APERC Clarifies Intra-State Grid Connectivity Transfer Rules For Renewable Energy Projects In Andhra Pradesh

The Andhra Pradesh Electricity Regulatory Commission (APERC) has issued important clarifications regarding the transfer of grid connectivity within the state’s Intra-State Transmission System (InSTS). The directions were issued in response to queries raised by Andhra Pradesh Transmission Corporation (APTRANSCO) and are expected to bring greater clarity to renewable energy developers and other power sector stakeholders.

According to the Commission, grid connectivity granted to a project is project-specific and cannot be treated as a freely tradable or transferable asset. APERC stated that merely being part of the same renewable energy cluster or sharing common evacuation infrastructure does not automatically give another developer the right to use the connectivity already granted to an existing project. Any request for the transfer of connectivity must be examined individually by APTRANSCO. The evaluation should consider technical feasibility as well as the formal consent of the original holder of the connectivity approval.

The Commission also clarified the distinction between central and state regulatory jurisdictions. APERC noted that regulations framed by the Central Electricity Regulatory Commission (CERC) for the Inter-State Transmission System (ISTS) do not automatically apply to intra-state transmission networks. However, in situations where state regulations do not provide specific guidance, APTRANSCO may refer to the principles contained in central regulations, provided they are consistent with the state’s regulatory framework.

A significant clarification relates to project capacity requirements. Under the CERC framework governing interstate transmission systems, a minimum project capacity of 50 MW is generally required for connectivity transfers. APERC has clarified that this requirement does not apply to intra-state transmission systems in Andhra Pradesh. As a result, APTRANSCO has been directed to examine all genuine transfer requests regardless of project size. This decision is expected to benefit smaller renewable energy developers seeking connectivity transfers.

The Commission also adopted a flexible approach for operational projects that have already achieved commercial operation and are supplying power under valid Power Purchase Agreements (PPAs). In such cases, APTRANSCO may consider transferring connectivity to a different entity even if the new entity is not a subsidiary or shareholder of the original developer. However, such transfers can only be considered when the original connectivity holder provides consent.

Through these clarifications, APERC aims to ensure that grid connectivity is not misused or traded without authorization while still allowing legitimate project restructuring and ownership changes. The framework is expected to support the orderly development of renewable energy projects while promoting efficient utilization of the state’s transmission infrastructure.