CERC Restores 400 MW Renewable Energy Project Connectivity In Madhya Pradesh

The Central Electricity Regulatory Commission (CERC) has issued a significant ruling in favor of ACME Cleantech Solutions Private Limited in a dispute with Central Transmission Utility of India Limited (CTUIL) over a 400 MW renewable energy project planned in Madhya Pradesh. The case involved the developer’s request to change its project source from solar to wind and modify part of its connectivity arrangement after amendments were introduced to the General Network Access (GNA) Regulations.

The dispute started after ACME received an in-principle connectivity grant for a solar power project connected to the Pachora Pooling Station. Later, after the Third Amendment to the GNA Regulations came into effect in September 2025, developers were allowed to change their energy source even before obtaining the final connectivity grant. Based on this provision, ACME applied to convert its planned solar project into a wind project to match the requirements of a hybrid renewable energy contract secured through NTPC Limited.

However, CTUIL did not immediately process the request. The transmission utility argued that it was still working on calculating the available non-solar access capacity during the transition phase under the amended regulations. At the same time, CTUIL directed ACME to submit land documents related to the original solar project before the October 2025 deadline.

Instead of solar project documents, ACME submitted land-related papers for the proposed wind project. CTUIL rejected the submission and issued a letter on December 4, 2025, revoking the company’s connectivity approval. The utility also warned that ACME’s bank guarantee of ₹40 crore could be encashed.

Following this action, ACME approached the Delhi High Court seeking urgent relief. The court ordered maintenance of the status quo, after which the matter was taken up by the CERC for detailed consideration.

During the proceedings, ACME informed the Commission that it had already made substantial progress on the wind project. The company stated that it had invested in wind turbines, secured lease deeds for 44 project locations, and completed foundation work at 31 sites. ACME further argued that delays by CTUIL in issuing the final connectivity grant, which was reportedly delayed by more than a year, had prevented the company from implementing the required changes earlier.

After reviewing the matter, the CERC observed that the Third Amendment to the GNA Regulations was introduced to provide flexibility to renewable energy developers. The Commission noted that developers should not face penalties because of administrative delays during the transition to the new regulatory framework.

In its final order, the Commission set aside CTUIL’s revocation letter and restored ACME’s project connectivity status. The CERC also directed CTUIL to process ACME’s application for changing the power source, issue the final connectivity grant, and evaluate the land documents submitted for the wind project. The ruling highlights the need to balance regulatory compliance with practical implementation challenges faced by renewable energy developers during policy transitions.