The regulator has relaxed some provisions of the GNA Regulations providing developers with a 60-day window to choose one of the four options.
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In a development that can help free up to 15.7 gigawatt (GW) of stuck transmission capacity, the Central Electricity Regulatory Commission (CERC) has introduced a one-time option for renewable energy projects that await signing of power purchase agreements (PPAs), but are holding on to transmission capacity.The regulator in a suo motu order last week said that connectivity is a “scarce resource”, and the need of the hour is to utilise the stranded transmission capacity in a timely manner.The General Network Access (GNA) Regulations provide for a letter of award (LoA) issued by renewable energy implementing agency (REIA) as one of the routes to seek connectivity by a renewable energy generating station (REGS).GNA routeThe regulator opined that the GNA route was permitted considering that the LOAs issued by the REIA shall convert into PPAs and Power Sale Agreements (PSAs), thereby bringing certainty to RE generation development.However, it was learnt that for a large quantum of connectivity, granted on the basis of LoAs issued by different REIAs, PPAs have not been entered into by the REIAs with REGS due to the non-signing of the PSAs by buyers, it added.“We are of the view that REIAs instead of waiting indefinitely for signing of PSA and keep holding on to LoAs knowing fully well that such LoA is an eligible document for seeking Connectivity (a scarce resource) should have taken appropriate action to find a way forward including cancellation of LoAs, enabling generating station to whom LoA has been issued, to either exit the Connectivity or convert to Land or Land BG route,” the regulator said in its order.In fact, some of the later LoAs of REIAs or Discoms have culminated in PPAs, but such projects are unable to get any connectivity since connectivity is blocked by LoAs that did not culminate into PPA, it added.Transmission capacityOn stranded transmission capacity, the CERC pointed out that the total LoAs issued by the four REIAs from 2019 to June 2025 is 40,420 megawatt (MW), a PPA has been signed for only 2,338 MW.Using such LoAs, connectivity granted (in-principle or both in-principle and final connectivity) for which a PPA has not been signed, totals 22.054 GW. Out of this, around 6.35 GW (6,346.8 MW) connectivity involves transmission planning issues.“This implies that out of 40.4 GW LoAs, the connectivity which was obtained using such LoAs, that may get released or utilized under the instant Order, are of the order of about 15.7 GW only,” the regulator added.After consultations with stakeholders, the regulator has relaxed some provisions of the GNA Regulations providing developers with a 60-day window to choose one of the four options.The options are exit from the LoA route without surrendering connectivity; substitution of the LoA with a PPA signed under another LoA; surrendering of such connectivity with return of Conn-bank guarantees and continue to be governed in terms of the GNA Regulations.The concerned RE project will have to obtain a No Objection Certificate (NoC) from the concerned REIA to choose any of the four options.Published on July 13, 2026
