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Draft Procedure for Approval of Change in Renewable Energy Source(s) for Projects with Granted Connectivity – EQ

Draft Procedure for Approval of Change in Renewable Energy Source(s) for Projects with Granted Connectivity – EQ

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Summary:

### 1. Regulatory Intent & Business Objective

* CTUIL has introduced a formal mechanism to **allow renewable energy developers to change their declared energy source** (Solar, Wind, Hybrid, with/without ESS) **without altering the approved connectivity capacity**.
* The move provides **commercial flexibility** to developers responding to market conditions, PPA requirements, technology evolution, or policy changes, while protecting ISTS planning integrity.

### 2. Scope of Permissible Changes

* Developers can **fully or partially modify** their approved renewable energy source composition.
* Allowed changes include:

* Solar ↔ Wind ↔ Hybrid conversion
* Addition or removal of **Energy Storage Systems (ESS)**
* Reallocation of MW capacity across sources within the same connectivity quantum.
* Applies to projects **already granted in-principle or final connectivity** but **not yet commissioned**.

### 3. Key Commercial Conditions Developers Must Note

* **Only one source change allowed per connectivity grant**, making the decision strategic and irreversible.
* **No increase in connectivity capacity** is permitted under any circumstances.
* **No extension of connectivity start date or post-grant timelines** will be allowed due to source change.
* Projects already injecting power into the grid are **not eligible**.

### 4. Time Window & Strategic Deadlines

* Applications must be filed:

* Within **18 months of in-principle connectivity**, or
* **18 months prior to the firm connectivity start date**, whichever is later.
* A **one-time relaxation** is provided as per CERC Order dated 08.12.2025.
* Missing the window could result in **loss of flexibility and stranded commercial opportunity**.

### 5. Application Process & Platform

* Applications to be submitted via the **NSWS portal** using **FORMAT CONN-SC**.
* Until the portal is operational, applications may be submitted on **company letterhead**, with the submission date considered up to 24:00 hours.
* **No application fee**, reducing administrative and financial burden.

### 6. Land & PPA-Linked Risk Considerations

* Source change will be **rejected** if the new source requires **more than 50% additional land** compared to documents already submitted.
* Exception allowed **only if mandated by a awarded LOA or signed PPA**.
* This clause directly impacts **project site strategy, land banking, and acquisition costs**.

### 7. Grid Access & Priority Implications

* Solar-hour-only connectivity holders can change source **only if non-solar hour margins are still available** at the grid node.
* Priority between:

* Source-change applications, and
* Fresh non-solar connectivity applications
will be decided based on **timestamp order**, impacting competitive positioning.

### 8. Post-Approval Compliance & Financial Risk

* After approval, developers must:

* Submit **updated technical connection data** at least **one year before SCOD**.
* Sign an **amended Connectivity Agreement within 30 days**.
* Failure to comply may lead to **revocation of connectivity**, directly affecting project bankability and lender confidence.

### 9. Technical Rejection Risks

* CTUIL may reject applications if:

* Grid margins (solar/non-solar) at the sub-station or ISTS level are exceeded.
* System studies find the revised configuration **technically infeasible**.
* Rejection reasons must be formally recorded, ensuring transparency but adding **technical due-diligence responsibility** on developers.

### 10. Documentation & Corporate Governance Requirements

* Mandatory submissions include:

* Board Resolution authorizing the change
* Updated project profile and source mix
* Revised land documents
* Updated financial closure and cost/MW
* Detailed technical parameters and simulation data
* Declaration of no increase in connectivity quantum
* Ensures **strong governance, lender alignment, and regulatory audit readiness**.

For more information please see below link:

Anand Gupta Editor - EQ Int'l Media Network