CERC Issues Draft Fourth Amendment 2025 To Streamline Renewable Energy Connectivity And Grid Network Access Regulations

Posted On - 13 May, 2025 • By - King Stubb & Kasiva

Introduction

Draft Fourth Amendment (2025) to the Connectivity and General Network Access (GNA) to the Inter-State Transmission System Regulations has been published by the Central Electricity Regulatory Commission (CERC).[1] Designed to simplify grid access and renewable energy (RE) integration, the amendment aims to solve operational difficulties experienced by developers so guaranteeing effective transmission planning. Leading renewable energy producer ReNew Private Limited, India, has sent thorough comments on the draft supporting alignment with current rules, long timescale, and flexibility for hybrid projects. The main points of the draft amendment’s provisions as well as ReNew’s suggestions to improve its potency are investigated in this paper.

Explanation (Key Points)

  1. Alignment with Competitive Bidding Guidelines
    • Draft Provision: Regulation 5.2a(c) mandates an 18-month deadline for commercial operation of additional RE capacity (e.g., solar/wind with energy storage systems).
    • ReNew’s Proposal: Replace the 18-month cap with timelines specified in Ministry of Power (MoP) guidelines—24 months for projects ≤1,000 MW and 30 months for >1,000 MW.
    • Rationale: MoP’s competitive bidding guidelines already account for larger project complexities. Harmonizing CERC’s regulations with these timelines would prevent conflicts and ensure developers meet realistic deadlines.
  2. Flexibility for Hybrid Projects
    • Draft Provision: Regulation 5.11(b) classifies hybrid projects (e.g., solar + storage) as “restricted access” entities based on initial capacity configurations.
    • ReNew’s Proposal: Allow capacity reconfiguration until financial closure, as permitted in tenders by agencies like SECI and NTPC.
    • Rationale: Hybrid projects require flexibility to optimize technology mixes. Premature restrictions could hinder innovation and compliance with Power Purchase Agreements (PPAs).
  3. Timeline Extensions and Revocation Safeguards
    • Draft Provision: Regulation 5.2a(e) requires existing projects to submit revised commercial operation dates within two weeks of the amendment’s enactment, risking revocation for delays.
    • ReNew’s Proposal: Extend the submission window to three months and mandate CTU (Central Transmission Utility) to assess delays objectively before revocation.
    • Rationale: Delays often stem from external factors (e.g., land acquisition, right-of-way issues). A fair assessment process would protect serious developers from punitive measures.
  4. Shareholding Relaxations for Listed Entities
    • Draft Provision: Regulation 11A(6) restricts shareholding changes until project commissioning, barring promoter control dilution.
    • ReNew’s Proposal: Exempt listed entities from these restrictions, aligning with RfS (Request for Selection) norms.
    • Rationale: Listed companies require dynamic shareholding for fundraising. Rigid rules could deter investment and disrupt capital flow.

Conclusion

Though its success depends on striking a balance between regulatory control and pragmatic reality, the Fourth Amendment of the CERC has great potential to modernize India’s grid access structure. ReNew’s suggestions—such as implementing MoP schedules, allowing hybrid project flexibility, and protecting developers from sudden fines—address key draft pain areas. These changes will help CERC create a stable environment for the expansion of renewable energy, draw in international investors, and hasten India’s change toward a sustainable energy future. A strong and flexible grid ecosystem will be shaped much in part by the Commission’s responsiveness to industry comments as stakeholders wait for the final rules.

[1] https://cercind.gov.in/2025/draft_reg/GNA-4EMA/Comments/ReNew%20Private%20Limited.pdf