CERC Proposes Third Amendments To Enhance Inter-State Transmission And GNA Regulations

The Central Electricity Regulatory Commission (CERC) has released a draft notification for the third amendment to the Connectivity and General Network Access to the inter-State transmission System Regulations, 2022. This notification, dated 31 July 2024, outlines several key amendments aimed at refining and updating the existing regulations to better meet the needs of the evolving electricity transmission landscape in India.

The draft notification introduces new definitions and clauses, such as the concept of a “Complex of ISTS substations” or “Cluster of ISTS substations,” which refers to groups of ISTS substations clustered based on geographical proximity and planning by the Central Transmission Utility (CTU). This is expected to enhance the coordination and planning of the transmission network.

One of the significant amendments pertains to the withdrawal of applications for Connectivity or General Network Access (GNA) and the treatment of associated Bank Guarantees (BGs). The amendments specify various scenarios under which an application can be withdrawn and detail the forfeiture and refund processes for application fees and BGs. For instance, if an application is withdrawn before the in-principle grant of Connectivity or GNA, 50% of the application fee is forfeited, and the balance along with the BG is refunded within 15 days. The notification also addresses partial withdrawals and stipulates conditions under which such withdrawals are permitted.

The draft also amends regulations to facilitate the grant of Connectivity to Renewable Energy Generating Stations (REGS) seeking to connect to the transmission network of the Bhakra Beas Management Board (BBMB). For REGS with installed capacities of 5 MW and above, applications for Connectivity can be made to the Nodal agency along with a system study conducted by BBMB’s State Load Dispatch Centre (SLDC). For smaller REGS with capacities below 5 MW, connectivity can be sought directly from BBMB SLDC, and the approval forwarded to the Nodal Agency for records.

Further amendments include provisions for phased Connectivity applications for Renewable Power Park Developers authorized for more than 500 MW. The developers can apply for Connectivity in phases, with the initial application covering at least 500 MW and subsequent applications in minimum increments of 50 MW. Additionally, the regulations now allow applicants to seek Connectivity at various points, such as terminal bays of ISTS substations, switchyards of generating stations, or entities with existing Connectivity agreements, provided they submit the required BGs.

New clauses also address land requirements for REGS applications, specifying that the quantum of land per MW will be published on the CTU website and updated periodically based on stakeholder feedback and technological advancements. Moreover, applicants can implement their projects on different land parcels than initially submitted, provided there is no change in the point of Connectivity or the start date.

The amendments also revise the procedures and timelines for the submission and forfeiture of BGs, including the introduction of a Conn-BG1 for Rs 50 lakhs and Conn-BG2 equal to the estimated cost of augmentation, terminal bay(s), and associated works. These guarantees must be furnished within one month of the in-principle grant of Connectivity, failing which the application is closed, and the fee forfeited.

The draft notification includes changes to the processing and approval timelines for Connectivity applications. The Nodal Agency is required to intimate the timeline for completion of augmentation and firm dates for Connectivity within six months of receiving the necessary BGs. If this is not achieved, the reasons for the delay must be communicated to the applicant and the Central Commission, along with a probable date for providing the timeline.

These amendments reflect CERC’s ongoing efforts to streamline the regulatory framework for inter-State electricity transmission, ensuring more efficient and transparent processes that accommodate the growing integration of renewable energy sources into the national grid. The draft notification is currently open for stakeholder feedback before finalization and implementation.