The Andhra Pradesh Electricity Regulatory Commission (APERC) has issued the draft second amendment to the Terms and Conditions for Tariff Determination from Renewable Energy Sources Regulation, 2025, intended to remove the condition that renewable hybrid energy projects and renewable energy with storage projects be connected at a single interconnection point. 

The draft provides that renewable hybrid projects and renewable energy with storage projects may now be connected at the same or different interconnection points, subject to applicable connectivity approvals, scheduling discipline, and settlement mechanisms. 

Background  

The original regulation was notified on September 12, 2025. 

Stakeholders later submitted representations requesting the removal of the single interconnection point requirement for hybrid projects to allow greater flexibility in project design and optimal use of renewable energy resources. 

APERC sought comments from APTRANSCO, state distribution companies (DISCOMs), and the State Load Despatch Centre (SLDC).  

APTRANSCO raised concerns regarding the optimization of grid infrastructure, the treatment of hybrid capacity for network planning, the levy of transmission and wheeling charges, metering arrangements, scheduling limits, the energy settlement methodology, and deviation settlement mechanisms.  

The Commission also noted that the Ministry of Power’s tariff-based bidding guidelines for grid-connected wind-solar hybrid projects permit components to be located at the same or different locations.  

Commission’s Analysis  

After considering APTRANSCO’s concerns, APERC noted that permitting renewable hybrid components at different sites would not lead to duplication of transmission infrastructure.  

Instead, it would allow each generation component to connect at the nearest technically feasible interconnection point, subject to spare network capacity and the state transmission utility’s approval.  

APERC noted that the approach would minimize the need for dedicated transmission lines, optimize the use of existing substations, and conserve land and national resources. 

However, the Commission clarified that energy settlement, scheduling, and deviation settlement for hybrid open access projects would continue to be governed by the Green Energy Open Access Regulation, 2024.  

The Commission also revised key definitions. ‘Renewable hybrid energy project’ and ‘renewable energy with storage project’ have now been redefined to allow connection at the same or different interconnection points. 

APERC amended clause 4(f) to clarify that at least 25% of the rated capacity must be from a single renewable source, with energy injected at one or more interconnection points and metered accordingly.  

The draft also mandates a minimum Capacity Utilization Factor (CUF) of 40% for each 1 MW of wind-solar hybrid project.  

Further, APERC amended clause 67 to determine project-specific CUF for renewable hybrid projects based on the proportion of each renewable source’s rated capacity, while maintaining a minimum CUF of 40% measured at the interconnection points.  

In August last year, APERC proposed introducing virtual net metering, allowing groups of consumers, such as housing societies and residential complexes, to export solar power to the grid through a gross meter. 

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