The Central Electricity Regulatory Commission (CERC) has approved a new framework allowing renewable energy developers additional time to meet key milestones under the General Network Access (GNA) Regulations, while introducing charges for such extensions. The decision was issued on August 14, 2026, through Petition No. 5/SM/2026.
The framework is aimed at renewable energy projects that have made demonstrable progress but are unable to meet prescribed deadlines related to land documentation, financial closure or commercial operation. Under the existing GNA rules, failure to meet these milestones can result in the revocation of connectivity granted to projects.
Key points of CERC’s new framework:
- Additional time is available for land, financial closure and COD milestones.
- Extensions will be subject to Milestone Extension Charges (MEC).
- Developers must meet minimum progress and documentation requirements.
- Part of the charges collected will be used to reduce transmission costs.
CERC has established the mechanism for projects that can demonstrate genuine progress but require additional time to achieve their prescribed milestones. The Commission exercised its Power to Relax under Regulation 41 and its authority to issue suo motu directions under Regulation 44.
The framework was finalized after the Commission considered written submissions from 42 stakeholders, including renewable energy developers, distribution companies and the Central Transmission Utility of India Limited (CTUIL). A public hearing was also held on May 19, 2026.
Developers seeking extensions will have to satisfy specific eligibility conditions. For land-related and financial closure milestones, at least 20% of the required land must be supported by verified documentation submitted at least 15 working days before the applicable deadline.
Eligibility requirements for land and financial closure:
- At least 20% of the required land must have verified documentation.
- Documents must be submitted at least 15 working days before the deadline.
- Developers must demonstrate measurable progress on the project.
Different requirements apply to projects seeking extensions for achieving commercial operation. Projects following the Land or Land-BG route must demonstrate compliance covering at least 75% of the required land area. Projects using the LOA/PPA route must demonstrate at least 50% compliance.
Developers applying for COD extensions must also provide executed contracts for major equipment supplies or EPC civil and electrical works.
COD extension requirements include:
- 75% land compliance for projects using the Land or Land-BG route.
- 50% compliance for projects following the LOA/PPA route.
- Executed contracts for major equipment or EPC works.
The additional time will come with Milestone Extension Charges, with the amount depending on the milestone and duration of the extension.
For land-related milestones, extensions can be granted for up to three months. Charges begin at ₹1,000 per MW per day during the first month and increase to ₹1,200 per MW per day during the third month.
Financial closure extensions can be provided for up to six months. Charges start at ₹1,000 per MW per day for the first three months and rise progressively to ₹1,300 per MW per day in the sixth month.
Milestone Extension Charges:
- Land: Up to 3 months; ₹1,000-₹1,200/MW/day.
- Financial closure: Up to 6 months; ₹1,000-₹1,300/MW/day.
- COD: Up to 12 months; charges can rise to ₹6,000/MW/day.
COD extensions can be granted for up to 12 months, subject to the prescribed conditions. Charges are set at ₹3,000 per MW per day for the first six months, increasing to ₹3,900 per MW per day thereafter and reaching ₹6,000 per MW per day during months ten to twelve.
Developers will have to deposit the applicable MEC 15 days in advance, with payments calculated on a daily pro-rata basis.
The order also provides a refund mechanism for developers that successfully advance their projects during the extension period. Projects achieving full or partial COD within the permitted period may qualify for a 50% refund, without interest, of MEC paid for earlier land and financial closure extensions, subject to CERC’s conditions.
Refund provision:
- Eligible developers can receive a 50% refund of certain MEC payments.
- The refund applies to earlier land and financial closure extension charges.
- No interest will be paid on the refunded amount.
- Developers must meet the conditions specified by CERC.
CERC has also directed that the charges collected under the new mechanism should provide benefits to the wider power system. The Commission has ordered that 100% of MEC collected for COD extensions and at least 50% of land and financial closure charges be used to reduce monthly inter-State transmission system charges.
The new framework gives renewable energy developers greater flexibility to address project delays while maintaining financial discipline through extension charges. It also seeks to ensure that delays do not place the entire cost burden on consumers and distribution companies.
For India’s growing renewable energy pipeline, the mechanism could provide developers with additional time to complete projects while encouraging timely progress on land acquisition, financing, equipment procurement and construction.
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