India's renewable energy sector could receive a significant policy boost as the Central Electricity Regulatory Commission (CERC) has proposed restoring interstate transmission system (ISTS) charge waivers for renewable energy projects delayed due to inadequate transmission infrastructure.

The draft regulations are designed to support solar, wind, and hybrid power projects that were unable to meet their commissioning deadlines because transmission lines were not available. If implemented, the proposal will reduce financial burdens on developers while helping accelerate India's clean energy transition.

Relief for Renewable Energy Projects Delayed by Grid Infrastructure

Under the proposed regulations, projects will remain eligible for ISTS transmission charge waivers if delays are caused by the non-availability of transmission infrastructure rather than project-related issues.

The relief will apply to renewable energy projects that:

• Have secured Power Sale Agreements (PSAs) with a minimum tenure of seven years.
• Finalized these agreements on or before 31 December 2026.
• Experienced commissioning delays due to unavailable interstate transmission infrastructure.

The proposal represents a major policy shift after India began phasing out ISTS transmission charge waivers for new solar, wind, and hybrid projects from July 2025.

Battery Energy Storage Systems Also Included

Recognizing the growing importance of energy storage in renewable integration, CERC has also proposed extending transmission charge waivers to Battery Energy Storage Systems (BESS) that are developed alongside renewable energy projects.

Electricity supplied from these storage systems would receive the same transmission charge benefits as the associated renewable generation project. This move is expected to improve project economics and encourage greater investment in grid-scale battery storage.

CERC Releases Grid Connectivity Reserved by Stalled Projects

In a separate initiative, CERC recently issued a suo motu order introducing a one-time mechanism to release interstate transmission connectivity reserved by renewable projects that failed to secure Power Purchase Agreements (PPAs).

The decision could make approximately 15.7 GW of interstate transmission connectivity available for new developers.

The order applies to projects that obtained connectivity under the General Network Access (GNA) Regulations using Letters of Award (LoAs) issued by Renewable Energy Implementing Agencies (REIAs), including:

• SECI
• NHPC
• NTPC
• SJVN

The GNA framework enables developers to obtain transmission connectivity before signing PPAs, accelerating project development timelines. However, projects that failed to convert their LoAs into long-term PPAs ended up blocking valuable transmission capacity. The new mechanism aims to improve grid utilization and accelerate renewable deployment.

Renewable Energy Curtailment Continues to Rise

While renewable capacity continues to expand rapidly, transmission infrastructure has struggled to keep pace.

According to recent industry analysis, renewable energy curtailment reached significant levels during Q1 FY27, highlighting the urgent need for stronger grid infrastructure.

Key observations include:

• Solar generation curtailed: 185.5 GW
• Wind generation curtailed: 50 GW
• Emergency TRAS solar curtailment: 421.7 GW
• Emergency TRAS wind curtailment: 67.4 GW

Gujarat recorded the highest renewable energy curtailment, particularly around the Khavda and Bhuj pooling stations, where grid congestion has become increasingly common.

These curtailments indicate that renewable generation capacity is growing faster than the supporting transmission network.

Transmission Delays Becoming the Biggest Bottleneck

Industry experts increasingly identify transmission infrastructure as one of the biggest challenges to India's renewable energy ambitions.

Major issues include:

• Delays in land acquisition
• Right-of-Way (RoW) challenges
• Regulatory approvals
• Slow commissioning of transmission corridors
• Limited grid evacuation capacity

As of May 2026, nearly one-third of recently commissioned renewable projects relied on Temporary General Network Access (T-GNA), with solar-hour curtailment reaching 50–60% in several locations.

Massive Grid Expansion Planned

India is preparing for one of its largest-ever transmission infrastructure expansion programs.

According to industry estimates:

• Around 107 GW of renewable projects with connectivity approvals are expected to be integrated into the interstate transmission system between FY2027 and FY2031.
• Power transmission investments are expected to reach ₹5–6 trillion between FY2027 and FY2032.
• The country aims to integrate over 900 GW of non-fossil fuel generation capacity by 2035–36.
• Solar and wind together are expected to contribute approximately 548 GW of this capacity.

To achieve these goals, India will need to add approximately:

• 20,000 circuit kilometres of transmission lines every year.
• 120 GVA of substation capacity annually.

These investments are essential for enabling large-scale renewable energy integration while maintaining grid reliability and minimizing power curtailment.

Why CERC's Proposal Matters

Restoring ISTS transmission charge waivers could significantly improve project viability for renewable developers affected by transmission delays beyond their control.

The proposal offers multiple benefits:

• Reduces financial risk for delayed renewable projects.
• Encourages investment in solar, wind, hybrid, and battery storage projects.
• Improves utilization of existing transmission connectivity.
• Supports faster renewable energy deployment.
• Strengthens India's progress toward long-term clean energy and net-zero objectives.

As renewable energy installations continue to grow, synchronized investments in transmission infrastructure, battery storage, and regulatory reforms will be critical for ensuring that clean electricity reaches consumers efficiently.

CERC's proposed restoration of interstate transmission charge waivers marks an important policy correction that acknowledges the challenges posed by transmission infrastructure delays. Combined with measures to free unused grid connectivity and encourage battery energy storage integration, the proposal could help unlock stalled renewable projects and improve investor confidence.

However, achieving India's ambitious renewable energy targets will require sustained investment in transmission networks, faster project execution, and improved grid planning. As the country moves toward a cleaner energy future, strengthening transmission infrastructure will be just as important as adding new renewable generation capacity.

About Shirdi Sai Electricals Limited

Shirdi Sai Electricals Limited (SSEL) was founded in the year 1994 at Kadapa in Andhra Pradesh. It was established by Mr N Visweswara Reddy, who currently serves as Chairman and Managing Director (CMD) for the organisation. The organisation was initially served as transformer repair unit, but it has metamorphosed into one of the largest transformer manufacturing companies in India over three decades.

SSEL has grown into reliable energy solutions provide in India and across the world over the last three decades. It currently operates 5 manufacturing facilities with different product portfolio. It manufactures Power and Distribution Transformers. SSEL products are exported to over 40 countries across the world. It has state-of-the-art manufacturing facilities located at Kadapa in Andhra Pradesh, Naini in Uttar Pradesh and Kancheepuram in Tamilnadu.