India Cancels 6.3 GW Clean Energy Grid Permissions Amid Transmission Crunch Since 2022

India's Ministry of Power has nixed connectivity approvals for 6.3 GW of renewable energy capacity since 2022, signaling a crackdown on delayed projects amid surging demand and grid constraints. The Central Transmission Utility of India Ltd (CTUIL) revoked these permissions to favor operational or near-complete initiatives, particularly in renewable hotspots like Rajasthan, Gujarat, and Madhya Pradesh. This follows broader challenges, with over 50 GW of clean energy stranded as of mid-2025 due to lagging transmission infrastructure—a 42% shortfall in planned lines.​

 

The move aligns with revised regulations prohibiting grid access trading and mandating developer control until commissioning. Recent CERC guidelines emphasize Power Purchase Agreements (PPAs) for connectivity, targeting 31.8 GW of tentative approvals without firm offtake. Despite adding 31.2 GW non-fossil capacity in FY25-26 so far, network gaps risk curtailment and higher costs, underscoring the need for unified planning and energy storage.​

 

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Sources: Reuters, PV Tech, Mercom India, IEEFA Report