CERC Proposes Major Reforms To ISTS Connectivity And GNA Regulations 2026

The Central Electricity Regulatory Commission (CERC) has issued a draft notification proposing the Fourth Amendment to the Connectivity and General Network Access (GNA) Regulations for the inter-State Transmission System (ISTS). Released on May 20, 2026, the draft amendment aims to improve flexibility for renewable energy developers, energy storage projects, and power generation companies while also refining procedural and financial norms within the transmission network framework.

One of the key highlights of the amendment is the introduction of the term “LAND BG,” referring to a specific bank guarantee submitted under Regulation 5.8. The amendment also provides relief to project developers facing long delays in transmission connectivity. Under the proposed rules, if the gap between the likely start date mentioned in the in-principle grant and the final connectivity grant extends to two years or more, developers will be allowed to withdraw their entire connectivity quantum. In such cases, all submitted bank guarantees, including Conn-BGs and Land BGs, will be refunded, provided the withdrawal request is submitted within 30 days from the final intimation date.

The draft amendment also places additional technical requirements on Energy Storage Systems (ESS). It states that ESS projects must maintain a minimum discharge capacity in megawatt-hours equivalent to at least twice their approved connectivity quantum. For ESS applicants, excluding Pumped Storage Plants, the bank guarantee requirement has been fixed at Rs 5 lakh per megawatt. At the same time, the proposal offers flexibility by allowing ESS developers to install Renewable Energy Generating Stations (REGS) solely for charging purposes. Such charging-only REGS projects will not be required to submit land ownership documents or proof of financial closure.

In another important change, the regulations introduce provisions for non-solar hour access. Generating stations and ESS projects can now seek connectivity for specific non-solar hours instead of requiring full-day access, thereby improving operational flexibility. The amendment further clarifies that any additional capacity installed only to meet technical requirements at the Point of Injection will not be counted as part of the total capacity considered for ISTS connectivity approval.

The draft also brings procedural clarity for multi-location renewable energy projects operating under a single Power Purchase Agreement (PPA). Developers will be allowed to obtain connectivity across multiple locations up to the lower of the awarded PPA capacity or the installed capacity at a specific site. The amendment also defines priority rules for allocating PPA-linked connectivity before considering land-based criteria. Additionally, developers will now be permitted to change their power source a second time by paying a processing fee of Rs 50,000 per megawatt.

Further, the amendment proposes that financial closure documents must be submitted within 15 days of the effective GNA date. For older operational projects where one year has passed since the Commercial Operation Date, the Nodal Agency will be required to return subsisting Conn-BG2 and Conn-BG3 guarantees within one month, subject to clearance of all transmission-related dues. CERC has also directed the Nodal Agency to publish a revised Detailed Procedure within 60 days after completing stakeholder consultations.