APERC clarifies rules for transfer of grid connectivity in Andhra Pradesh
The Andhra Pradesh Electricity Regulatory Commission (APERC) has issued clarifications on the transfer of connectivity to the state transmission system, guiding how Andhra Pradesh Transmission Corporation Limited (APTRANSCO) should process such requests, particularly for renewable energy projects.
The clarifications were issued following queries from APTRANSCO regarding the transfer of connectivity rights between projects and the applicability of central regulations to the state’s transmission network.
Applicability of central regulations
APERC clarified that regulations issued by the Central Electricity Regulatory Commission (CERC) for inter-state transmission systems do not automatically apply to intra-state transmission systems.
However, in the absence of specific provisions under state regulations, APTRANSCO may be guided by the principles underlying the central regulations, provided they do not conflict with the state regulatory framework.
No minimum capacity threshold
The Commission addressed the issue of minimum capacity requirements for connectivity transfers. It noted that the 50 MW threshold prescribed under the CERC framework applies only to inter-state transmission systems.
For intra-state transmission systems, APTRANSCO has been directed to examine transfer requests in all cases where connectivity has been granted, irrespective of project capacity.
Connectivity is project-specific
APERC stated that connectivity granted to a project does not constitute a freely transferable right.
The Commission clarified that the existence of a common renewable energy cluster or the use of the same evacuation infrastructure does not automatically entitle another project to the connectivity rights already granted to a different developer.
Any proposal involving transfer or allocation of connectivity must be assessed by APTRANSCO on a case-by-case basis, taking into account technical feasibility and the consent of the original connectivity holder.
Operational projects may be considered
The Commission adopted a different approach for projects that have already achieved commercial operation and are supplying power under power purchase agreements.
In such cases, APTRANSCO may examine proposals for transfer or allocation of connectivity in favour of operational projects, even if those projects are not subsidiaries or shareholders of the original developer. The Commission stated that such proposals may be considered subject to the consent of the original connectivity grantee.
Guidance for future requests
The order provides a framework for handling connectivity transfer requests in Andhra Pradesh while maintaining regulatory oversight.
APERC has made it clear that connectivity rights cannot be freely traded or transferred. At the same time, it has allowed APTRANSCO to evaluate genuine requests based on technical considerations and project-specific circumstances.
The clarifications are expected to provide greater certainty for renewable energy developers seeking to restructure projects or utilise existing evacuation infrastructure, while ensuring that connectivity allocations remain subject to regulatory scrutiny.
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