Inox Green, India loses grid access to 300 MW of wind power project after regulators back revocation

Inox Green Energy Services, an Indian developer of clean energy, has lost grid connectivity after it failed to complete its 300 megawatts (MW) Gujarat wind project on time.

In an order dated on Monday, the Central Electricity Regulatory Commission, (CERC), upheld the disconnection of the country's Grid Connectivity Authority, saying that the firm failed to achieve financial close or make significant advances despite multiple extensions.

Central Transmission Utility of India Ltd. (CTUIL), a state-run company, revoked connectivity at Bhuj-II Pooling Station on 10 March after Inox Green failed to meet commissioning deadlines. CTUIL repaid bank guarantees totaling 35 million rupees (394,788.79 dollars) as well.

Disconnection highlights the challenges Indian clean energy developers face, particularly in acquiring the land needed for projects. The country's transmission network is also behind project additions.

In September, it was reported that India had cancelled grid access to nearly 17 gigawatts of clean energy projects that were delayed. This is in order to give priority to those projects that are already operational or close.

Developers are ramping-up clean energy projects as South Asia looks to double the nation's non-fossil based power to 500 gigawatts.

In its order, the power regulator stated that Inox Green "has been holding onto connectivity for the past six years which is a limited resource", citing the tightness of the transmission network in the country.

Inox Green claimed that delays were due to land allocation issues, transmission readiness, and pandemic disruptions. They also sought to maintain connectivity.

The CERC, however, rejected this argument, stating that the developer "took unfair advantage of the delay" in the revocation and instructed it to reapply if it wanted to continue the project.

Inox Green was denied more time by a dispute resolution panel of the government. The Solar Energy Corporation of India (SEC), which awarded the tender, had already paid out performance guarantees. $1 = 88.6550 Indian Rupees (Reporting and editing by Sethuraman N.R.

(source: Reuters)