The Central Electricity Regulatory Commission (CERC) has issued a suo motu order introducing a compensation mechanism to allow eligible renewable energy developers additional time to meet key connectivity milestones under the CERC (Connectivity and General Network Access to the Inter-State Transmission System) Regulations, 2022.
The mechanism pertains to the submission of land documents, achievement of financial closure (FC), and commercial operation date (COD), subject to specified eligibility conditions and payment of milestone extension charges (MEC). As per the order, the MEC starts at Rs 1,000 per MW per day for land and FC extensions and Rs 3,000 per MW per day for COD extensions, with higher rates for longer extensions. The maximum additional time is three months for land compliance, six months for FC, and 12 months for COD. Additionally, if the milestone is not achieved within the permitted extension, connectivity may be revoked, and applicable bank guarantees may be encashed.
Furthermore, if a project achieves COD without requiring a COD extension under the procedure, 50 per cent of the MEC paid will be refunded, subject to the specified conditions. In the case of partial COD, the refund will be calculated on a pro-rata basis. CERC has also directed that the MEC proceeds be utilised to reduce monthly transmission charges in accordance with the sharing regulations.