CERC Issues Draft Connectivity and General Network Access Regulations

New rules for application withdrawals, BBMB connectivity, and renewable energy projects

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Central Electricity Regulatory Commission (CERC) has issued the Draft Central Electricity Regulatory Commission (Connectivity and General Network Access to the inter-State Transmission System) (Third Amendment) Regulations, 2024.

Withdrawal of Application

If an application for Connectivity or General Network Access (GNA) is withdrawn before the in-principle grant of connectivity (per Regulation 7) or GNA (per Regulation 22), the Nodal Agency will handle it as follows:

(a) 50% of the application fee will be forfeited.

(b) The remaining 50% of the application fee and any bank guarantee (BG) submitted will be refunded within 15 days of the withdrawal.

If an application is partially withdrawn based on the available evacuation capacity at the substation before the in-principle grant of connectivity (per Regulation 7), the Nodal Agency will:

(i) Refund the BG for the proportionate quantum withdrawn within 15 days.

(ii) For applicants under sub-clause (b) of Clause (vii) or (xi) of Regulation 5.8, the applicant must provide details of land documents for the withdrawn quantum, which the Nodal Agency will then release.

If an application is withdrawn after the in-principle grant of connectivity but before the final grant:

(a) 100% of the application fee will be forfeited.

(b) 5% of the BG will be forfeited, and the remaining 95% returned within 15 days.

(c) If Conn BG1, Conn-BG2, Conn-BG3 have been submitted, Conn BG-1 and Conn-BG2 will be encashed, while Conn-BG3 will be returned. If ATS or terminal bays haven’t been awarded by the withdrawal date, Conn-BG2 will be returned within 15 days.

(d) The application will be closed within 15 days, with notification to the applicant.

If an application is withdrawn after the final grant of connectivity but before signing the Connectivity Agreement:

(a) 100% of the application fee will be forfeited.

(b) 25% of the BG will be forfeited, and the remaining 75% returned within 15 days.

(c) Conn BG1 and Conn-BG2 will be encashed, and Conn-BG3 will be returned. If ATS or terminal bays haven’t been awarded by the withdrawal date, Conn-BG2 will be returned within 15 days.

(d) The application will be closed within 15 days, with notification to the applicant.

Partial withdrawal of an application is only allowed under Regulation 3.7.2 and not under Clauses 3.7.3 and 3.7.4.

An applicant whose BG is to be encashed can choose to pay the equivalent amount online instead and request the return of the BG.

Bhakra Beas Management Board

A Renewable Energy Generating Station (REGS) with an installed capacity of 5 MW or more, whether individually or collectively through a lead generator, owned and operated by the Bhakra Beas Management Board (BBMB), may apply for connectivity to the ISTS network of the BBMB. This includes connection to a substation, transmission line, or switchyard of a BBMB generating station. The application must be submitted to the Nodal Agency along with a system study conducted by BBMB SLDC.

A REGS with an installed capacity of less than 5 MW, owned and operated by BBMB, may apply for connectivity to the ISTS network of BBMB. This includes connection to a substation, transmission line, or switchyard of a BBMB generating station. The application should be submitted to BBMB SLDC. After BBMB SLDC approves, the REGS can connect to the BBMB network. The SLDC’s approval will be forwarded to the Nodal Agency for records. There will be no separate scheduling and accounting for such entities by RLDC. However, RLDC may include these entities in the schedule of the existing BBMB generating station to which the REGS of less than 5 MW is connected.

Amendment to Regulation 5.1 of the Principal Regulations

REGS making an application based on a letter of acceptance (LOA) or power purchase agreement (PPA) under Regulation 5.8(xi) may apply for a grant of connectivity for a quantum equal to the quantum of LOA or PPA, which may be less than the installed capacity.

Amendment to Regulation 5.5

Renewable power park developers authorized for a quantum of more than 500 MW, will be eligible to apply for a grant of connectivity in phases where, in the first phase, the application for connectivity will not be less than 500 MW. The application for balance authorized quantum will be in phases, subject to a minimum quantum of 50 MW in each phase.

Amendment to Regulation 9

The applicants who have been issued an in-principle grant of connectivity or final grant of Connectivity to ISTS for the generation projects based on particular renewable energy source(s) (with or without ESS) may, for the same connectivity quantum, change to another renewable energy source(s) (with or without ESS) or ESS in part or full, by making an application to the Nodal Agency for approval for such change within 18 months from the in-principle grant of connectivity.

The Nodal Agency may carry out system studies, as required, and approve or reject the change in energy source within 30 days of application by the applicant. On approval of such change of renewable sources, the entity shall submit the technical data for changed renewable energy sources. CTU will incorporate the necessary change in the connectivity agreement if already signed.

Amendment to Regulation 10.5

Where connectivity is granted at a proposed ISTS substation, the Nodal Agency shall confirm the final coordinates within two months of award of contract for the construction of such ISTS substation.

Introduction of Regulation 11C

To ensure optimal use of the transmission system, the Nodal Agency may reallocate connectivity granted at one ISTS substation to another ISTS substation within the same complex where a terminal bay has become vacant due to surrender or revocation, with the consent of the relevant Connectivity grantee(s). The reallocation process shall follow these steps:

  • Information about any vacant bay at a substation due to surrender or revocation will be posted on the CTU’s website and updated weekly with the date and time of the update.
  • An entity that has received a final grant of connectivity at an ISTS substation within the same complex can request reallocation to another ISTS substation with a vacant bay. This reallocation will be subject to commercial liabilities as per the Sharing Regulations 2020:
  • An entity cannot request reallocation after 18 months from receiving an in-principle grant of connectivity or 12 months from receiving a final grant, whichever is earlier.
  • An entity that has already been reallocated once cannot request another reallocation.
  • CTU will handle reallocations based on the priority of the date and time stamp of the Connectivity application that led to the Connectivity grant:
  • Stage-II Connectivity grantees under the 2009 Connectivity Regulations, transitioned under Regulation 37 of these regulations and who have submitted the required BG, will have priority based on the date and time stamp of their Stage-II application.
  • Applicants with a final grant of connectivity under these regulations will be prioritized by their application’s date and time stamp.
  • If a grantee (Grantee’ X’) relocates to another ISTS substation in the same complex and a new grantee (Grantee’ Y’) takes over the vacant terminal bay, but Grantee ‘Y’ starts connectivity later than Grantee ‘X,’ Grantee ‘X’ will be liable for the ATS/terminal bay charges for the intervening period. The start date of connectivity for the reallocated entity will remain unchanged. However, the reallocated entity may request an earlier start date, which will depend on the availability of the transmission system.

In October, CERC issued an order clarifying certain issues Grid-India raised about implementing GNA regulations for projects connected to state and central transmission utilities.

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