Transmission Hurdles Pushing Green Energy Projects Into Distress, Pg15

Key Highlights:

• Approximately 21 gigawatts (GW), or 9% of India's installed renewable energy capacity, relies on temporary grid connections due to delays in dedicated transmission infrastructure.
• Around 12 GW of this capacity faces restrictions on power evacuation during peak solar generation, leading to revenue losses for developers.
• In FY26, about 6,900 gigawatt-hours (GWh) of clean electricity generation was restricted due to the mismatch between renewable energy deployment and transmission infrastructure commissioning.
• Grid operators curtailed 8,153 GWh of solar power during April-June due to transmission bottlenecks and grid security concerns.
• The Sustainable Project Developers Association (SPDA) has urged the Ministry of New and Renewable Energy (MNRE) for financial relief for affected projects.

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Detailed Insights:

• Renewable energy projects operating under Temporary General Network Access (T-GNA) can only schedule power if spare transmission capacity is available, leading to curtailment during network congestion.
• Developers report curtailment rates as high as 70-80% for T-GNA projects, severely impacting project viability and debt servicing capabilities.
• While renewable energy sources have "must-run" status, generation can be backed down for grid security or technical constraints, including transmission bottlenecks.
• Compensation is provided for grid-security-related backing down, but not for curtailment due to transmission bottlenecks, particularly for T-GNA projects.
• The SPDA has requested measures such as moratoriums on principal repayment, concessional bridge financing, extension of loan repayment tenures, and debt restructuring.
• India's ambitious target of 500 GW of non-fossil fuel capacity by 2030 necessitates robust transmission infrastructure to integrate renewable energy effectively.
• The Green Energy Corridors (GEC) project is a key government initiative aimed at strengthening the transmission network for large-scale renewable energy integration across various states.
• Challenges in transmission infrastructure development include land acquisition, right-of-way issues, and the slower pace of transmission line construction compared to rapid renewable energy project commissioning.

Key Concepts Involved:

• Power Evacuation: The process of transferring electricity from a power plant to the consumption point.
• Electricity Curtailment: The intentional reduction of power output from renewable energy generators.
• General Network Access (GNA): A framework providing firm transmission evacuation rights for Inter-State Transmission System (ISTS) connected renewable energy projects.
• Temporary General Network Access (T-GNA): A stopgap arrangement for renewable energy plants awaiting the commissioning of associated transmission infrastructure.