Mumbai, Aug. 7 -- The Central Electricity Regulatory Commission (CERC) has proposed transmission charge relief for renewable energy projects that have been delayed on account of transmission constraints. The proposal aims to ease the financial burden on developers by adjusting the levy applied for use of the grid where project commissioning has been deferred. The regulator has framed the measure as part of broader efforts to support timely integration of renewable capacity.
The relief would apply to projects facing delays that are attributable to network availability rather than developer inaction. It outlines criteria for eligibility and a framework for calculation of adjusted transmission charges. Developers and distribution companies are required to submit relevant data to the grid operator for assessment under the proposed mechanism.
The proposal also addresses how cost causation will be determined and seeks to balance consumer interest with investor protection. By limiting carrying costs in certain instances the regulator intends to prevent escalation of levies that would otherwise fall on end users. The approach preserves the principle that network costs are borne by those who benefit from grid assets.
A public consultation period is proposed so affected parties can provide comments and data supporting their claims. The regulator will review submissions and issue a final order after examining technical feasibility and legal considerations. Interested stakeholders will be expected to follow the timetable set out in the consultation paper.
Industry participants welcomed clarity on the treatment of stranded or stalled projects and noted that streamlined remedies reduce carrying costs and improve project bankability. The regulator described the change as aligning with policy objectives to accelerate the energy transition while maintaining tariff stability. Market participants will review the final order once it is issued and adjust procurement and commissioning schedules accordingly.
Published by HT Digital Content Services with permission from Construction World.