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The change means qualifying projects can retain their connectivity allocation for a limited period instead of automatically losing access to the transmission network when land, financing or commissioning deadlines are missed.
Developers can pay for additional time
Reuters reports that the Central Electricity Regulatory Commission will charge Rs 1,000 (£7.72) per MW per day for extensions linked to land and financing milestones, and Rs 3,000 (£23.15) per MW per day for delays in reaching commercial operation.
Projects can receive up to three additional months for land requirements, six months for financial closure and up to 12 months to commission. Developers that still miss the extended deadlines can lose their connectivity rights and associated bank guarantees.
Grid capacity cannot remain reserved indefinitely
The mechanism follows a series of cases in which renewable projects had secured transmission connectivity but were not progressing quickly enough to meet the required milestones.
CERC describes interstate grid connectivity as a scarce resource. A delayed project that continues to hold capacity can prevent another project from using the same part of the transmission system.
The new approach gives projects that are still progressing a defined route to retain their connection while creating a financial cost for holding capacity beyond the original timetable.
The same constraint appears in high-power charging
The policy is aimed at renewable generation rather than EV charging, but the underlying grid issue is familiar to large charging projects: securing network capacity early has value, and unused capacity can become a constraint for other connections.
For high-power charging hubs and fleet depots, the lesson is straightforward. Grid connection milestones, project delivery and equipment procurement need to remain aligned so that network capacity is not secured long before a site is capable of using it.
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