Adani Green, JSW, NTPC Among Firms Hit As India Scraps Grid Access For Stalled Clean Energy Projects

India has reportedly cancelled grid access for nearly 17 gigawatts (GW) of delayed clean energy projects to prioritize connections for operational and near-completion projects.

The cancellations, carried out in the June quarter after prior notices, affect projects located in renewable-rich states such as Rajasthan, Gujarat, and Madhya Pradesh, according to a Reuters report.

The move affects several companies, including Adani Green Energy, NTPC, JSW Energy, Avaada Group, ReNew Power, and ACME Solar.

While shares of Adani Green Energy (+0.9%) and JSW Energy (+1.2%) closed in the green on Monday, NTPC shares ended trade 0.65% lower.

Developers have reportedly approached the Central Electricity Regulatory Commission (CERC) seeking relief; however, interim relief has not been granted so far. JSW Energy's appeal was declined, with the next hearing scheduled for October 7.

Regulatory Tightrope

Officials said India's surging power demand, driven by rising incomes, industrialization, mechanized farming, and urbanization, has prompted the government to tighten grid rules to ensure a reliable supply while supporting the growth of clean energy. Although India aims to achieve 500 GW of non-fossil fuel power capacity by 2030, its transmission network of 495,000 circuit kilometers remains under strain.

The Central Transmission Utility of India (CTUIL) manually inspected the projects before revoking access and will continue efforts to free up transmission lines for viable projects. Developers, however, argue that delays alone should not be used as justification for cancellation.

Adani Green Energy said there was“no connectivity revocation on account of delay in project commissioning dates.”

In a bid to tighten regulations, authorities have prohibited developers from altering the source of generation after securing grid connectivity. Authorities have also requested that promoters retain control until the project is commissioned. Any breach of these rules could result in the forfeiture of bank guarantees and the cancellation of connectivity rights, the report added.

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