(MENAFN- KNN India) New Delhi, Nov 18 (KNN) Inox Green Energy Services has lost grid access for its 300 MW wind project in Gujarat after failing to meet commissioning deadlines, according to an order issued by the Central Electricity Regulatory Commission (CERC).

The regulator upheld the decision of the Central Transmission Utility of India Ltd (CTUIL), in an order dated Monday, to revoke the project's connectivity at the Bhuj-II pooling station, citing the company's inability to achieve financial closure or demonstrate substantive progress despite multiple extensions

CTUIL revoked the connectivity on March 10 and encashed bank guarantees worth Rs 3.5 crore, according to Reuters.

The CERC noted that Inox Green had been“holding onto the connectivity for the last six years, which is a scarce resource,” highlighting ongoing pressure on India's transmission network.

The case reflects wider challenges facing renewable energy developers, including difficulties in land acquisition and delays in expanding transmission capacity.

Reuters reported in September that India has cancelled grid access for nearly 17 GW of delayed clean energy projects to prioritise connections for those closer to completion, as the country seeks to double its non-fossil fuel power capacity to 500 GW.

Inox Green argued that its delays were the result of land allocation issues, transmission preparedness and disruptions caused by the COVID-19 pandemic.

The company requested that its grid connectivity be retained. However, the CERC rejected the plea, stating that the developer had“taken undue advantage of the delay in revocation” and directed it to reapply if it intends to pursue the project.

The Solar Energy Corporation of India, which awarded the original tender, has already encashed the project's performance guarantees, and a government dispute resolution panel had earlier refused to grant further extensions to the company.

(KNN Bureau)

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