India Cancels Grid Access for 17 GW Renewable Projects as Demand Soars — Here’s Why

India has cancelled the permission to connect about 17 gigawatts (GW) of delayed clean energy projects to the national electricity network for prioritizing the projects that are already operational or nearing completion, reported Retuers.

The state-run Central Transmission Utility of India Ltd (CTUIL) informed companies including Adani Green Energy, ReNew Power, NTPC, Avaada Group, JSW Energy and ACME Solar, about the cancellations, confirmed Reuters. The impacted projects are located in renewable-rich states such as Rajasthan, western Gujarat, and Madhya Pradesh in central India.

The grid access terminations were carried out in the June quarter after prior notices were issued to the companies, said the source, who requested anonymity as the firms are seeking relief from the federal power regulator, the Central Electricity Regulatory Commission (CERC).

Power Demand Keeps Rising

According to ET, India recorded a 4.3% year-on-year increase in power demand to about 150.5 billion units despite torrential rains reducing the air conditioning requirement in the country. Attributing the increase to a lower base, a government official told ET, that the demand in August was subdued.

Power consumption in the country was reported to be 153.6 billion units in July, with peak power demand increasing in August to 229.7 GW compared with 217 GW last year.

Considering India’s surging power demand, driven by rising incomes, mechanised farming, industrialisation, and urbanisation - has prompted New Delhi to streamline grid rules to better integrate clean energy projects and ensure uninterrupted electricity supply for its 1.4 billion people.

The country aims to more than double its non-fossil fuel power capacity to 500 GW by 2030. However, its transmission network, spanning about 495,000 circuit kilometres, is lagging the growth in generation capacity.

Transmission Bottlenecks Slow Progress

According to Reuters, experts warn that India’s move to cancel grid access for about 17 GW of delayed clean energy projects indicates a grave problem, persistent transmission bottlenecks and project slowdown risks that could undermine the investor confidence in the sector.

With over 50 GW of stranded capacity due to regulatory delays and incomplete infrastructure, the move may accelerate grid reform—but also signals urgency to ensure timely connectivity for future clean energy investments.