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India allows delayed solar and wind projects to pay to keep grid access

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India allows delayed solar and wind projects to pay to keep grid access

India's Central Electricity Regulatory Commission allowed solar and wind developers that miss project deadlines to keep grid connectivity by paying a daily fee. The fee is $10.48 per megawatt per day until completion, tripling if commercial operations are delayed.

Key Facts

  • Developers who miss deadlines can retain grid access by paying $10.48 per megawatt per day until project completion.
  • The fee triples if developers delay the start of commercial operations at their installations.
  • Developers receive three months to resolve land requirements, six months to secure financing, and 12 months to commission completed projects.
  • In August 2026, New Delhi exempted wind and solar developers from transmission charges if commissioning delays stem from transmission capacity constraints.
  • The option applies only to projects whose developers signed power sale contracts of at least seven years by the end of 2026.

Grid Access Payment

India's Central Electricity Regulatory Commission said space on the grid should not remain unused because connectivity is a limited resource. Solar and wind developers that miss project deadlines can stay on the grid connection list by paying $10.48 per megawatt per day until the project is complete. The payment rises to three times that daily amount if developers delay the start of commercial operations at their installations.

Timeline and Conditions

The relief is not permanent: developers have three months to meet land requirements, six months to secure financing, and 12 months to commission completed projects. The option applies only to projects whose developers signed power sale contracts of at least seven years by the end of 2026. Earlier this month, New Delhi told wind and solar developers they would be exempt from transmission charges if commissioning delays stem from transmission capacity constraints. India began phasing out interstate transmission charges for alternative energy projects in July 2025.

Solar Capacity Targets

India has a target of 500 GW of non-hydrocarbon generation capacity by 2030. Solar power currently accounts for 29% of the country's non-hydrocarbon generation capacity. Plans were to expand solar capacity from 162 GW to more than 292 GW by 2030. That target faces pressure from legislative changes aimed at reducing dependence on imported solar components from China, because local module capacity is 200 GW but solar cell manufacturing capacity is only 27 GW.

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India allows delayed solar and wind projects to pay to keep grid access