UERC Rejects Plea to Relax 1 MW Rooftop Solar Cap for Net Metering

Singareni Collieries Floats O&M Tender for 5 MW Floating Solar Project

Andhra Pradesh Tenders 1.2 GW Rooftop Solar Projects Under PM Surya Ghar

Rajasthan Regulator Approves Tariffs for 229 MW Solar Projects under KUSUM

WorldOne Energies to Set Up 1 GW Solar Module Facility in Canada

NTPC Green Issues O&M Tender for 160 MW Solar Project

Accelerating India’s Net Zero Strategy with Energy Storage and Green Hydrogen

Daily News Wrap-Up: India Grew Energy Storage Capacity by 341 MWh in 2024

MCX to Start Electricity Futures Trading from July 10, 2025

Funding and M&A Roundup: Opdenergy Secures $412 Million


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/07/amazon_polly_81686.mp3?version=1752039848">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>The Multi Commodity Exchange of India (<a href="https://www.mcxindia.com/" target="_blank" rel="noopener">MCX</a>), a commodity derivatives and options exchange, will launch electricity futures contracts from  July 10, 2025, enabling power producers, distributors, and large power consumers to manage risks associated with price volatility.</p>
<p>The exchange had <a href="https://www.mercomindia.com/mcx-gets-sebi-nod-to-trade-electricity-derivatives">received</a> approval from the Securities and Exchange Board of India <a href="https://www.sebi.gov.in/" target="_blank" rel="noopener">(SEBI)</a> in June to launch electricity derivatives.</p>
<p>Electricity futures are financial instruments that derive their value from electricity prices and are primarily used for hedging, speculation, or arbitrage.</p>
<p>MCX stated that the electricity futures contracts aim to meet the growing demand for structured electricity price risk management instruments.</p>
<p>India’s power sector has until now relied on long-term power purchase agreements to mitigate price volatility. These contracts offer price stability but lack adaptability, as they do not reflect changing supply and demand conditions. The short-term power market, facilitated by power exchanges, has become increasingly unpredictable, posing risks for both generators and consumers.</p>
<p>Electricity future contracts are seen as a potential solution to these challenges.</p>
<p>These contracts will be available throughout the year. Its trading will be initially opened for the current and the following three months. The trades will occur in units of 50 MWh, with the smallest change in price (tick size) of ₹1 (~$0.012)/MWh.</p>
<p>The contracts will be settled in cash, with the amount based on the volume-weighted average of the unconstrained market-clearing price at the Indian Energy Exchange’s Day-ahead market. This will cover all days of the expiry month.</p>
<p>MCX stated that the contract will adhere to SEBI’s daily price limits for market stability. Its initial price slab will be 6% and can be extended to 9%. The contract will have a minimum 10% initial margin requirement or a volatility’ value at risk’ margin, whichever is higher.  The client-level position limits will be capped at 300,000 MWh or 5% of the market-wide open interest, whichever is greater.</p>



					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/07/amazon_polly_81544.mp3?version=1751637544">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>The Tamil Nadu Electricity Regulatory Commission (<a href="https://www.tnerc.tn.gov.in/website/" target="_blank" rel="noopener">TNERC</a>) has increased the retail supply tariff for commercial and industrial consumers by approximately 3.16%.</p>
<p>The tariff revision will take effect from July 1, 2025.</p>
<p>The tariff increase is part of the multi-year tariff framework introduced in 2022, which allows for inflation-indexed annual revisions capped at 6%.</p>
<p>The tariff for industrial category consumers has been increased by 3.4% to ₹7.5 (~$0.087)/kWh in FY 2026 from ₹7.25 (~$0.084)/kWh. Demand charges have increased to ₹608 (~$7.09)/kVA/month from ₹589 (~$6.8)/kVA/month.</p>
<p>The commercial category consumers also witnessed a 3.3% growth in the FY 2026 tariff to ₹9.4 (~$0.109)/kWh from ₹9.1 (~$0.106)/kWh in FY 2025. Demand charges have increased to ₹608 (~$7.09)/)/kVA/month from ₹589 (~$6.8)/kVA/month.<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/TNERC-tariff.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81548 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/TNERC-tariff.png" alt="" width="716" height="195" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/TNERC-tariff.png 716w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/TNERC-tariff-300x82.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/TNERC-tariff-650x177.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/TNERC-tariff-624x170.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/TNERC-tariff-600x163.png 600w" sizes="(max-width: 716px) 100vw, 716px" /></a></p>
<p>The tariff for domestic consumers was hiked within the range of ₹4.95 (~$0.057)/kWh and ₹12.15 (~$0.141)/kWh. However, the government will absorb the hike. This effectively means that domestic consumers will continue to pay the existing tariff. The state government will compensate the Tamil Nadu Power Distribution Corporation for the revenue loss by providing an additional subsidy.</p>
<p>However, the following  consumer categories are also exempted from the tariff increase for one year:</p>
<ul>
<li>Cottage and tiny industries, power loom industries</li>
<li>Industries up to 50 kW</li>
<li>Miscellaneous/general purpose consumers for consumption up to 500 units bimonthly</li>
</ul>
<p>Wheeling charges have been set at ₹1.04 (~$0.012)/kWh for high-tension consumers and ₹1.6 (~$0.018)/kWh for low-tension consumers.</p>
<p>A cross-subsidy surcharge of ₹1.99 (~$0.023)/kWh has set for industrial consumers and ₹2.57 (~$0.03)/kWh for commercial consumers.</p>
<p>All HT consumers, except HT-IIA (Lift irrigation), HT-IV, and HT-V (EV Charging station), will be billed an additional 25% for FY 2023-2027 on energy charges recorded during peak hours.</p>
<p>There will also be a 5% rebate on energy charges consumed between 10 PM and 5 PM as an incentive for night consumption.</p>
<p>Consumers under HT Tariff I, II(A), II(B), III, and V who request a Green Energy Consumption certificate will be charged at 110% of the approved tariff for the respective category.</p>
<p><strong>EV Charging Stations</strong></p>
<p>Demand charges for high-tension electricity to support EV charging stations have been reduced by 50% to ₹145 (~$1.69)/kVA/month from ₹304 (~$3.54)/kVA/month.</p>
<p>The energy charges applicable for EV charging stations have been revised as follows:</p>
<ul>
<li>6:00 to 9:00 and 18:00 to 22:00- ₹9.75 (~$0.113)/kWh 9:00 to16:00- ₹6.5 (~$0.075)/kWh 16:00 to 18:00 and 22:00 to 6:00- ₹8.1 (~$0.094)/kWh If EV charging stations under low-tension electricity connection avail power from 06:00 to 09:00 and 18:00 to 22:00, and up to 50 kW, the energy charges have increased to ₹9.75 (~$0.113)/kWh from ₹9.45 (~$0.110)/kWh The fixed charges have also risen to ₹55 (~$0.64)/kWh/month from ₹26 (~$0.3)/kW/month.</li>
</ul>
<p>V charging stations under low tension electricity connection availing power from 09.00 to 16.00, and above 50-112 kW, will be billed at  ₹6.5 (~$0.07)/kWh. The fixed charges have been  increased to ₹165 (~$1.92)/kWh/month from ₹79 (~$0.92)/kW/month.</p>
<p>EV charging stations under low tension electricity connection availing power from 16:00 to 18:00 and 22.00 to 06.00, and above 112 kW, will be billed at ₹8.1 (~$0.09)/kWh. The fixed charges have gone up to ₹304 (~$3.54)/kWh/month from ₹145 (~$1.69)/kW/month.</p>
<p>In December 2024, the Tamil Nadu Electricity Regulatory Commission <a href="https://www.mercomindia.com/additional-surcharge-nadu-increased-to-%E2%82%B90-54-kwh" target="_blank" rel="noopener">issued</a> an order setting the additional surcharge for open access consumers at ₹0.54 (~$0.0063)/kWh, effective from December 12, 2024, until March 31, 2025.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>


Tamil Nadu Hikes FY 2026 Electricity Tariffs by 3.16%


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/07/amazon_polly_81522.mp3?version=1751610439">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p><a href="https://bajelprojects.com/" target="_blank" rel="noopener">Bajel Projects</a> has secured an engineering, procurement, and construction (EPC) order for package TL04 of the Siwani-Jind (PG) 400 kV double-circuit (quad) transmission line from Power Grid Corporation of India (<a href="https://www.powergrid.in" target="_blank" rel="noopener">PGCIL</a>).</p>
<p>The order’s value is between ₹3 billion (~$34.88 million) and ₹4 billion (~$46.51 million).</p>
<p>The EPC order is part of the transmission projects <a href="https://www.mercomindia.com/pgcil-bags-projects-to-evacuate-12-gw-of-renewable-energy-from-rajasthan" target="_blank" rel="noopener">won</a> by PGCIL from REC Power Development and Consultancy in October 2024 to evacuate a cumulative 12 GW of power from the Renewable Energy Zone (REZ) Phase-IV in Rajasthan. The company bagged the tenders for two transmission projects of 6 GW each in the state’s Bikaner complex.</p>
<p>PGCIL placed the order on behalf of its special purpose vehicle, POWERGRID Siwani Transmission.</p>
<p>The scope of work entails setting up the new 765/400 kV Siwani substation. It also includes providing the following:</p>
<ul>
<li>A static synchronous compensator</li>
<li>A 765 kV DC transmission line traversing Rajasthan and Haryana</li>
<li>Various 400 kV DC transmission lines traversing through Haryana</li>
</ul>
<p>Bajel Projects must conduct bay extension works for the transmission lines at other existing substations in Rajasthan and Haryana. It must also construct a 400 kV transmission line spanning approximately 99 km.</p>
<p>The project must be completed within 18 months.</p>
<p>Bajel Projects has four business verticals – power transmission, distribution, monopoles, and international EPC. It has executed high-voltage and extra high-voltage transmission projects and substations.</p>
<p>In February this year, PGCIL <a title="https://www.mercomindia.com/pgcil-wins-two-transmission-projects-in-karnataka-and-rajasthan" href="https://www.mercomindia.com/pgcil-wins-two-transmission-projects-in-karnataka-and-rajasthan" target="_blank" rel="noreferrer noopener">bagged</a> two transmission projects from PFC Consulting to evacuate 15.5 GW of power from renewable energy zones in Karnataka and Rajasthan. The transmission project in Rajasthan involved augmenting interconnection transformers at various substations to facilitate the evacuation of power from the REZ Phase-IV. The Ministry of New and Renewable Energy identified 75 GW of renewable energy potential in the state for evacuation.</p>
<p>Last December, PGCIL was <a href="https://www.mercomindia.com/pgcil-bags-project-to-strengthen-transmission-system-in-karnataka" target="_blank" rel="noopener">awarded </a>PFC Consulting’s interstate transmission system strengthening project to evacuate renewable energy from Gadag and Koppal regions in Karnataka.</p>


Bajel Projects Wins Renewable Energy Transmission EPC Order


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/07/amazon_polly_81462.mp3?version=1751464746">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p><a href="https://hartek.com/" target="_blank" rel="noopener">Hartek Group</a>, an engineering, procurement, and construction (EPC) company, has secured a contract worth ₹1.38 billion (~$16.05 million) from the Power Grid Corporation of India (<a href="https://www.powergrid.in/en" target="_blank" rel="noopener">PGCIL</a>) to develop a 400 kV air-insulated substation (AIS).</p>
<p>In February this year, PGCIL had <a href="https://www.mercomindia.com/pgcil-wins-two-transmission-projects-in-karnataka-and-rajasthan" target="_blank" rel="noopener">won</a> the transmission project from <a href="https://www.pfcclindia.com/" target="_blank" rel="noopener">PFC Consulting</a>. This substation is part of the transmission program to integrate renewable energy zones in Davanagere, Chitradurga, and Ballari districts of Karnataka. The Ministry of New and Renewable Energy has identified 17 GW of renewable energy potential in Karnataka.</p>
<p>The scope of work under this contract includes the design, engineering, procurement, construction, testing at the manufacturer’s works, supply, unloading, storage, erection, testing, and commissioning of the 400 kV AIS. The project will be delivered on a turnkey basis.</p>
<p>Hartek said that once completed, the substation will facilitate the seamless transmission of green electricity across the region, enhance grid stability, reduce transmission losses, and lower the overall cost of clean energy for end-users.</p>
<p>The company added that it has connected over 10 GW of solar power to the national grid and installed 200 MW of rooftop solar capacity across the country.</p>
<p>In May this year, Hartek Group <a href="https://www.mercomindia.com/leading-solar-epc-companies-2024" target="_blank" rel="noopener">emerged</a> as one of the top utility-scale solar engineering, procurement, and construction service providers in 2024, according to Mercom’s recently released India Solar Market Leaderboard 2025 Report.</p>
<p>It bagged an EPC contract to develop a 300 MW ground-mount solar project in Rajasthan, valued at ₹4.7 billion (~$55.3 million) in 2024.</p>
<p>In January, Hartek Group’s commercial and industrial rooftop solar business <a href="https://www.mercomindia.com/hartek-wins-epc-contract-for-8-mw-rooftop-solar-project-in-jk" target="_blank" rel="noopener">won</a> a solar EPC contract from Kandhari Beverages for an 8 MW rooftop solar installation project in Jammu and Kashmir.</p>
<p>In February 2024, Hartek <a href="https://www.mercomindia.com/hartek-power-secures-solar-project-from-sjvn" target="_blank" rel="noopener">secured</a> an order from SJVN Green Energy to develop, implement, and maintain a 75 MW grid-connected solar power project and a 132 kV substation in Jamui, Bihar.</p>


Hartek Bags ₹1.38 Billion Substation Contract from PGCIL in Karnataka


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/07/amazon_polly_81399.mp3?version=1752036876">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>Electric vehicle (EV) sales in India reached 530,386 units in the second quarter (Q2) of 2025, an over 34% year-over-year (YoY) increase from 396,719 units.</p>
<p>EVs accounted for 8% of the overall automobile sales, which totaled 6,554,775 units in Q2 2025, according to data released by the <a href="https://morth.nic.in/" target="_blank" rel="noopener">Ministry of Road Transport and Highways</a> through its <a href="https://vahan.parivahan.gov.in/vahan4dashboard/vahan/dashboardview.xhtml" target="_blank" rel="noopener">Vahan Dashboard</a>.</p>
<p>India now has over 6.44 million registered EVs.</p>
<p><strong>Electric Two-Wheelers</strong></p>
<p>Electric two-wheelers comprised nearly 56% (298,690) of the total EVs sold during the quarter.</p>
<p><a href="https://www.tvsmotor.com/" target="_blank" rel="noopener">TVS</a> led the segment with sales of 69,997 units, followed by <a href="https://www.bajajauto.com/" target="_blank" rel="noopener">Bajaj Auto</a> with 64,099 units. <a href="https://www.olaelectric.com/" target="_blank" rel="noopener">Ola</a> (58,534), <a href="https://www.atherenergy.com/" target="_blank" rel="noopener">Ather</a> (40,864), and <a href="https://www.heromotocorp.com/en-in.html" target="_blank" rel="noopener">Hero Motocorp </a>(20,997) were among the other companies that registered significant sales.</p>
<p><strong>Electric Three-Wheelers</strong></p>
<p>Electric three-wheelers constituted 36% (189,114) of all EVs sold in Q2 2025.</p>
<p><a href="https://mahindralastmilemobility.com/" target="_blank" rel="noopener">Mahindra Last Mile Mobility</a> led this category, selling 19,489 units, followed by <a href="https://www.bajajauto.com/three-wheelers/ev-re" target="_blank" rel="noopener">Bajaj Auto</a> (18,282),  <a href="https://www.ycevehicles.com/" target="_blank" rel="noopener">YC Electric</a> (10,354),  <a href="https://www.saeraauto.com/" target="_blank" rel="noopener">Saera Electric Auto</a> (5,804), and <a href="https://www.citylifeev.com/" target="_blank" rel="noopener">Dilli Electric Auto</a> (5,166).</p>
<p><strong>Electric Four-Wheelers</strong></p>
<p>Electric four-wheelers accounted for 7% of the total sales, reaching 37,960 units.</p>
<p><a href="https://www.tatamotors.com/" target="_blank" rel="noopener">Tata Motors</a> remained the most preferred electric four-wheeler automobile maker, with 13,120 units sold. <a href="https://www.mgmotor.co.in/" target="_blank" rel="noopener">MG Motor</a>  (11,538),  <a href="https://www.mahindra.com/our-business/automotive" target="_blank" rel="noopener">Mahindra &amp; Mahindra</a> (8,348), <a href="https://www.hyundai.com/in/en" target="_blank" rel="noopener">Hyundai</a> (1,884), and <a href="https://bydautoindia.com/" target="_blank" rel="noopener">BYD India</a> (1,324) were among the other top performers.</p>
<p>EV sales in India <a href="https://www.mercomindia.com/electric-vehicle-sales-q1-2025/" target="_blank" rel="noopener">reached</a> 514,198 units in Q1 2025, an over 3% YoY from 499,930 units.</p>
<p>The Ministry of Heavy Industries (MHI) recently <a href="https://www.mercomindia.com/government-opens-doors-to-global-electric-car-makers-with-portal-launch/" target="_blank" rel="noopener">launched</a> the application portal for the ‘Scheme to Promote Manufacturing of Electric Passenger Cars in India,’ inviting global and domestic manufacturers to establish EV production facilities in the country.</p>
<p>Companies seeking to participate in this program must <a href="https://www.mercomindia.com/heavy-industries-ministry-issues-guidelines-for-electric-car-manufacturing/" target="_blank" rel="noopener">commit</a> ₹41.5 billion (~$486 million) within three years from the application approval date to establish EV manufacturing facilities for electric passenger cars.</p>
<p>MHI has <a href="https://www.mercomindia.com/mhi-mandates-100-dcr-requirement-for-18-ev-components-under-pm-e-drive" target="_blank" rel="noopener">mandated</a> a 100% domestic content requirement for 18 EV components under the two-wheeler, three-wheeler, and e-bus segments to be eligible for a subsidy under the PM E-Drive program.</p>


Electric Vehicle Sales Clock 34% YoY Growth in Q2 2025


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/07/amazon_polly_81388.mp3?version=1751354929">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>Distribution companies (DISCOMs) owed power generators ₹581.33 billion (~$6.78 billion) in total dues for the monthly billing cycle in June 2025, according to the <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a>’s payment ratification and analysis portal <a href="https://praapti.in/" target="_blank" rel="noopener">PRAAPTI</a>.</p>
<p>The outstanding dues, excluding the latest monthly dues of ₹365.32 billion (~$4.26 billion), amount to ₹216 billion (~$2.52 billion).</p>
<p>The overdue amount before the trigger date is ₹215.95 billion (~$2.52 billion); after this date, the amount will increase by ₹57.69 million (~$673,684) due to the late payment surcharge.</p>
<p>The trigger date is one month after the payment due date or two and a half months after the generating company presents the bill, whichever is later.</p>
<p>The DISCOMs are allowed to pay the outstanding amount in up to 48 installments.</p>
<p>Uttar Pradesh DISCOMs had the highest dues at ₹86.81 billion (~$1.01 billion), followed by Telangana at ₹59.08 billion (~$689.87 million), Andhra Pradesh at ₹58.87 billion (~$687.46 million), and Maharashtra at ₹51.03 billion (~$595.87 million).</p>
<p>In the Ministry of Power’s thirteenth annual integrated ratings, Gujarat’s four DISCOMs <a href="https://www.mercomindia.com/gujarat-discoms-continue-to-top-annual-ratings-telangana-lags-behind/" target="_blank" rel="noopener">retained</a> their A+ ratings. Four of the top-rated DISCOMs are from Gujarat, three from Odisha, two from Haryana, and one each from Maharashtra and Uttar Pradesh. All  DISCOMs in Andhra Pradesh and Telangana were downgraded in the latest ratings.</p>
<p>In November last year, the Grid Controller of India <a href="https://www.mercomindia.com/update-rules-late-payment-surcharge/" target="_blank" rel="noopener">released</a> an updated procedure to implement the Electricity (Late Payment Surcharge and Related Matters) Rules 2022 and subsequent amendments. The procedure applies to intra-state and inter-state generators, licensees, and distribution entities, focusing on payment security, power scheduling, and addressing non-payment scenarios.</p>
<p>In October last year, the Ministry of Power <a href="https://www.mercomindia.com/rules-strengthen-discoms-financial-disclosure" target="_blank" rel="noopener">issued</a> the Electricity Distribution (Accounts and Additional Disclosure) Rules to improve transparency in financial disclosures and support regulatory compliance for DISCOMs. The rules aim to ensure financial safeguards against long-term defaults by mandating provisions for receivables and enforcing the reporting of trade receivable days.</p>


DISCOMs Owed Power Generators ₹581 Billion in June 2025


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/06/amazon_polly_81340.mp3?version=1751274146">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>The Gujarat Electricity Regulatory Commission (<a href="https://gercin.org/" target="_blank" rel="noopener">GERC</a>) has granted a 343-day extension for a 70 MW wind-solar hybrid project to establish its evacuation infrastructure, including the 66 kV transmission line, associated bays, and metering systems.</p>
<p>The Commission acknowledged that the petitioner&#8217;s delays were largely due to uncontrollable and unforeseen events, including statutory and regulatory bottlenecks.</p>
<p>The Commission directed Gujarat Energy Transmission Corporation (GETCO) not to revoke the petitioner&#8217;s grid connectivity or encash its bank guarantees during this extended timeline, if the petitioner is willing to pay long-term transmission charges until at least 10% of the project capacity is commissioned.</p>
<p><strong>Background </strong></p>
<p>FSGE Renewable is the developer of a 70 MW wind-solar hybrid project being executed under captive use in Gujarat&#8217;s Amreli District. The project was granted Stage I and Stage II grid connectivity at the 220 kV Rajula substation, operated by GETCO. The developer was required to complete all associated evacuation infrastructure by March 11, 2025.</p>
<p>However, the petitioner approached the Commission seeking a 120-day extension to the deadline. FSGE cited multiple delays that were beyond their control. The first was a lack of clarity on energy banking regulations under the green energy open access framework, which led to investor hesitancy and delayed financial closure.</p>
<p>Second, a global market disruption led to a delay in the delivery of circuit breakers, which were essential for completing the transmission infrastructure.</p>
<p>The petitioner also faced right-of-way (RoW) challenges, including strong opposition from local farmers and landowners, which led to legal disputes and intervention by the District Collector of Amreli. There was also an extended delay in obtaining a no-objection certificate from the Forest Department due to parts of the transmission route falling within a newly proposed eco-sensitive buffer zone.</p>
<p>FSGE emphasized that it had proactively sought statutory approvals under Sections 68 and 164 of the Electricity Act, and kept GETCO informed of its actions. The company claimed that these delays constituted force majeure events, and therefore justified deadline extensions.</p>
<p>Opposing the petition, GETCO argued that the delays were foreseeable and attributable to the petitioner&#8217;s lack of diligence. It pointed out that FSGE initiated construction without securing all permissions and only approached the Commission at the last minute.</p>
<p>GETCO contended that neither the applicable regulations nor the detailed procedures for grid connectivity explicitly provided for a force majeure clause, and therefore, the petitioner could not seek relief on that basis.</p>
<p>It also highlighted that the banking regulation issue should not have affected the development of evacuation infrastructure, and that other project developers had managed to commission their infrastructure on time despite similar circumstances.</p>
<p><strong>Commission&#8217;s Analysis </strong></p>
<p>The Commission acknowledged that the applicable connectivity and tariff procedures do not contain a specific clause on force majeure. However, it had the  discretion to consider genuine delays arising from unforeseen and uncontrollable factors.</p>
<p>The Commission conducted a detailed breakdown of the delays. It first recognized a 98-day delay, caused by a Ministry of Defence notification that disrupted land layout planning. Next, it acknowledged a 34-day delay during which the Forest Department failed to provide timely clearance due to the route intersecting newly proposed buffer zones around wildlife sanctuaries.</p>
<p>The Commission then examined delays stemming from statutory approvals under Sections 68 and 164 of the Electricity Act, necessary for constructing transmission lines. It found that the petitioner only received these approvals on December 21, 2024, resulting in an 86-day delay.</p>
<p>It also noted that although GETCO provided standard drawings for transmission construction by mid-December 2024, delays in approval processes and procedural compliance on both sides added to the slowdown.</p>
<p>Most critically, the Commission found that RoW issues, beginning in late January 2025, remained unresolved as of June 2025, and resulted in a further 151-day delay. It emphasized that local resistance and administrative hurdles were not within the petitioner&#8217;s control and thus merited accommodation.</p>
<p>Summing all these periods, the Commission calculated that the petitioner had suffered a cumulative delay of 343 days due to legitimate and substantiated causes.</p>
<p>In a similar case, the Commission had recently <a href="https://www.mercomindia.com/gerc-grants-465-day-extension-100-mw-wind-solar-project/" target="_blank" rel="noopener">granted</a> a 465-day extension to set up an evacuation line along with bays and a metering system for a 100 MW wind-solar hybrid power project in Gujarat.</p>
<p>Subscribe to Mercom&#8217;s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don&#8217;t miss any critical updates from the renewable industry.</p>


Gujarat Regulator Grants 343-Day Extension for 70 MW Wind-Solar Project


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/06/amazon_polly_81303.mp3?version=1751029417">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>The Ministry of Heavy Industries (<a href="https://heavyindustries.gov.in/" target="_blank" rel="noopener">MHI</a>) has launched the application portal for the ‘Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI),’ inviting global and domestic manufacturers to establish electric vehicle (EV) production facilities in the country.</p>
<p>The application portal will remain active until October 21, 2025.</p>
<p>The program aims to attract major global EV manufacturers by offering a reduced customs duty structure and a policy framework that encourages long-term investments in India’s automotive sector.</p>
<p>MHI had recently MHI had recently <a title="https://www.mercomindia.com/heavy-industries-ministry-issues-guidelines-for-electric-car-manufacturing" href="https://www.mercomindia.com/heavy-industries-ministry-issues-guidelines-for-electric-car-manufacturing" target="_blank" rel="noreferrer noopener">issued</a> guidelines for SPMEPCI. Investments under this program must target domestic manufacturing of eligible products. If the program’s investment is directed towards a brownfield project, there must be a clear physical separation from current manufacturing facilities.</p>
<p>The guidelines also allow applicants to import completely built units of electric four-wheelers with a minimum cost, insurance, and freight value of $35,000 (~₹2.99 million) at a reduced customs duty rate of 15% for five years from the date of application approval.</p>
<p>To qualify for the program, manufacturers must commit a minimum investment of ₹41.5 billion (~$485.33 million). The program also includes clear domestic value addition targets and requires applicants to meet specified localization milestones to support the ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives.</p>
<p>These provisions are designed to ensure that the development of domestic capabilities accompanies the transfer of EV technology. They also aim to ensure that India benefits from both foreign direct investment and increased local innovation.</p>
<p>Earlier this year, the Ministry <a href="https://www.mercomindia.com/mhi-mandates-100-dcr-requirement-for-18-ev-components-under-pm-e-drive" target="_blank" rel="noopener">mandated</a> a 100% domestic content requirement for 18 electric vehicle components under the two-wheeler, three-wheeler, and e-bus segments to be eligible for a subsidy under the PM E-Drive program.</p>
<p>EV sales in India <a href="https://www.mercomindia.com/electric-vehicle-sales-2024" target="_blank" rel="noopener">reached</a> a record 1.95 million units in 2024, representing an over 27% year-over-year growth from the 1.53 million units sold in 2023. These vehicles accounted for 3.6% of overall automobile sales, according to data released by the Ministry of Road Transport and Highways through its Vahan Dashboard.</p>


Government Opens Doors to Global Electric Car Makers with Portal Launch


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/06/amazon_polly_81269.mp3?version=1751521655">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>The Central Electricity Regulatory Commission (<a href="https://cercind.gov.in/" target="_blank" rel="noopener">CERC</a>) has issued a time frame for waiving interstate transmission (ISTS) charges for renewable energy, energy storage projects, green hydrogen, and green ammonia.</p>
<p>Renewable energy generation stations based on wind, solar, or hybrid sources are eligible for waivers based on their commissioning date. Projects commissioned on or before June 30, 2025, will receive a full waiver for 25 years.</p>
<p>Projects commissioned in successive years up to June 30, 2028, will receive progressively lower waivers, reducing from 75% to 25%. Projects commissioned after June 30, 2028, are not eligible for a waiver.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-1-2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81295 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-1-2.png" alt="ISTS 1" width="603" height="406" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-1-2.png 603w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-1-2-300x202.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-1-2-600x404.png 600w" sizes="(max-width: 603px) 100vw, 603px" /></a></p>
<p><strong>Energy Storage</strong></p>
<p>The amended provisions also cover energy storage systems (ESS). Pumped storage projects awarded for construction by June 30, 2028, will receive a 25-year waiver.</p>
<p>Battery energy storage systems (BESS) will be treated differently based on their connection and charging source. BESS co-located with renewable power projects at the same substation and charged from such sources are <a href="https://www.mercomindia.com/power-ministry-announces-100-ists-charges-waiver-for-psps-co-located-bess/" target="_blank" rel="noopener">eligible</a> for a 12-year full waiver.</p>
<p>Other BESS will receive graded waivers based on the commissioning date, with eligibility phasing out after June 30, 2028.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-2-2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81296 " src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-2-2.png" alt="ISTS 2" width="1046" height="501" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-2-2.png 842w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-2-2-300x144.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-2-2-768x368.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-2-2-650x311.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-2-2-624x299.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-2-2-600x287.png 600w" sizes="(max-width: 1046px) 100vw, 1046px" /></a></p>
<p>The provisions introduce critical flexibility to allow battery systems that are otherwise required to charge from renewables to use grid power in contingency situations. However, the drawal from the grid must not exceed 10% of the battery’s annual energy requirement.</p>
<p>Additionally, BESS paired with co-located renewables, without requiring additional connectivity capacity at the ISTS substation, will still qualify under this beneficial category.</p>
<p><strong>Hydropower </strong></p>
<p>Hydropower projects that sign power purchase agreements (PPAs) or are awarded for construction between December 2022 and June 2028 will receive waivers ranging from 100% to 25% over 18 years. The waiver percentage depends on the PPA signing date or the construction award, whichever is later. Projects beyond June 30, 2028, are not eligible.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-3-2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81297 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-3-2.png" alt="ISTS 3" width="511" height="382" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-3-2.png 511w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-3-2-300x224.png 300w" sizes="(max-width: 511px) 100vw, 511px" /></a></p>
<p><strong>Offshore Wind</strong></p>
<p>The waiver for offshore wind projects will apply to systems commissioned up to December 31, 2035, with a declining benefit structure from 100% to 25% depending on the commissioning year. No waivers will apply after December 31, 2035.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-3-3.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81298 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-3-3.png" alt="ISTS 3" width="511" height="382" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-3-3.png 511w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-3-3-300x224.png 300w" sizes="(max-width: 511px) 100vw, 511px" /></a></p>
<p><strong>Green Hydrogen and Green Ammonia</strong></p>
<p>Green hydrogen and ammonia projects will also benefit as consumers of the ISTS capacity. Projects commissioned up to December 31, 2033, will receive waivers ranging from 100% to 25% for 25 years. The waiver applies to drawal schedules from renewable or hydro generation, or from ESS that meet at least 51% of their annual electricity requirement from renewables. The most favorable source determines the waiver percentage. CERC has provided detailed illustrations to clarify overlapping eligibility scenarios.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-5-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81300 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-5-1.png" alt="ISTS 5" width="552" height="343" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-5-1.png 552w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-5-1-300x186.png 300w" sizes="(max-width: 552px) 100vw, 552px" /></a></p>
<p><strong>Force Majeure-Based Extensions </strong></p>
<p>The amendments include a provision to protect projects facing delays due to uncontrollable factors. Projects originally scheduled to be commissioned by June 2025, including renewable and storage projects eligible for waivers, can still retain their waiver if granted an extension due to force majeure or transmission system delays. These extensions can be granted twice, each for up to six months, and must be approved by relevant authorities depending on the case.</p>
<p><strong>Storage Projects Compliance </strong></p>
<p>To streamline billing, the National Load Despatch Centre (NLDC) will initially accept self-declared compliance with a 51% renewable requirement for storage systems. This will be verified at the end of each financial year. Non-compliance will trigger revised billing without any waiver.</p>
<p><strong>Clarification on Terminal Bay Charges </strong></p>
<p>The amendments also provide clarifications on the responsibility for paying transmission charges when generation projects delay commissioning while the associated terminal bays are already energized. The guarantee of connectivity must bear the cost of such terminal bays, even if generation has not yet started.</p>
<p>The terminology has been refined to consistently refer to both the associated transmission system and terminal bays. Under a new clause, the Transmission System Availability Factor will be calculated per CERC’s Tariff Regulations, regardless of any contrary provisions in transmission service agreements under competitive bidding.</p>
<p>Finally, when yearly transmission charges for certain elements are not approved, the Central Transmission Utility (CTU) will calculate indicative charges based on capital costs to ensure uninterrupted billing.</p>
<p><strong>Revised Charge Apportionment </strong></p>
<p>The amendments also modify the way transmission charges are apportioned within state boundaries. They specify that drawee designated interstate customers, apart from state distribution licensees, will bear a share of the aggregate adjusted charges for unscheduled bay components for the state. The share will be proportional to their general network access.</p>
<p><strong>Rules for Dual-Connected Generating Stations</strong></p>
<p>Generating stations with dual connectivity to both interstate and intrastate transmission systems will now have their transmission deviation computed based on their net metered ex-bus injection. This will be done in time blocks where injection exceeds the combined GNA to the ISTS and the access with the State Transmission Utility (STU). STUs must provide access data to the NLDC and the CTU to enable this calculation.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>


No ISTS Charges Waiver for Solar, Wind Projects Commissioned after June 2028


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/06/amazon_polly_81189.mp3?version=1750856483">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>Adani Electricity Mumbai (<a href="https://www.adanielectricity.com/" target="_blank" rel="noopener">AEML</a>) has concluded the open-market repurchase of its senior secured notes worth $49.5 million (~₹4.25 billion).</p>
<p>The transaction is part of a senior secured note issue of $1 billion (~₹86.03 billion) at a coupon rate of 3.9%, secured by AEML in February 2020.</p>
<p>The distribution company (DISCOM) also confirmed its purchase notes were canceled after acquiring the senior secured notes.</p>
<p>The repurchase was funded through AEML&#8217;s internal cash flows.</p>
<p>Following these transactions, the outstanding principal amount of senior secured notes is $830.5 million (~₹71.45 billion).</p>
<p>It had also completed open-market repurchases of $120 million (~₹10.32 billion) of $1 billion (~₹86.03 billion) in notes in November 2023.</p>
<p>Subject to market conditions, AEML said it can undertake further liability management exercises from time to time.</p>
<p>Adani Electricity Mumbai <a href="https://www.mercomindia.com/adani-electricity-mumbai-top-2024-discom-rankings" target="_blank" rel="noopener">secured</a> the highest position with an integrated score of 99.8 at the Ministry of Power’s thirteenth annual integrated ratings and rankings report for the financial year (FY) 2024. AEML sold a net energy volume of 9,813 million units during the year.</p>
<p>Its aggregate technical and commercial losses reduced from 6.48% in FY 2023 to 6.12% in FY 2024. The company’s billing efficiency increased from 93.73% to 94.13%, and the average cost of supply–average realizable revenue gap improved by ₹0.91 (~$0.010)/kWh.</p>
<p>AEML plans to add an additional 1,000 MW of renewable energy through long- and short-term power purchase agreements (PPA). It also aims to add a 75 MWh battery energy storage system capacity.</p>
<p>In FY 2024, the company opted for a green tariff for its transmission and distribution equivalent of 42% of auxiliary consumption. It sourced an estimated 4,000 MW of green power for the end consumer during this period.</p>
<p>In the same period, AEML also entered a 25-year PPA to procure 700 MW of wind-solar hybrid power annually at a tariff of ₹3.24 (~$0.037)/kWh.</p>
<p>In May 2025, the company <a href="https://www.mercomindia.com/adani-electricity-mumbai-500-mw-energy-storage" target="_blank" rel="noopener">invited</a> bids to procure 500 MW/4,000 MWh of energy storage capacity along with an additional 250 MW/2,000 MWh under the greenshoe option from pumped hydro storage projects or battery energy storage systems.</p>


Adani Electricity Mumbai Buys Back $49.5 Million Debt Bonds


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/06/amazon_polly_81126.mp3?version=1750826629">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>Despite global renewable energy capacity adding a record 741 GW in 2024, the world is projected to fall short of the goal to triple renewable capacity by 2030 by 800 GW, according to the Renewables 2025 Global Status Report published by <a href="https://www.ren21.net/" target="_blank" rel="noopener">REN21</a>.</p>
<p>China led with 445 GW or 60.2% of the total capacity additions. Europe followed with 92 GW, Oceania and Asian countries, excluding China and India, added 73 GW, and North America contributed 56 GW. India installed 36 GW, Brazil 18 GW, the rest of Latin America and the Caribbean 8 GW, and Africa and the Middle East together added 13 GW.</p>
<p><strong>Power Mix</strong></p>
<p>Global electricity generation reached an all-time high of 30.9 thousand TWh in 2024, with renewables contributing 31.9% of the total. Fossil fuels remained the dominant source, accounting for 18.2 thousand TWh or 59.1%, although their share continued to decline. Nuclear power accounted for the remaining 9%.</p>
<p>Among renewable sources, hydropower was the largest at 14.3%, while solar and wind saw the fastest growth. Solar generation increased 16-fold between 2015 and 2024, reaching 2,132 TWh, or 6.9% of the global total. Wind power increased nearly fourfold to 2,494 TWh, representing 8.1% of total energy consumption. Bioenergy and geothermal sources together added 800 TWh or 2.6%.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81129 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-1.png" alt="REN21 1" width="752" height="533" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-1.png 752w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-1-300x213.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-1-650x461.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-1-624x442.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-1-600x425.png 600w" sizes="(max-width: 752px) 100vw, 752px" /></a></p>
<p style="text-align: center;">Source: REN21</p>
<p>Total installed solar capacity reached 2.25 TW in 2024, more than double the 2022 figure. An estimated 602 GW of new solar capacity was added, a 32% <a href="https://www.mercomindia.com/renewables-struggle-demand-2023-report/" target="_blank" rel="noopener">increase</a> from 2023. China accounted for about 60% of this growth, followed by the U.S. with 8% and India with 5%. Pakistan emerged as a notable market, accounting for 3% of new capacity, surpassing the combined solar additions by Italy, France, and Australia, as battery-backed solar systems became a preferred option for achieving energy independence.</p>
<p>Wind power also reached a record high in 2024, with 116.8 GW of new capacity connected to grids. Onshore wind rose 3.1% to 109 GW, while offshore wind fell by 27.5%. China was again the primary driver, contributing 68.3% of total additions. Excluding China, global wind capacity additions declined by 9.6%.</p>
<p>By the end of the year, total installed wind capacity had reached 1,135.4 GW, an 11.2% increase. The wind sector faced ongoing challenges, including policy uncertainty, rising costs, permitting delays, grid constraints, and growing local opposition in some countries. Despite these challenges, deployment picked up in select emerging markets, supported by improved policy frameworks.</p>
<p>Despite the continuous expansion of renewable energy deployment, the world remains significantly behind the 2030 target of 11,000 GW of installed capacity. Reaching this goal will require more than doubling the current capacity within the next six years, demanding an unprecedented developmental pace.</p>
<p><strong>Energy Storage</strong></p>
<p>Battery energy storage systems were the fastest-growing storage technology in 2024, with 69 GW of new capacity added globally. This increased the total installed battery storage capacity to an estimated 150 GW, with grid-connected systems making up 78% of the year’s additions.</p>
<p>China led the deployment, accounting for 67% of new installations, driven by policies mandating battery storage alongside new solar and wind projects. The U.S. and Canada followed, with the U.S. alone adding 10.4 GW to reach a total of 26 GW. Other regions showing strong growth included Europe, Latin America, and the broader Asia Pacific.</p>
<p>Both the size and discharge duration of battery systems increased in 2024. Seventeen installations of more than 1 GW were deployed, up from just four in 2023. Around 140 such large-scale projects are planned for 2025 and 2026. In Europe, the average storage duration increased from one hour and forty minutes in 2023 to two hours in 2024, while in the U.S. and Canada, it reached three hours.</p>
<p>Pumped hydro storage remained the dominant energy storage technology, with total global capacity reaching 189 GW. Additions in 2024 totaled 8.4 GW, a 4.5% increase from the previous year.</p>
<p>The global energy storage capacity additions are expected to <a href="https://www.mercomindia.com/global-energy-storage-market-remains-resilient-amid-us-and-china-policy-changes/" target="_blank" rel="noopener">grow</a> by 35% in 2025 to 94 GW or 247 GWh.</p>
<p><strong>Investments</strong></p>
<p>Global investment in renewable energy reached $728 billion, representing an 8% increase from the previous year. This increase was significantly lower than the 19% growth in 2023 and 23 23% in 2022. Solar power and electric vehicles received the bulk of the funding, highlighting an imbalance in investment across technologies. At just 48% of the annual level required through 2030, renewable energy investment remains insufficient to meet the target of net-zero greenhouse gas emissions by 2050.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81128 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-2.png" alt="REN21 2" width="752" height="601" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-2.png 752w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-2-300x240.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-2-650x519.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-2-624x499.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-2-600x480.png 600w" sizes="(max-width: 752px) 100vw, 752px" /></a></p>
<p style="text-align: center;">Source: REN21</p>
<p>Annual investment in solar power surged 22% in 2024 to reach $521 billion, outpacing the 20% growth in 2023 and underscoring the continued dominance of solar in the energy transition.</p>
<p>Investment trends show significant regional disparities. Between 2015 and 2024, China consistently led global renewable investment, peaking at over $290 billion in 2024. Investments in the European Union and the UK dropped from $142 billion in 2023 to $114 billion in 2024, while U.S. investment fell from $110 billion to approximately $97 billion. In contrast, investment in Asia (excluding China), Africa, and the Middle East continued to accelerate.</p>
<p>Wind energy investment decreased by roughly 15% in 2024, falling to its lowest level since 2021. Persistent permitting issues, supply chain problems, and weak policy signals drove this decline. Several U.S. and European offshore wind projects defaulted in 2023 and 2024 due to unhedged costs and inflexible revenue-support programs. Rising prices for materials, labor, and logistics added pressure, as did the broader economic fallout from the war in Ukraine, which raised capital expenditures for developers worldwide. These factors, combined with narrow margins and unfavorable project economics, made conditions especially difficult for wind developers.</p>
<p>Investment in power grids and energy storage reached new highs in 2024. Grid spending increased 15% to $390 billion, with growth in all regions, particularly in Europe. Energy storage investment increased by 36% to $54 billion, driven mainly by projects in Asia and the U.S. However, grid investment must rise further to accommodate the scale of renewable generation needed to meet global climate goals.</p>
<p>High capital costs continue to be a significant barrier to the deployment of renewable energy in emerging and developing economies. For utility-scale solar and wind projects, the weighted average cost of capital is often more than double that in advanced economies due to political and economic instability, currency risks, and underdeveloped financial markets. These hurdles raise financing costs and make renewable projects less viable. Reducing the capital costs in these regions could substantially lower global financing needs.</p>
<p>A one percentage point reduction could cut the cost of reaching net zero by $150 billion annually. In countries such as Kenya and Senegal, high interest rates and currency risks make renewable investments far more expensive compared to developed markets. Without targeted policy and financial support, these regions risk falling behind in the energy transition.</p>
<p><strong>Outlook</strong></p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-3.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81127 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-3.png" alt="REN21 3" width="1137" height="792" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-3.png 1137w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-3-300x209.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-3-768x535.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-3-650x453.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-3-624x435.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-3-600x418.png 600w" sizes="(max-width: 1137px) 100vw, 1137px" /></a></p>
<p style="text-align: center;">Source: REN21</p>
<p>As governments prioritize energy security and resilience, renewable energy sources are becoming increasingly central to national strategies. New national and international commitments highlight the growing recognition of renewable energy as vital for climate mitigation and adaptation.</p>
<p>Distributed and off-grid solar systems are also expanding rapidly in emerging economies, driven by public demand and demonstrating the effectiveness of decentralized energy solutions. Power purchase agreements, particularly from tech firms and industrial players, reflect growing confidence in renewables as a reliable and cost-effective source of energy.</p>
<p>The integration of renewable energy across housing, mobility, and industry is also opening new avenues for its adoption as the energy transition aligns with broader economic strategies. Advances in digitalization and artificial intelligence are improving grid operations. They are also enhancing system planning and enabling more adaptive energy systems.</p>


World Lags 2030 Renewable Energy Goals Despite Record 741 GW Additions: Report


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/06/amazon_polly_81078.mp3?version=1750745895">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>REC Power Development and Consultancy (<a href="https://www.recpdcl.in/" target="_blank" rel="noopener">RECPDCL</a>) has invited bids for the implementation of a 765 kV interstate transmission system between Parli New, Maharashtra, and Bidar, Karnataka, on a build, own, operate, and transfer basis.</p>
<p>The tender is part of a broader transmission expansion plan aimed at enhancing grid connectivity between the country’s southern and western regions, as well as increasing renewable energy evacuation capacity.</p>
<p>The Parli New–Bidar double circuit transmission line will include the construction of two 765 kV line bays at each end and the Parli New and Bidar pooling stations (PS). The line will also include the installation of 765 kV, 240 MVAr static line reactors at Bidar PS, comprising six 80 MVAr switchable units.</p>
<p>The Bidar 765/400/220 kV PS is being developed to support 2.5 GW of renewable energy capacity, with connectivity of 2.5 GW already granted at the 220 kV level.</p>
<p>Bids must be submitted by August 22, 2025. Bids will be opened on the same day.</p>
<p>Bidders must furnish a bid security of ₹96 million (~$1.16 million) and a tender document fee of ₹500,000 (~$6,025).</p>
<p>The scope of work encompasses the survey, design, engineering, financing, land acquisition, right-of-way clearance, permits, construction, testing, and commissioning of the transmission system. It also entails providing operations and maintenance services for 35 years.</p>
<p>Successful bidders must transfer the transmission assets to the Central Transmission Utility at the end of the 35-year term at no costs.</p>
<p>Bidders must have worked on infrastructure projects worth at least ₹5 billion (~$60.24 million), with each project valued at a minimum of ₹1 billion (~$12.05 million). Alternatively, they must have worked on construction contracts where they received payments of at least ₹5 billion (~$60.24 million) over the last five years.</p>
<p>Bidders must have a minimum net worth of ₹2.5 billion (~$30.12 million).</p>
<p>Recently, RECPDCL <a href="https://www.mercomindia.com/recpdcl-invites-bids-to-evacuate-2-gw-of-power-from-solar-park-in-tumkur" target="_blank" rel="noopener">issued</a> a request for proposal for developing a 2,000 MW intrastate transmission system to evacuate power from a proposed solar park at Ryapte village in Tumkur district, Karnataka.</p>
<p>In May this year, RECPDCL <a href="https://www.mercomindia.com/recpdcl-invites-bids-to-set-up-transmission-system-for-renewable-energy-integration" target="_blank" rel="noopener">invited</a> bids to set up an interstate transmission system (ISTS) to integrate 3 GW of renewable energy at Ananthapuram-II Renewable Energy Zone (Phase-II) in Andhra Pradesh.</p>


RECPDCL Invites Bids to Enhance Western-Southern Grid Power Connectivity


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/06/amazon_polly_81056.mp3?version=1750685221">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>Electric vehicle (EV) charging software platform <a href="https://kazam.energy/" target="_blank" rel="noopener">Kazam</a> has raised $6.2 million in a Series B funding round from the International Finance Corporation (<a href="https://www.ifc.org/en/home" target="_blank" rel="noopener">IFC</a>) and existing investors <a href="https://www.vertexventures.sg/" target="_blank" rel="noopener">Vertex Ventures SEA and India</a> and <a href="https://avaanacapital.com/" target="_blank" rel="noopener">Avaana Capital Advisors.</a></p>
<p>The newly raised funds will be used to support the company’s expansion across markets with its energy transition tools.</p>
<p>The latest round of funding has increased Kazam’s total capital raised to $19.2 million. This funding includes $13 million in equity from past rounds led by Avaana Capital Advisors, Vertex Ventures SEA and India, and Chakra Ventures.</p>
<p>Kazam offers device-agnostic solutions to charging and battery-swapping operators, fleet operators, and electricity grid companies.</p>
<p>The company said it has onboarded over 68,000 chargers, enabled more than 5 million charging sessions, and facilitated 45 GWh of energy. Kazam claims its platform powered 25 million electric kilometers across 80 cities and 10 countries last month.</p>
<p>EV adoption has been seeing an uptick in the country, with sales <a href="https://www.mercomindia.com/electric-vehicle-sales-q1-2025" target="_blank" rel="noopener">reaching</a> 514,198 units in the first quarter (Q1) of 2025, an over 3% year-over-year increase from 499,930 units. India now has over 5.91 million registered EVs.</p>
<p>These vehicles account for 8% of overall automobile sales, which totaled 6,371,476 units in Q1 2025, according to data released by the Ministry of Road Transport and Highways through its Vahan Dashboard.</p>
<p>In March this year, the Ministry of Heavy Industries Importing battery modules, PMP components, and other EV components in complete knockdown form from a single supplier has also been prohibited.</p>
<p>The PM E-DRIVE Program, with a total outlay of ₹109 billion (~$1.29 billion), <a href="https://www.mercomindia.com/cabinet-pm-edrive-program" target="_blank" rel="noopener">focuses</a> on providing demand incentives, deploying EVs, and developing charging infrastructure to support wider EV adoption.</p>


EV Charging Software Platform Kazam Raises $6.2 Million in Series B Funding


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/06/amazon_polly_81032.mp3?version=1750662968">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>The <a href="https://www.finance.senate.gov/" target="_blank" rel="noopener">United States Senate Committee on Finance</a> has released a draft legislative text for its version of the budget reconciliation bill, which includes a provision to phase out the clean electricity production tax credit (PTC) and the investment tax credit (ITC) starting in 2026.</p>
<p>These credits currently support zero-emission electricity generation by rewarding either the facility&#8217;s output or the capital invested in its construction. Under existing law, both were <a href="https://www.mercomindia.com/us-draft-budget-proposes-sweeping-changes-to-clean-energy-incentives" target="_blank" rel="noopener">set</a> to phase out starting in 2032 or once electricity-related emissions fell to 25% of 2022 levels, whichever came later. The new provisions advance this timeline, particularly for wind and solar projects.</p>
<p>For wind and solar technologies, both credits begin phasing down in 2026, with projects starting that year receiving only 60% of the full value. This drops to 20% in 2027 and is eliminated by 2028.</p>
<p>For other electricity-generating technologies, such as hydropower, nuclear, and geothermal, the credit is phased out on a different timeline. These projects receive the full credit if construction begins in 2033. In 2034, they receive 75% of the credit. The value decreases to 50% in 2035, and by 2036, no credit is available.</p>
<p>In addition, wind and solar installations leased to residential customers will no longer be eligible for production-related incentives.</p>
<p>Both credits are further restricted by new rules, excluding participation by entities with links to foreign adversaries. Facilities receiving material support from such entities will not qualify if construction begins after 2025. Companies that are themselves considered prohibited foreign entities also lose access to the credits starting with the next tax year following enactment.</p>
<p>Wind projects were eligible for the Clean Electricity Production Credit under Section 45Y of the Inflation Reduction Act. It has no set expiration under current law and allows wind developers to claim credit based on output. The Senate proposal now repeals this credit for wind projects that begin construction after December 31, 2024. For projects that begin before the end of 2024 but are placed in service later, the step-down applies. Only wind projects commencing in 2024 will qualify for the full credit.</p>
<p>Similar changes apply to solar energy. Under current law, developers of solar projects can choose between the ITC under Section 48E or the PTC under Section 45Y. Both options, introduced through the Inflation Reduction Act, had no predetermined expiration. The proposed changes repeal both credits for solar projects that begin construction after December 31, 2024. For those that begin before the deadline but are delayed in completion, the value of the credit declines. To qualify for the full benefit, construction must begin in 2024 and proceed swiftly to commissioning.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Changes-to-Specific-Energy-and-Manufacturing-Credits-as-of-June-16-2025.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81035 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Changes-to-Specific-Energy-and-Manufacturing-Credits-as-of-June-16-2025.png" alt="Changes to Specific Energy and Manufacturing Credits as of June 16, 2025" width="1228" height="1629" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Changes-to-Specific-Energy-and-Manufacturing-Credits-as-of-June-16-2025.png 1228w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Changes-to-Specific-Energy-and-Manufacturing-Credits-as-of-June-16-2025-226x300.png 226w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Changes-to-Specific-Energy-and-Manufacturing-Credits-as-of-June-16-2025-768x1019.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Changes-to-Specific-Energy-and-Manufacturing-Credits-as-of-June-16-2025-1158x1536.png 1158w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Changes-to-Specific-Energy-and-Manufacturing-Credits-as-of-June-16-2025-650x862.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Changes-to-Specific-Energy-and-Manufacturing-Credits-as-of-June-16-2025-624x828.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Changes-to-Specific-Energy-and-Manufacturing-Credits-as-of-June-16-2025-600x796.png 600w" sizes="(max-width: 1228px) 100vw, 1228px" /></a></p>
<p><strong>Standalone Energy Storage Investment Credit</strong></p>
<p>The draft bill also revokes the investment tax credit for standalone energy storage systems, which was made available under Section 48 following the Inflation Reduction Act. The repeal applies to all projects that begin construction after December 31, 2024. This means only storage systems that start before the end of 2024 remain eligible. Starting in 2025, no new standalone energy storage projects will qualify for the ITC.</p>
<p><strong>Curbs on Critical Mineral Production Credit</strong></p>
<p>The updated provision phases out the manufacturing production credit for critical minerals as well.</p>
<p>In 2031, the credit for critical minerals would be limited to 75%. It would drop to 50% in 2032, 25% in 2033, and end entirely in 2034.</p>
<p>The credit for wind components would phase out earlier, ending for items produced and sold after December 31, 2027.</p>
<p>Another change removes a rule that previously treated eligible components as sold to an unrelated party if they were integrated into another eligible component. This change will take effect for taxable years beginning after December 31, 2026.</p>
<p>The provision also limits credit eligibility for taxpayers with ties to certain foreign entities. Starting in 2026, no credit is available for components manufactured with material assistance from a prohibited foreign entity, as defined under section 7701, with modifications introduced in this bill.</p>
<p>Additionally, beginning in the first tax year after enactment, the credit is not available to taxpayers classified as specified foreign entities or foreign-influenced entities.</p>
<p><strong>Energy-efficient Home Improvement </strong></p>
<p>Taxpayers can claim a credit for residential spending on solar electric systems, solar water heating, fuel cells, small wind energy systems, geothermal heat pumps, and battery storage if the property is placed in service within 180 days after the bill is enacted.</p>
<p><strong>Clean Hydrogen Production Credit</strong></p>
<p>The bill also repeals the clean hydrogen production credit provided under Section 45V for facilities that begin construction after December 31, 2024. Unlike the wind and solar credits, there is no phase-down. The repeal is absolute. Under existing law, the credit is available for ten years from the start of production and varies based on the carbon intensity of the hydrogen produced. Its value ranges from 20% to 100% of $0.60 per kilogram.</p>
<p>The credit can be transferred to unrelated parties if the producer does not have sufficient tax liability. With the new proposal, only hydrogen facilities starting construction in or before 2024 will remain eligible.</p>
<p>The bill had <a href="https://www.mercomindia.com/us-clean-energy-tax-credits-at-risk/" target="_blank" rel="noopener">passed</a> the U.S. House of Representatives narrowly, 215-214, with all Democrats voting against it.</p>


US Senate Budget Bill Proposes to Slash Solar, Wind Incentives From 2026


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/06/amazon_polly_80942.mp3?version=1750308229">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>The European Investment Bank (<a href="https://www.eib.org/en/index" target="_blank" rel="noopener">EIB</a>) has pledged €1.6 billion (~$1.84 billion) to finance the construction of the Bay of Biscay electricity interconnection between France and Spain.</p>
<p>This financing will be completed as loans to the Spanish Red Eléctrica and the French RTE Réseau de transport d’électricité transmission-system operators.</p>
<p>The first loan tranche of €1.2 billion (~$1.38 billion) was signed at EIB’s headquarters in Luxembourg. This loan adds to the co-funding of €578 million (~$665.15) for the project under the Connecting Europe Facility.</p>
<p>The project is covered under the ‘Project of Common Interest’ initiative, which includes participation from the EIB, the European Commission, Red Eléctrica, and RTE. The initiative aims to strengthen cross-border electricity interconnections and the overall European energy system.</p>
<p>Inelfe, a joint venture between RTE and Red Eléctrica, is constructing the Bay of Biscay link. It is expected to become operational by 2028. The link is projected to increase the electricity exchange capacity between France and Spain to 5,000 MW, nearly doubling from the current 2,800 MW capacity.</p>
<p>The link will transmit electricity over 400 km between Cubnezais in France and Gatika in Spain. Of the total length, 300 km of the transmission link will be underwater, making it the first submarine electricity interconnection between the two countries.</p>
<p>EIB stated that the project will contribute to the Iberian Peninsula’s progress towards the European Union target of 15% installed production capacity by 2030 for its member states.</p>
<p>Apart from the Bay of Biscay link, the underground link between Baixas in France and Santa Llogaia in Spain, as well as the improvement of the Argia (France)-Hernani (Spain) link, will help enhance the Iberian Peninsula’s interconnection capacity with the rest of Europe.</p>
<p>Last year, a report by energy think tank EMBER Climate <a href="https://www.mercomindia.com/europes-grids-potential-report" target="_blank" rel="noopener">highlighted</a> that many European national grid plans underestimate the potential of wind and solar deployment, posing a significant risk to the seamless integration of renewable energy sources.</p>
<p>In 2023, Europe’s power industry <a href="https://www.mercomindia.com/europes-power-sector-calls-for-ramping-up-aging-grid-infrastructure" target="_blank" rel="noopener">called</a> for an 84% annual increase in investments in aging grid infrastructure over the next 27 years until 2050. The industry stated that the grid infrastructure was ill-suited for accommodating decentralized renewables, electric vehicles and smart grids.</p>


Grid

Get the most relevant India solar and clean energy news.

RECENT POSTS