INDIA Trends and Developments Contributed by: Poonam Verma Sengupta, Aditya Gupta, Sakshi Kapoor and Rajesh Jha, JSA
India’s Renewable Energy Transition: Transmission Reforms, Grid Integration and Evolving Project Risks India’s renewable energy sector is growing at a fast pace as part of energy transition. The Government has set a target of 500 GW of non-fossil fuel capacity by 2030, while the Central Electricity Authority (CEA) in its 20th Electric Power Survey Midterm Review has pro- jected that installed generation capacity could reach 1,121 GW by 2035–36. For much of the last decade, regulatory efforts were focused on renewable energy capacity addition. As this capacity continues to grow, the focus is increas- ingly shifting towards transmission planning, connec- tivity and grid integration. The success of the next phase of the energy transition will depend not only on the pace of the capacity addition, but also on the ability of the transmission system to accommodate and integrate the capacity efficiently. Renewable energy projects are often located far from centres of demand and depend on timely access to transmission infrastructure for evacuation of power. Delays in transmission infrastructure can affect pro- ject timelines, constrain power evacuation and give rise to significant commercial and regulatory risks for developers and investors. Transmission access and connectivity have therefore assumed importance in project development, financing and risk allocation. Recent developments relating to General Network Access (GNA), project implementation, grid discipline, energy storage and emerging market mechanisms reflect this changing landscape. They also illustrate the regulatory focus on efficient utilisation of trans- mission infrastructure, timely project execution and large-scale renewable energy integration. GNA and the changing approach to transmission access The Central Electricity Regulatory Commission (CERC) (Connectivity and General Network Access to the inter-State Transmission System) Regulations, 2022 (the “GNA Regulations”), mark a significant shift in the manner in which connectivity and access to the inter-state transmission system (ISTS) are planned and granted. The GNA Regulations form part of India’s
broader objective of creating a unified national trans- mission system operating on the principle of “one nation, one grid, one frequency”. Prior to the GNA Regulations, access to the ISTS was governed by the CERC (Grant of Connectivity, Long- term Access and Medium-term Open Access in inter- State Transmission and related matters) Regulations, 2009. Transmission access/connectivity to the ISTS was linked to identified beneficiaries and contracted power purchase transactions. As renewable energy capacity increased and procure- ment models evolved, this framework became less suited to the requirements of a rapidly expanding sec- tor. In some cases, renewable energy projects were being developed before long-term buyers were identi- fied. Power could also be sold through multiple routes, including power exchanges and short-term markets. In this environment, transmission planning could no longer be driven solely by identified beneficiaries. The GNA framework sought to address this challenge by delinking access to the ISTS from identified benefi- ciaries and specific power transactions. Eligible enti- ties may obtain access to the transmission system without corresponding contracted arrangements with identified buyers. This provides greater flexibility to generators. The significance of GNA extends beyond transmission access. Connectivity is no longer merely a procedural or technical requirement. It has become an important project milestone and, in many cases, a prerequisite for project development, financing and project devel- opment. A recent amendment to the GNA Regulations dated 9 September 2025 reflects a growing focus on efficient utilisation of available transmission infrastructure. A notable development is the introduction of “solar hour access” and “non-solar hour access”. Under the amended framework, existing and new solar-based Renewable Energy Generating Stations (REGSs), Renewable Hybrid Generating Stations (RHGSs) and Renewable Power Park Developers (RPPDs) are con- verted into entities with solar hour access. Such enti- ties are granted injection scheduling rights into the
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