CTU issues draft rules for ownership changes in grid connected RE and storage projects

The Central Transmission Utility has issued draft guidelines to regulate changes in ownership for power generation and storage projects that have not yet reached commercial operation. POWERGRID, acting as the Central Transmission Utility, released the draft on 02 December 2025 for stakeholder consultation.

The proposed procedure applies to renewable energy generating stations other than hydro and to energy storage systems other than pumped storage projects. Any change in control before the Commercial Operation Date will require written approval from the Central Transmission Utility. The aim is to prevent speculative trading of connectivity rights under the amended connectivity regulations of the Central Electricity Regulatory Commission.

The draft lists specific grounds on which an applicant may seek approval. These include insolvency or liquidation under the Insolvency and Bankruptcy Code, government directed transfers or disinvestment, lender step in due to default, changes within a consortium or joint venture, exit of a foreign investor and corporate actions such as mergers or acquisitions.

Applicants will need to file requests at least 90 days before the planned change. Submissions must include board approvals, ownership details, project status reports and lender consents. Failure to secure approval could lead to the loss of grid connectivity and encashment of bank guarantees.

Stakeholders can submit comments until 17 December 2025. The final procedure is expected to give clearer guidance for investors and developers managing ownership transitions in the renewable energy and storage sectors.

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