The Central Electricity Regulatory Commission has introduced a one-time framework allowing renewable energy developers to surrender, transfer or retain unused interstate transmission system connectivity.

The initiative is expected to release approximately 15.7 GW of transmission capacity currently blocked by renewable energy projects that have not secured power purchase agreements or achieved financial closure.

Under the framework, developers can surrender unused connectivity so that it can be reallocated to other eligible projects. They may also transfer the connectivity to another renewable energy project within the same corporate group.

Developers choosing to retain their connectivity must provide a performance bank guarantee of ₹8 lakh per MW. They will also be required to commission the associated project within 24 months.

CERC noted that several renewable energy projects awarded between 2019 and 2025 have remained without confirmed power offtake arrangements. As a result, valuable transmission infrastructure has remained reserved but underutilised.

Industry experts believe the measure will improve grid access for projects that are ready for commissioning, reduce transmission bottlenecks and support faster renewable energy deployment.

The framework is also expected to provide developers with greater operational flexibility while improving the efficient utilisation of India’s interstate transmission network.