The power ministry has issued a significant clarification allowing renewable energy projects to utilize curtailed temporary general network access (T-GNA) power for charging additional co-located battery energy storage systems (BESS) and selling the stored electricity independently. According to reports from Economic Times, the ministry issued this clarification in a letter dated August 27, 2026, providing relief to developers who had been seeking such permissions for merchant BESS arrangements. As per Economic Times, the ministry stated that "To facilitate optimum utilisation of renewable energy (RE) generation, it is hereby clarified that RE projects, awarded under the applicable bidding guidelines, may utilise the renewable energy curtailed under T-GNA for charging an additional co-located BESS, not covered under the existing PPA/PSA." The directive was signed by Director Sunil Kumar Sharma and circulated to state energy departments, electricity regulatory commissions, public sector undertakings and industry bodies including FICCI and ASSOCHAM.
The National Solar Energy Federation of India (NSEFI) had made representations in June highlighting that around 90 per cent of the power scheduled under T-GNA in the northern region was being curtailed. As reported by Economic Times, the association argued that merchant BESS would constitute a new element not covered under the contracted project configuration under the power purchase agreement (PPA). Member developers had approached renewable energy development agencies including the Solar Energy Corporation of India (SECI) and NTPC seeking project-specific no-objection certificates (NOCs) to allow them to use curtailed electricity for charging merchant BESS and selling stored energy at their discretion. According to Economic Times, the move by the power ministry brings relief to renewable energy developers, providing a route for developers to monetise renewable power that would otherwise be curtailed under T-GNA by storing it in a separately deployed, co-located battery energy storage systems and selling the stored electricity independently. The policy is expected to provide renewable energy developers with a clearer commercial pathway for using surplus generation during periods of grid curtailment, potentially encouraging greater deployment of co-located storage capacity.
Under the new clarification, renewable energy projects awarded under applicable bidding guidelines can utilize renewable energy curtailed under T-GNA for charging additional co-located BESS not covered under existing power purchase agreements or power sale agreements. According to the ministry's statement reported by Economic Times, a no-objection certificate from the procurer will not be required under the existing power sale agreement (PSA). The ministry has also removed an important procedural requirement, as developers will not need to obtain a No-Objection Certificate (NOC) from intermediary procurers or end procurers before storing and selling the curtailed electricity. The stored electricity can be sold to any entity through power exchanges or other arrangements, ensuring optimum utilization of renewable energy generation. As per Economic Times, the clarification follows representations made by developers seeking an enabling clarification on the matter, which was recommended by the renewable energy ministry.
The power ministry's decision will provide significant relief to renewable energy developers by allowing them to monetize electricity that would otherwise be curtailed under T-GNA. As reported by Economic Times, T-GNA allows power generators to temporarily access the interstate transmission system, but transmission constraints can result in generation being curtailed, meaning the electricity produced cannot be evacuated. The additional BESS must not be covered under the project's existing power purchase agreement or power sale agreement, ensuring this remains a merchant arrangement for independent electricity sales. This initiative not only enhances the effective use of renewable energy generation but also opens doors for monetizing energy that would otherwise go to waste. The policy could also support the development of additional market-based storage models, enabling renewable developers to generate additional revenue while making better use of available clean electricity. By allowing curtailed renewable power to be captured and sold separately from the project's contracted supply arrangements, the directive seeks to improve asset utilization and reduce avoidable renewable energy losses.
