CERC notifies third amendment to ISTS connectivity and GNA rules

The Central Electricity Regulatory Commission (CERC) issued the Connectivity and General Network Access (GNA) to the inter-State Transmission System (ISTS) (Third Amendment) Regulations, 2025 on 31 August 2025. The amendments revise multiple provisions related to renewable energy generating stations (REGS), hybrid projects, and energy storage systems (ESS).

New definitions and classifications
The amendment introduces several new terms. “Cluster of ISTS substations” refers to groups of substations declared by the Central Transmission Utility (CTU) based on location, feasibility, and planning. “Connectivity grantee” means an entity with a final connectivity grant and signed connection agreement. “Host RLDC” defines the load despatch centre responsible for an entity based on geography.

For scheduling, “solar hours” and “non-solar hours” have been defined. Developers can now obtain “solar hour access” or “non-solar hour access,” depending on resource type, with clear scheduling and drawal rights.

Application withdrawal and bank guarantees
The framework for withdrawing connectivity and GNA applications has been revised.

• If withdrawn before in-principle approval, 50% of the application fee is forfeited and the balance along with bank guarantees is returned.

• After in-principle approval but before final approval, 100% of the fee and 5% of the bank guarantee are forfeited.

• After final approval but before signing the agreement, 100% of the fee and 15% of the guarantee are forfeited.
  Partial withdrawals are allowed only in limited cases. Applicants may also choose to pay online in place of bank guarantee encashment.

Connectivity thresholds and access rights
Minimum capacity thresholds have been reaffirmed. Entities must apply for connectivity for at least 50 MW, with exceptions for smaller renewable and storage projects connected through the Bhakra Beas Management Board (BBMB) network.

Solar-based projects and hybrid projects with solar components will be considered for “solar hour access.” Wind and storage projects can apply for “non-solar hour access.” Entities will have full-day access only when residual non-solar capacity is below 50 MW.

Additional capacity for existing projects
Connectivity grantees can add new generation or storage capacity under their existing connectivity quantum. This requires approval but does not allow augmentation of the ISTS. Technical compliance and fresh bank guarantees are necessary.

Land and project documentation
Land requirements per MW and estimated project costs will be updated on the CTU website. Developers can change land parcels once, subject to maintaining minimum land coverage requirements.

Applicants relying on Letters of Award (LoA) or Power Purchase Agreements (PPAs) must now provide documents within defined timelines. Multi-location REGS projects may use a single LoA or PPA for connectivity at one location, but additional capacity requires separate documentation.

Change of source flexibility
Connectivity grantees may change their renewable energy source (for example, shifting from solar to wind or hybrid) within 18 months of approval, provided land and access conditions are met. Only one change of source is permitted.

Transfer and reallocation
CERC has introduced rules for reallocating terminal bay capacity if projects withdraw or fail to use their allocation. Reallocation must occur within the same cluster of substations, with priority given to older applications.

Connectivity granted to parent companies may be used by subsidiaries and vice versa. It can also be shared across group companies under specified conditions.

Compliance and monitoring
Regional Load Despatch Centres (RLDCs) will monitor utilisation of connectivity and GNA. The National Load Despatch Centre (NLDC) will submit quarterly utilisation reports to CERC. The nodal agency will also track compliance with land and financial closure requirements.

Bank guarantees and agreements
Revised norms define the value and treatment of connectivity bank guarantees (Conn-BG1, Conn-BG2, Conn-BG3). Guarantees must be issued by scheduled commercial banks in favour of the CTU. The connectivity process is now split into Cat-1 and Cat-2 agreements, and projects must provide technical data at least one year before connection.

Commercial operation deadlines
The scheduled date of commercial operation (SCOD) for additional capacity cannot be later than 24 months from in-principle approval. Renewable Power Park Developers must declare SCODs within three months of receiving firm connectivity dates.

Access the full CERC (Connectivity and GNA to ISTS) (Third Amendment) Regulations, 2025, here.

The featured photograph is for representation only.