CERC Proposes Transmission Fee Relief for Delayed Renewable Projects

The Central Electricity Regulatory Commission (CERC) has released draft regulations proposing interstate transmission charge waivers for renewable energy projects that were delayed because transmission infrastructure was not available, according to a Reuters news report.  

The proposal applies to solar, wind, and hybrid power projects that missed their commissioning deadlines due to pending transmission facilities. The draft has been issued for public consultation before the regulations are finalised. 

Transmission Delays Behind Several Projects 

Transmission infrastructure has emerged as a major hurdle for a number of renewable energy projects in recent years.  

In several cases, generation facilities were completed but could not begin supplying electricity because the required transmission lines and substations were not ready. 

The draft regulations seek to address such cases by allowing eligible projects to retain transmission charge benefits despite missing their original commissioning schedules. 

Eligibility Conditions Defined 

According to the draft, the waiver would be available only for projects that have signed power sale agreements (PSAs) for a minimum period of 7 years by 31 December 2026. 

The relief is limited to projects where commissioning delays are linked to the unavailability of transmission infrastructure. The proposal covers solar, wind, and hybrid renewable energy projects meeting these conditions. 

Battery Storage Also Covered 

CERC has also proposed extending the transmission charge waiver to battery energy storage systems developed as part of eligible renewable energy projects.  

Electricity discharged from these battery systems would receive the same transmission charge treatment as the associated renewable energy project. 

The proposal applies only to storage systems integrated with qualifying renewable energy projects. 

Change in Earlier Policy 

India had started phasing out interstate transmission charge waivers for new solar, wind and hybrid projects from July 2025.  

The draft marks a departure from that policy by providing relief in cases where delays resulted from incomplete transmission infrastructure rather than project-related issues. 

The proposed changes acknowledge that some renewable energy projects could not be commissioned despite being ready because grid connectivity was unavailable. 

Read More: Indian Startups Raise $82.2 Million Across 17 Deals This Week; Funding Falls Nearly 50%! 

Conclusion 

The proposed regulations aim to address transmission-related delays for qualifying renewable energy projects through limited charge waivers. Battery storage systems linked to eligible projects have also been included in the draft. 

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