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CERC Allows SPVs to Submit Land & Financial Closure Documents for Connectivity Approval

The Central Electricity Regulatory Commission (CERC) has granted relief to renewable energy developers by allowing special purpose vehicles (SPVs) or subsidiaries to submit land ownership and financial closure documents for securing grid connectivity and general network access (GNA), in lieu of their parent companies. This interim relief will remain effective until the formal notification of the third amendment to the Connectivity and GNA to ISTS Regulations, 2022.

The directive came in response to petitions by Oyster Renewable Energy (OREPL) and Avaada Energy (AEPL), whose SPVs—Oyster Green Hybrid One and Avaada MPSustainable2—were denied approval by the Central Transmission Utility of India (CTUIL) under Regulation 11A, which previously required documents solely in the parent company's name. Both developers had already invested heavily and progressed significantly in project implementation.

The Commission exercised its powers to relax the regulation, noting no regulatory or commercial risks exist if SPVs are wholly owned subsidiaries of the connectivity grantee. CTUIL was ordered to process such submissions and return land bank guarantees within seven days. Connectivity bank guarantees will only be released upon project commissioning.

This decision aligns with upcoming regulatory amendments and offers critical flexibility for project structuring and execution in India’s RE sector.