- India’s power ministry has proposed a rule requiring distribution companies to seek regulatory approval within 30 days of signing clean energy deals.
- The rule aims to reduce delays that hinder solar and wind projects, supporting India’s 500 GW clean energy goal by 2030.
India’s Ministry of Power has proposed a new rule that would require electricity distribution companies to act faster after signing power purchase agreements (PPAs) with clean energy developers, in a bid to speed up the rollout of renewable energy projects.
According to the draft rule dated June 25, distribution companies must apply for regulatory approval within 30 days of signing a deal with an intermediary, such as a government-backed renewable energy agency.
The move addresses long-standing industry concerns over delays by distribution firms, which have slowed down the commissioning of solar, wind, and other renewable energy projects.
India aims to install 500 gigawatts of non-fossil fuel capacity by 2030, nearly three times its current clean energy capacity. However, the sector faces persistent hurdles, including low participation in tenders, land acquisition issues, PPA delays, and project cancellations.
To ease the pressure on developers, the ministry proposed that if regulators fail to approve within 60 days of application or 120 days from signing the agreement, the project developer would be granted extra time to complete the project without facing penalties.
The power ministry has invited feedback on the draft rule from industry stakeholders by July 9.