private actors while maintaining that evacuation capacity is on track. Currently, 259 GW of non-fossil capacity is operational, with transmission infrastructure under construction for an additional 172 GW.
Sector impact and companies affected
Most impacted projects are located in high-resource but low-demand states such as Rajasthan and Gujarat, where land acquisition and permits often delay execution. Large-scale hybrid projects and solar parks are particularly vulnerable to connectivity reassessments.
Major players like POWERGRID, responsible for building inter-state transmission lines, are monitoring these revocations closely, as utilisation and tariff recovery of commissioned lines could be affected. CERC now serves as an arbitrator between CTUIL’s strict interpretation of the GNA and developers’ claims of force majeure.
Implications for investors and financing
Institutional investors, including infrastructure funds and lenders, are reassessing risks associated with regulatory timelines. Bank guarantees, once seen as formalities, now carry partial forfeiture risks, prompting financiers to tighten lending terms.
Upcoming auctions by the Solar Energy Corporation of India (SECI) and state utilities could see a marginal increase in tariffs as developers account for revocation risks. Offtakers, including industrial buyers, are expected to favour financially robust firms with proven regulatory compliance.
Effects on national energy scheduling
Over the medium term, these measures aim to ensure that newly built infrastructure is not left idle due to delays. CTUIL can reallocate capacity to more advanced projects, improving public investment efficiency. The central government seeks to reinforce its 500 GW non-fossil target’s credibility through this approach.
Smaller or newer developers face heightened pressure, as minor delays in documentation or permitting could jeopardise project viability. Within this context, GNA compliance is becoming an increasingly critical governance marker for investors.
