Govt Plans Relief Package to Revive 45 GW Stranded RE Projects

The government is considering a major one-time relief package to revive nearly 45 GW of stranded renewable energy projects that are awaiting power purchase agreements (PPAs).

The proposed package, prepared by the Ministry of New and Renewable Energy (MNRE) includes interstate transmission charge waivers, battery energy storage support, deemed tariff approvals and flexible connectivity norms to accelerate stalled clean energy capacity.

A key proposal offers a 100 percent waiver of Interstate Transmission System (ISTS) charges for projects whose PPAs or PSAs are signed within three months of the package notification. Another option under review combines standard regulatory ISTS waivers with an additional 25 percent concession.

The package also proposes deemed Renewable Purchase Obligation (RPO) and Renewable Consumption Obligation (RCO) compliance for discoms from the date of PPA signing, alongside deemed tariff adoption within 45 days if state electricity regulators fail to act.

To address grid balancing concerns, standalone solar projects may be allowed to integrate two-hour Battery Energy Storage Systems (BESS) under Section 62 tariffs without altering project configuration or tariff structures.

On the supply side, developers with stranded Letters of Award (LoAs) would be given three options: cancellation of LoAs without surrendering connectivity, milestone extensions with graded charges, or penalty-free surrender of connectivity with cancellation of LoAs.

The proposed measures are aimed at reviving delayed renewable projects amid India’s rapid clean energy expansion, with non-fossil fuel capacity now reaching nearly 288 GW and solar capacity touching around 155 GW.