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

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Representational image. Credit: Canva

The Andhra Pradesh Electricity Regulatory Commission (APERC) has issued an important clarification regarding the transfer of connectivity within the state’s intra-state transmission system. The clarification was communicated to Andhra Pradesh Transmission Corporation (APTRANSCO) in response to a series of regulatory queries raised by the utility concerning the handling of connectivity transfer requests where specific state-level guidelines were not available.

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In its response, APERC clarified that the Connectivity and General Network Access Regulations issued by the Central Electricity Regulatory Commission (CERC) in 2022 are designed specifically for the Inter-State Transmission System (ISTS) and therefore do not automatically apply to Andhra Pradesh’s intra-state transmission network. However, the Commission stated that APTRANSCO may refer to the principles and methodology contained in the CERC regulations while evaluating connectivity transfer requests, provided such actions remain consistent with APERC’s own regulations, orders, and regulatory framework.

One of the key issues addressed by the Commission was the applicability of the 50 MW minimum capacity threshold prescribed under the CERC regulations for connectivity transfers. APERC clarified that this threshold is relevant only to the national transmission system and is not mandatory for Andhra Pradesh’s intra-state network. As a result, APTRANSCO may consider and process connectivity transfer requests for projects of any capacity, as long as the connectivity was originally granted by APTRANSCO.

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The Commission also provided guidance regarding renewable energy projects developed under cluster-based models, particularly solar and wind projects. APTRANSCO had sought clarification on whether connectivity granted to an original developer could be transferred to new projects within the same cluster that share transmission infrastructure but have no corporate relationship with the original grantee.

APERC emphasized that connectivity approvals are project-specific and cannot be treated as freely transferable rights. The Commission stated that the existence of common infrastructure or a shared project cluster does not automatically justify the transfer of connectivity. Any such request must be carefully evaluated by APTRANSCO based on technical feasibility and the consent of the original connectivity holder.

At the same time, APERC introduced flexibility for operational projects. The Commission clarified that where individual projects within a cluster have already achieved Commercial Operation Date (COD) and are supplying power under Power Purchase Agreements (PPAs) or Open Access (OA) arrangements, APTRANSCO may consider transferring or allocating connectivity directly to those operational projects. This can be permitted even when the projects do not have subsidiary or shareholder links with the original developer, provided formal consent is obtained from the original connectivity grantee.

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The clarification establishes a clear framework for connectivity transfers in Andhra Pradesh, ensuring regulatory oversight while supporting the practical requirements of operational renewable energy projects and transmission infrastructure planning.


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