CERC Directs Restoration Of 2300 MW Renewable Connectivity, Condones Delay Under GNA Regulations

The Central Electricity Regulatory Commission (CERC) has issued an important Order dated December 5, 2025, resolving a major dispute between two Renewable Energy Park Developers—Adani Green Energy Limited (AGEL) and Sarjan Realities Private Limited (SRPL)—and the Central Transmission Utility of India Limited (CTUIL). The matter was addressed under Petitions 768/MP/2025 and 769/MP/2025, filed by AGEL and SRPL, respectively, against CTUIL’s decision to revoke their transmission connectivity.

The issue arose after CTUIL issued a letter on September 1, 2025, revoking the connectivity granted to the developers. AGEL’s connectivity of 1,050 MW and SRPL’s connectivity of 1,250 MW were cancelled, accounting for a combined capacity of 2,300 MW. The revocation was executed under Regulation 11B(2) of the CERC (General Network Access) (Second Amendment) Regulations, 2024, commonly referred to as the GNA Regulations. CTUIL’s decision was based on the alleged failure of the petitioners to comply with Regulation 11A(2), which requires Renewable Energy developers to achieve Financial Closure at least six months before the later of the Scheduled Commercial Operation Date (SCOD) or the intended start of connectivity. Additionally, developers must submit proof of achieving Financial Closure to CTUIL within 15 days.

Both AGEL and SRPL challenged the revocation, maintaining that the action was illegal and contrary to the regulatory framework. They argued that they had achieved substantial compliance and that the alleged deficiency was limited only to a delay in submitting the Financial Closure documents. AGEL claimed to have achieved Financial Closure on June 21, 2025, before the due date of June 25, 2025, while SRPL achieved Financial Closure on June 23, 2025, before the June 26, 2025 deadline. However, both entities submitted the required documents late, which CTUIL received on August 29, 2025. This resulted in delays of 54 days for AGEL and 56 days for SRPL.

The companies also argued that CTUIL had incorrectly computed the compliance deadlines since the actual start date of their connectivity was dependent on the completion of the Common Transmission System, which was yet to be finalized. They maintained that revocation was excessively harsh, especially since the projects had already achieved full Financial Closure, securing the necessary funding from lenders.

During the hearing, CTUIL acknowledged that the Financial Closure documents submitted by both developers were found to be correct and satisfactory upon review. Nevertheless, CTUIL stated that automatic revocation was triggered due to non-compliance with the submission timeframe specified in the GNA Regulations.

After considering the submissions from all sides, CERC invoked its Power to Relax and Power to Remove Difficulty under Regulations 41 and 42 of the GNA Regulations. The Commission decided to condone the delay in submission of documents, noting that the petitioners had achieved the primary objective of securing financing for the projects. As a balancing measure, the Commission directed AGEL and SRPL to pay a compensation amount equal to 5% of the total Conn Bank Guarantees (BGs) submitted by them. This compensation must be paid within 15 days from the date of the Order.

Following the receipt of the payment, CTUIL has been instructed to restore the connectivity granted to both developers. The Commission also clarified that the decision was based on the specific circumstances of this case and should not be treated as a precedent for future matters.

The Order also disposes of all related Interlocutory Applications and reinforces the Commission’s approach of ensuring regulatory discipline without hindering renewable development progress.