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Karnataka High Court Quashes KERC’s Captive Status Verification Procedure

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					</table> The Grid Controller of India (<a href="https://grid-india.in/en/" target="_blank" rel="noopener">GRID India</a>) has issued draft procedures to assess the utilization of transmission connectivity granted to entities.
Stakeholders can submit their feedback by June 7, 2026.
GRID India issued the draft ‘Procedure for assessing the utilization of connectivity or the general network access quantum by the grantee’ to align with the Central Electricity Regulatory Commission’s (CERC) Connectivity and General Network Access (GNA) to the Inter-State transmission System Regulations, 2025.
The procedure details the utilization pattern of connectivity or GNA quantum by the grantees.
It applies to all connectivity and GNA grantees, as well as parent or subsidiary companies of the grantee, under whose name the project has been executed and registered as the user with the regional load dispatch centers (RLDC).
Under the proposed procedure, the RLDC will compute the transmission or GNA capacity utilization granted to developers by the last day of the month following the end of each quarter.
The utilization of connectivity or GNA will be determined on a block-wise basis and reported as a percentage of effective connectivity or GNA for each time block in a quarter. It will be calculated with reference to transmission connectivity used during solar hours, non-solar hours, or the full day.
If the connectivity grantee is a renewable energy park developer and the entire quantum of connectivity granted is allocated to more than one renewable energy project and/or energy storage system, the utilization of connectivity will be computed separately for each renewable energy power project or energy storage system.
If the entire quantum of connectivity granted to a renewable energy park developer has not been allocated to renewable energy projects/energy storage systems, the utilization of connectivity/GNA will be assessed to the extent of the allocated quantum. For the remaining unallocated connectivity quantum, the utilization will be computed at the level of the connectivity grantee, such as the renewable energy park developer.
For non-renewable energy projects, the percentage of effective connectivity for the quarter will be calculated after excluding schedules arising from ancillary services (DOWN), security-constrained economic dispatch (DOWN), security-constrained unit commitment (DOWN), and block-wise scheduling reductions due to transmission constraints, grid security, or force majeure.
For renewable energy projects, the percentage of connectivity utilization for the quarter will be calculated based on solar hours, non-solar hours, or full-day access.  It will be calculated based on block-wise scheduled power, after deducting schedules arising from ancillary services (DOWN) and reductions of schedules due to transmission constraints, grid security, and force majeure.
For entities drawing power from the grid apart from energy storage systems, the percentage of GNA/transmission connectivity utilization for the quarter will be calculated based on block-wise scheduled power, after deducting reductions in block-wise schedules due to transmission constraints, grid security, or a force majeure event.
For energy storage systems, the percentage of connectivity utilized during solar hours, non-solar hours, or a full day will be calculated separately based on power injections and withdrawals from the energy system. The percentage of connectivity utilization must also deduct schedules arising from ancillary services (DOWN) and reductions in schedules due to transmission constraints, grid security, or a force majeure event.
The time-duration curve of block-wise percentage utilization of connectivity during solar and non-solar hours, and for the full day, must be computed and submitted to the Central Electricity Regulatory Commission.
In another measure to address unutilized transmission capacity, the Central Electricity Regulatory Commission <a href="https://www.mercomindia.com/cerc-proposes-exit-auction-of-stalled-renewable-projects-with-grid-connectivity" target="_blank" rel="noopener">proposed</a> a one-time framework to address renewable energy projects that secured transmission connectivity under the GNA regulations based on Letters of Award, but for which power purchase agreements have not been signed within 12 months.
The push to free unutilized connectivity comes against the backdrop of rising concerns about inadequate grid infrastructure availability to support the growing renewable energy sector. According to data from the Central Electricity Authority, India <a href="https://www.mercomindia.com/transmission-line-additions-in-9m-fy-2026-meet-less-than-half-the-target?utm_source=chatgpt.com" target="_blank" rel="noopener">achieved</a> 47.5% of the cumulative target of 10,696 ckm set for the period April to December in the financial year 2025–26.

GRID India Drafts Rules to Assess Transmission Connectivity Utilization

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					</table>India made significant strides in strengthening its domestic upstream renewable energy supply chain and added substantial solar generation capacity in 2025. However, the renewable energy sector also faced several major challenges, including transmission infrastructure, solar curtailment, energy banking, and glitches in the PM Surya Ghar: Muft Bijli Yojana portal.
Power Curtailment
Between March and August this year, Rajasthan witnessed nearly 4 GW of solar and wind power curtailment due to a combination of transmission delays, corridor congestion, and subdued power demand during an extended monsoon season. The scale of curtailment led to significant financial losses for developers, estimated at ₹2.3 billion ($26.25 million) to ₹2.5 billion ($28.53 million) over the period.
Other major renewable energy states, including Gujarat, Maharashtra, and Tamil Nadu, also experienced 10%-30% curtailment during peak solar generation hours, highlighting the growing strain on grid infrastructure across regions.
These curtailments point to a broader national challenge, where renewable energy capacity additions have outpaced the expansion of transmission infrastructure, resulting in network saturation and time-block-based curtailment, even though renewables are classified as must-run resources.
In Rajasthan, the situation was further exacerbated by a delay of more than 18 months in commissioning a key transmission system strengthening program, which has constrained the evacuation of 8.1 GW of renewable power from a designated renewable energy zone, creating persistent bottlenecks in one of India’s most solar-rich states.
Grid Instability and Transformer Failure
In the third and fourth quarters of 2025, India’s electricity grid experienced persistent high-frequency conditions, with grid frequency remaining above the prescribed ceiling on 39 days. On these days, the frequency exceeded the Indian Electricity Grid Code (IEGC) band of 49.90 Hz to 50.05 Hz for more than 20% of the time, indicating sustained system imbalance.
The high-frequency episodes were primarily driven by increased solar power injection combined with limited operational flexibility to back down thermal generation to accommodate rising renewable energy output. The trend highlights growing challenges in real-time grid balancing as renewable penetration increases.
During the year, electricity distribution transformers recorded high failure rates, further stressing the power system. According to the Central Electricity Authority (CEA), the national distribution transformer failure rate averages around 10%, translating to nearly 1.3 million failures annually.
In a separate assessment, the CEA reported 17 power transformer failures at voltage levels of 220 kV and higher between January and June 2025. However, the authority cautioned that the actual number is likely higher, as many state, central, and private transmission utilities did not report all failure incidents.
Rising equipment costs have compounded these challenges. Transformer prices have more than doubled, increasing from around ₹140 million ($1.59 million) to ₹300 million ($3.41 million). Similarly, the cost of a gas-insulated switchgear bay rose sharply from ₹60 million ($684,000) to ₹150 million ($1.7 million). These escalating costs are affecting project timelines and increasing capital requirements for transmission infrastructure expansion.
Supply Chain Constraints
Long delivery timelines for transformers and switchgear, along with a shortage of Domestic Content Requirement (DCR)-compliant solar modules, delayed several renewable and transmission projects. Stakeholders reported mounting stress across the power sector supply chain, with component availability lagging demand for critical equipment, including transformers, control relay panels, transmission towers, insulators, and gas-insulated switchgear. Extended procurement timelines for these components have led to delays in both transmission infrastructure and power generation projects.
Transmission developers also faced prolonged equipment delivery schedules for key components such as circuit breakers, isolators, and control relay panels, compounded by a limited pool of quality manufacturers in the high-voltage and extra-high-voltage segments. Lead times for critical high-voltage equipment, including 220 kV and 400 kV switchyards, transformers, and isolators, stretched to around 20 months, adding further pressure to project execution timelines.
Module availability also tightened during the period as domestic DCR cell supply failed to keep pace with rising demand. While manufacturing capacity under the Approved List of Models and Manufacturers (ALMM) List I and II expanded, a significant portion of high-efficiency TOPCon production lines was already committed to PM-KUSUM and Central Public Sector Undertaking (CPSU) projects, limiting supplies available for inter-state transmission system (ISTS) and state-level tenders.
At the same time, developers reported continued shortages of mono PERC cells as Chinese manufacturers increasingly shifted production toward TOPCon technology, further constraining module availability for ongoing projects.
Phase-Out of ISTS Charges Waiver
In June this year, the government announced a phased withdrawal of ISTS charges waiver for renewable energy, energy storage, green hydrogen, and green ammonia projects. Under the revised framework, projects commissioned in successive years up to June 30, 2028, will be eligible for progressively lower waivers, declining from 75% to 25%, while projects commissioned after June 30, 2028, will no longer qualify for any ISTS charges waiver.
To secure the 100% waiver available before the deadline, many developers opted for partial commissioning of projects, banking on the possibility that the Ministry of New and Renewable Energy (MNRE) may grant deadline extensions.
The phased withdrawal raised concerns over higher landed power costs beyond 2028, particularly for projects reliant on interstate transmission. It has also created an uneven market environment, with developers rushing to lock in incentives while still facing execution bottlenecks.
Aggressive Bidding in BESS Auctions
Despite declining battery energy storage system (BESS) costs, the energy storage segment faced high upfront costs, supply chain vulnerabilities, and execution delays amid aggressive tendering within the year.
Aggressive bidding in BESS auctions raised fears about reduced project viability over 15–25 years.
Due to limited BESS manufacturing capabilities in India, the market continued to depend on imports, mainly from China.
Energy Banking Restrictions
Grid instability concerns prompted a few distribution companies to restrict banking facilities and encouraged the adoption of storage solutions. In Maharashtra, energy banking limits, adverse time-of-day tariffs, and open-access charges led commercial and industrial consumers to scale back investments.
Once a leader in rooftop solar under PM Surya Ghar: Muft Bijli Yojana, Kerala witnessed a sharp drop in installations after the Kerala State Electricity Regulatory Commission proposed limiting net metering to projects up to 3 kW. The Commission also mandated energy storage of up to 30% for projects between 3 kW and 5 kW.
Glitches in PM Surya Ghar Portal 
Incorporating DCR verification process with the PM Surya Ghar portal led to delays in project commissioning. The government&#8217;s efforts to ensure only DCR-compliant modules are used for PM Surya Ghar projects went awry as integration issues created problems for installers. Duplicate module serial numbers flooded the portal, preventing genuine installers from updating module details.
As cell manufacturers prioritized meeting export demand over meeting domestic supply, installers bore the brunt of severe DCR module supply shortages. Module costs rose, leading to overall project costs increasing, with DCR-compliance becoming the norm.
Land Acquisition and RoW Issues
Land acquisition continues to be a major hurdle for project development. Securing large, contiguous land parcels is particularly challenging due to fragmented landholdings, unclear ownership and title records, limited digitization of land records, and lengthy approval processes.
Transmission infrastructure projects are similarly affected, with landholder opposition and right-of-way disputes delaying several critical developments and slowing the pace of grid expansion needed to support renewable energy growth.

The Biggest Challenges India’s Renewable Energy Sector Faced in 2025

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					</table>The California Independent System Operator (<a href="https://www.caiso.com/" target="_blank" rel="noopener">CAISO</a>), the grid operator for most of the state, is increasingly curtailing solar and wind-powered electricity generation to balance supply and demand amid rapid renewable energy capacity growth, according to a report by the U.S. Energy Information Agency (<a href="https://www.eia.gov/todayinenergy/detail.php?id=65364" target="_blank" rel="noopener">EIA</a>).
The grid operator maintains a balance between power demand and supply and a stable electrical system.
<img loading="lazy" decoding="async" class="aligncenter wp-image-80192 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/EIA-article-1-.png" alt="" width="651" height="378" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/EIA-article-1-.png 651w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/EIA-article-1--300x174.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/EIA-article-1--624x362.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/EIA-article-1--600x348.png 600w" sizes="auto, (max-width: 651px) 100vw, 651px" />
The wind and solar output is reduced by price signals or through an order to reduce output. This reduction is generally implemented during periods of congestion when transmission lines lack sufficient capacity to deliver the available energy or during oversupply when generation exceeds demand.
In 2024, CAISO curtailed 3.4 million MWh of utility-scale wind and solar output, a 29% increase from the electricity curtailed in 2023.
CAISO also curtails solar generation to leave room for natural gas generation. A certain amount of natural gas generation must remain online throughout the day to comply with North American Electric Reliability Corporation reliability standards and to have sufficient generation available to ramp up in the evening hours.
In 2024, solar energy accounted for 93% of all energy curtailed by CAISO. The highest amount of solar energy was curtailed during spring, when solar output was relatively high, and electricity demand was low, as moderate spring temperatures reduced the need for space heating or air conditioning.
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In 2014, California had a total of 9.7 GW of installed wind and solar photovoltaic capacity. By the end of 2024, this figure had increased to 28.2 GW.
Solar energy supplies almost half of CAISO’s electricity demand between 8 AM and 4 PM. However, demand rises during the later evening hours as people return home from work and switch on appliances such as air conditioners, electric heaters, lights, ovens, computers, and televisions.
This demand is particularly noticeable on hot summer evenings after sunset when solar power is no longer being generated.
Ways of Curtailment
CAISO is trying to reduce curtailments in the following ways:
<ul>
<li>Trading with neighboring balancing authorities to try to sell excess solar and wind power</li>
<li>Incorporating battery storage into ancillary services, energy, and capacity markets</li>
<li>Including curtailment reduction in transmission planning</li>
</ul>
Additionally, companies are planning to use excess renewable energy to make hydrogen, some of which will be stored and mixed with natural gas for summer generation at the interstate Intermountain Power Project’s new facility, scheduled to come online in July.
CAISO is also promoting the addition of flexible resources that can quickly respond to sudden changes in demand.
Battery storage may also come online, allowing some renewable energy to be stored and used four to eight hours later in the day.  CAISO’s battery capacity was 11.6 GW in 2024, rising 45% from 8.0 GW in 2023.
EIA said it is common for daily electricity generation to outpace consumption during the springtime. Without increased transmission capacity or long-term storage solutions, significant curtailments may still happen during this season.
The U.S. installed a <a href="https://www.mercomindia.com/us-adds-50-gw-of-new-solar-capacity-in-2024-a-21-yoy-growth" target="_blank" rel="noopener">record</a> 50 GW of new solar capacity in 2024, a 21% year-over-year increase, according to the Solar Energy Industries Association’s U.S. Solar Market Insight 2024 Year in Review report. The country <a href="https://www.mercomindia.com/global-wind-turbine-installations-hit-a-record-121-6-gw-in-2024-report" target="_blank" rel="noopener">added</a> 5.4 GW of wind capacity in 2024.

California Grid Operator Curtails Solar and Wind Power to Maintain Grid Stability

curtailments

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