CERC Restores 100 MW Solar And 50 MW BESS Project After Condoning Two-Day Delay
The Central Electricity Regulatory Commission (CERC) has allowed Pace Digitek Limited to continue with its 100 MW solar power project along with a 50 MW Battery Energy Storage System (BESS) after condoning a two-day delay in the submission of Connectivity Bank Guarantees (Conn-BGs). In its order dated July 15, 2026, the Commission set aside the decision of the Central Transmission Utility of India Limited (CTUIL) to cancel the company’s connectivity application, providing major relief to the renewable energy developer.
The case relates to Pace Digitek’s proposed project at the NP Kunta Pooling Station in Andhra Pradesh. The company had received an in-principle grant of connectivity from CTUIL on March 27, 2026. Under the General Network Access (GNA) Regulations, the developer was required to submit two Connectivity Bank Guarantees worth a total of ₹2.5 crore within 30 days. This made April 27, 2026, the final deadline for submission.
According to the company, it had started the process of arranging the bank guarantees well before the due date. However, just three days before the deadline, CTUIL pointed out that the guarantees prepared by Canara Bank did not meet the required validity conditions. Instead of the prescribed validity of three years with an additional one-year claim period, the guarantees were issued with a standard validity of only two and a half years.
To correct the error, Pace Digitek had to obtain fresh internal approvals from the bank’s large corporate branch. This additional process caused a delay of two working days. The corrected bank guarantees were submitted through email on April 29, 2026, along with a request for a short extension.
CTUIL, however, rejected the delayed submission, stating that the GNA Regulations did not permit any extension of time for submitting the bank guarantees. The utility subsequently issued a letter on May 19, 2026, closing the company’s connectivity application and forfeiting the application fees.
Pace Digitek challenged the decision before the Delhi High Court and also approached the CERC for relief. The company argued that cancellation of the connectivity would seriously affect its planned investment of ₹557.62 crore and delay the execution of its Power Purchase Agreement with the Solar Energy Corporation of India (SECI), which was expected to be implemented in September 2026. The developer also referred to an earlier CERC decision in 2025, where a four-day delay by Tata Power in a similar matter had been condoned.
During the proceedings, CTUIL maintained that it had acted strictly in accordance with the GNA Regulations and the applicable procedural requirements. At the same time, the utility informed the Commission that it would comply with any final direction issued by the regulator.
After examining the facts, the CERC observed that the delay was unintentional and resulted from genuine procedural difficulties rather than negligence. The Commission noted that cancelling the project over a two-day delay would cause significant financial loss and could negatively affect the timely development of renewable energy projects.
Using its powers under Regulations 41 and 42, which allow the Commission to relax regulations and remove practical difficulties in deserving cases, CERC condoned the delay. The Commission cancelled CTUIL’s closure letter and directed the utility to accept and process the Connectivity Bank Guarantees, allowing Pace Digitek to move forward with its solar and battery storage project.