India's energy regulator is considering auctioning grid slots if renewable projects fail.

According to a paper posted on the website, India's regulator of power is considering auctioning off transmission connectivity that was left idle due to renewable energy developers failing to sign power purchase contracts.

According to the Central Electricity Regulatory Commission, approximately 31.8 gigawatts were granted as grid access for projects based on award letters.

The connectivity is still unused, as no power purchase agreements were executed. This has blocked transmission capacity, and slowed the clean energy rollout.

State power utilities have not purchased nearly 50 GW worth of clean energy projects.

The paper stated that developers often begin work only after purchase agreements have been signed, leaving transmission networks underutilised, while other projects ready to build cannot ensure connectivity.

New proposals give developers who have delayed purchase agreements older than 12 months the option to switch to a land route, with strict deadlines.

Other proposals include performance guarantee, swapping letters of award with power purchase agreements for other projects or exit and surrender connectivity. These would then be sold to bidders who commit to fast-tracked commissioning.

The paper suggests that future applications could require power purchase agreements rather than just letters of award, or only be processed through auctions. It cites connectivity as "a scarce resource" which should go to players who are committed.

The proposals have been sent to stakeholders for their comments.

India wants to add 500 GW non-fossil power by 2030. However, delays in project implementation and transmission bottlenecks are key challenges.

Transmission network in the country, which stretches to about 495,000 circuit kilometers, is not keeping up with the increase in generation capacity.

In September, it was reported that India had denied grid access to nearly 17 GW worth of clean energy projects that were delayed in order to give priority to those that were operational or close. Reporting by Sethuraman N; Editing and proofreading by Shreya Biwas

(source: Reuters)