CERC Introduces Four-Option Framework for RE Projects with Unsigned PPAs Under GNA Connectivity
The Central Electricity Regulatory Commission has introduced a one-time regulatory framework allowing renewable energy developers with connectivity granted against LoAs, but without signed Power Purchase Agreements, to retain, modify, surrender or substitute their connectivity under the GNA Regulations.
July 13, 2026. By Mrinmoy Dey
The framework applies to entities that have obtained in-principle or final connectivity under the General Network Access (GNA) Regulations based on LoAs, including projects transitioned from the earlier 2009 Connectivity Regulations. It covers LoAs issued by Renewable Energy Implementing Agencies (REIAs) – SECI, NTPC, NHPC and SJVN – between January 1, 2019 and May 31, 2025, where PPAs remain unsigned either fully or partially.
Under the order, the Central Transmission Utility of India (CTUIL) will publish the list of eligible projects after receiving details from REIAs. Eligible developers will have 60 days to choose one of four options for the treatment of their connectivity, failing which they will automatically continue under the existing GNA Regulations.
The first option allows developers to exit the LoA route without surrendering their connectivity. To avail this, developers must obtain a No Objection Certificate (NoC) from the concerned REIA confirming that the PPA has not been signed, furnish a Performance Bank Guarantee (PBG) of INR 8 lakh/MW, and commit to a revised Scheduled Commercial Operation Date (SCOD) not exceeding 24 months from CTUIL's acceptance of the application or the firm start date of connectivity, whichever is later. Existing connectivity bank guarantees will remain valid and be returned after the project achieves commercial operation in accordance with GNA Regulations.
The second option enables substitution of the original LoA with a PPA secured under another LoA. The replacement PPA may originate from another REIA, a distribution licensee or an authorised agency acting on behalf of a distribution licensee. Developers can also use PPAs executed by their parent company or subsidiaries, subject to prescribed conditions. However, the revised SCOD under this route cannot exceed 30 months from the date of conversion. The framework also lays down detailed provisions for handling partial capacity conversions, excess installed capacity and multi-location renewable energy projects.
Under the third option, developers may voluntarily surrender either full or partial connectivity. CTUIL will process such requests and return the applicable connectivity bank guarantees after settlement of transmission-related dues. Connectivity relinquished through this mechanism will subsequently be offered for reallocation to existing connectivity grantees within the same substation cluster before being put up for auction if no eligible entity accepts the offer.
The fourth option allows developers to continue under the existing provisions of the GNA Regulations without opting for any of the new mechanisms. If no option is exercised within the prescribed timeline, projects will automatically be treated under this category.
A key feature of the order is the introduction of an auction mechanism for connectivity surrendered under Option III. CTUIL will first offer the released connectivity to developers holding in-principle or final connectivity in the same cluster through the reallocation process. If the capacity remains unallocated, it will be auctioned with a base price of INR 3 lakh/MW. Successful bidders will be required to furnish a Performance Bank Guarantee of INR 30,000/MW, while proceeds from auctions and reallocations will be used to reduce monthly transmission charges payable by drawee Designated Inter-State Customers (DICs) under the Sharing Regulations.
The Commission has also incorporated several changes after considering stakeholder feedback. It increased the timeline for exercising the available options from 30 days proposed in the draft order to 60 days, extended the maximum SCOD under Option I to 24 months, reduced the Performance Bank Guarantee requirement to INR 8 lakh/MW, and clarified that developers opting for Option I would not be required to furnish an additional land bank guarantee. At the same time, CERC rejected suggestions to remove the requirement for obtaining a NoC from the concerned REIA, emphasising that the certificate remains necessary to facilitate the orderly release of connectivity linked to the original LoA.
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