Himachal Pradesh Tenders 9 MW Solar Project with 6.3 MWh Battery Storage

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Daily News Wrap-Up: Market Leaders in India’s Solar Sector in 2025

Germany Awards 3.4 GW of Onshore Wind and 155 MW of Solar Projects

NTPC Renewables Tenders BoS Package for 200 MW Solar Project in Rajasthan

POWERGRID Wins PFC Consulting’s ISTS Tender to Evacuate 2.7 GW of Renewables

MNRE Floats Consultancy Tender for National Renewable Energy Portal Operations

Inox Clean Acquires Macquarie-Owned Vibrant Energy for ₹50 Billion

Himachal Pradesh Sets Levelized Tariffs for Distributed Solar Projects

CEA Notifies Rules on Safety Framework for Battery Energy Storage Systems

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					</table>India has targeted expanding its power transmission network by 137,500 circuit km (ckm) of lines and 827,600 MVA of substation capacity, at an estimated cost of ₹7.93 trillion (~$84.33 billion), to support 900 GW of non-fossil fuel capacity by the financial year 2035-36, according to the Central Electricity Authority (<a href="https://cercind.gov.in/" target="_blank" rel="noopener">CEA</a>).<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/03/Picture1-11.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-92512 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/03/Picture1-11.png" alt="Transmission Plan for Integration of over 900 GW Non-Fossil Fuel Capacity by 2035-36" width="903" height="472" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/03/Picture1-11.png 903w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/03/Picture1-11-300x157.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/03/Picture1-11-768x401.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/03/Picture1-11-650x340.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/03/Picture1-11-624x326.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/03/Picture1-11-600x314.png 600w" sizes="auto, (max-width: 903px) 100vw, 903px" /></a>
Transmission Integration Planning
In its Transmission Plan for Integration of Over 900 GW Non-Fossil Fuel Capacity by 2035-36, the CEA said the government has planned to integrate approximately 20 GW of renewable energy capacity into the intrastate transmission system (InSTS) under the Green Energy Corridor (GEC)-II program.
The recently proposed GEC-III program is expected to further enhance InSTS evacuation of an additional 134.7 GW of power from solar, wind, and hydroelectricity projects and 25.2 GW from pumped hydro storage projects (PSP), with grid augmentation in 24 renewable energy-rich states.
Under this program, the transmission infrastructure will be increased by 51,126 ckm, and substations of an aggregate capacity of 228,903 MVA will be established. The proposed program will support the development of 44.8 GWh of battery energy storage capacity.
Approximately 33.3 GW of solar and wind capacity will also be integrated with the InSTS network in Rajasthan, Gujarat, and Karnataka. The expected capacity to be evacuated in each of these states is 10 GW, 15 GW, and 8.3 GW, respectively.
The CEA states that India’s installed hydroelectricity capacity is 51,165 MW. Transmission systems for such projects have been planned to help evacuate 12.7 GW of generated power, and a transmission system to evacuate 13 GW is under planning.
Approximately 31.5 GW of transmission capacity margins are also available at existing non-renewable energy ISTS substations. The CEA said these margins can be used to integrate renewable energy.
With the current installed nuclear capacity at 8.78 GW, the government plans to expand the transmission system to evacuate an additional 7 GW of power from such projects.
Ultra-High Voltage Transmission Corridors
India is planning to install 1,1150 kV of ultra-high-voltage transmission corridors to evacuate large power capacities from renewable-rich areas and support green hydrogen hubs and industries. This includes 16 GW of renewable energy in Rajasthan and 23.1 GW of industrial demand in Odisha. The planning also covers the evacuation of 7 GW of new thermal capacity in Chhattisgarh and 4 GW in Odisha. These transmission corridors will also integrate key renewable energy regions.
Projected Electricity Demand
India’s peak demand is <a href="https://www.mercomindia.com/cea-projects-indias-peak-power-demand-to-reach-459-gw-by-2035-36" target="_blank" rel="noopener">projected</a> to rise to 459 GW by 2035-36, with the country’s yearly electricity requirement expected to increase from 1,929 billion units (BU) to 3,365 BU over the same period.
The Ministry of New and Renewable Energy (MNRE), in consultation with the states, has declared a total of 608.1 GW renewable energy power generation potential in multiple states rich in these sources by 2035-36 for transmission planning under the interstate transmission system (ISTS).
Rajasthan led the northern states in renewable energy potential, with 259.8 GW. Gujarat, Maharashtra, and Madhya Pradesh led the western states in generation potential, at 136.1 GW, 21 GW, and 49.5 GW, respectively. Andhra Pradesh led the southern states with 88 GW, followed by Karnataka with 32.7 GW, Tamil Nadu with 8 GW, and Telangana with 13 GW.
MNRE also undertook transmission planning to evacuate renewable energy from Ladakh and Assam, with both projected to reach capacities of 9 GW and 1 GW, respectively, by 2035-36.
The Central Electricity Regulatory Commission (Third Amendment) Regulations, 2025,<a href="https://www.mercomindia.com/cerc-notifies-amendment-to-connectivity-and-gna-regulations-2025" target="_blank" rel="noopener"> introduced</a> solar and non-solar hour access, directing solar projects to operate during solar hours. The Commission also directed wind and storage energy projects to supply power around the clock.
The CEA said this framework will help improve the efficient use of transmission capacity. It also supports wind-solar and battery storage hybrid projects to ensure a reliable power supply.  A margin of roughly 176 GW is available during non-solar hours, with connectivity applications already submitted for approximately 105 GW.
According to the CEA, long-duration energy storage of around six hours will be required to integrate higher levels of renewable energy beyond 2030. It notes PSPs as a cost-effective solution that also supports grid stability through frequency and voltage control.
This January, the CEA <a href="https://www.mercomindia.com/cea-highlights-pumped-storage-as-base-load-to-address-peak-power-demand?utm_source" target="_blank" rel="noopener">published</a> the Roadmap for Achieving 100 GW of Hydro Pumped Storage Projects by 2034–35, outlining the development pathway for India’s PSP capacity. It also presented the transmission planning framework for effective PSP and grid integration.

India Eyes 137,500 ckm Grid Expansion to Support 900 GW Renewables by FY 2036

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					</table><a href="https://terraclean.in/" target="_blank" rel="noopener">Terra Clean</a>, an Indian Oil Corporation (<a href="https://iocl.com/" target="_blank" rel="noopener">IOCL</a>) subsidiary, has invited bids to develop a 100 MW end-to-end intrastate transmission system (InSTS)-connected wind project in Gujarat.
The last date to submit bids is April 17, 2026. Bids will be opened on the same day.
Bidders must submit an earnest money deposit (EMD) of ₹23.69 million (~$254,201) and a bidding fee for the electronic tendering system of ₹30,000 (~$321.91).
Government organizations and public sector undertakings of the central/state government, joint venture/subsidiary companies of IOCL, and startup entities registered with the Government of India will be exempt from submitting the EMD.
Apart from setting up the InSTS project, the scope of work covers comprehensive operation and maintenance for 10 years.
The project must be executed on a lump-sum turnkey model and within 23 months. It must be interconnected at the 66 kV level.
Bidders must be class-I local suppliers.
Bidders must have completed a wind project comprising land acquisition/aggregation/arrangement, design, engineering, construction, and commissioning of wind turbine generators and power evacuation infrastructure at the 66 kV level for at least 15 MW in the last seven years.
They must have cumulatively completed wind projects comprising land acquisition/land aggregation/land arrangement, design, engineering, construction, installation, and commissioning of wind turbine generators and their power evacuation infrastructure at the 66 kV level for at least 50 MW during the same period.
Bidders must have a positive net worth in the preceding financial year. This net worth must be at least equal to their 100% paid-up share capital.
Bidders must have a minimum annual turnover of ₹1.25 billion (~$13.4 million) over the past three financial years.
Last year, Terra Clean <a href="https://www.mercomindia.com/terra-clean-floats-land-evacuation-bop-tender-for-275-mw-wind-project" target="_blank" rel="noopener">invited</a> bids for land, power evacuation, and a balance-of-plant package for a 275 MW interstate transmission-system-connected wind project.
In the same year, it <a href="https://www.mercomindia.com/terra-clean-issues-land-aggregation-tender-for-300-mw-solar-projects" target="_blank" rel="noopener">issued</a> a request for proposal for land aggregation to develop a 300 MW InSTS-connected solar project in Gujarat.
Terra Clean also <a href="https://www.mercomindia.com/terra-clean-issues-land-aggregation-tender-for-100-mw-solar-projects" target="_blank" rel="noopener">invited</a> bids to aggregate land for 100 MW InSTS-connected solar power projects in Banaskantha, Gujarat.
Recently, Terra Clean <a href="https://www.mercomindia.com/terra-clean-issues-tender-for-291-transformers-for-renewable-energy-projects" target="_blank" rel="noopener">issued</a> a tender to supply 291 transformers for interstate- or intrastate-connected renewable energy projects at multiple locations.

Terra Clean Invites Bids to Develop a 100 MW Wind Project in Gujarat

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					</table>The Punjab State Electricity Regulatory Commission (<a href="https://pserc.punjab.gov.in/" target="_blank" rel="noopener">PSERC</a>) has proposed amendments to the Punjab State Electricity Regulatory Commission (Terms &amp; Conditions for Intra-State Open Access) Regulations, 2011, to permit the carry-forward of banked energy for intrastate transmission system (InSTS) connected green energy open access projects, including captive users.
It proposed permitting the month-to-month carry-forward of banked energy until the end of the settlement period.
Stakeholders can share their feedback before April 20, 2026.
As per the draft amendments, the carry-forward of banked energy will be allowed from June 1 of the current calendar year to May 31 of the next calendar year.
The proposed amendments also specify that any unused banked energy remaining at the end of the settlement period will lapse, and no compensation will be provided for the lapsed energy.
The settlement period for FY 2026 is proposed to be extended to May 31, 2026, with any unused surplus power for FY 2026 to be managed under the Electricity (Promoting Renewable Energy to Green Energy Open Access) Amendment Rules, 2023.
Last year, PSERC <a href="https://mercomindia.com/pserc-approves-additional-surcharge-for-partial-and-full-open-access-power-consumers" target="_blank" rel="noopener">accepted</a> the Punjab State Power Corporation’s request to approve an additional surcharge of ₹1.22 (~$0.014)/kWh for full open access consumers and ₹0.83 (~$0.009)/kWh for partial open access power consumers.
For InSTS-connected projects, PSERC <a href="https://mercomindia.com/punjab-draft-deviation-settlement-guidelines" target="_blank" rel="noopener">issued</a> the draft Deviation Settlement Mechanism and Related Matters Regulations, 2025, to establish a commercial mechanism to ensure grid users’ adherence to scheduled electricity drawal and injection and maintain grid security and stability.
The Ministry of Power recently <a href="https://www.mercomindia.com/easing-group-captive-norms-may-boost-ci-participation" target="_blank" rel="noopener">allowed</a> group captive projects to meet the 51% consumption requirement collectively, rather than based on the individual proportionality requirement. This has raised hopes for increased adoption of open access by commercial and industrial consumers.
According to Mercom’s Q4 &amp; Annual 2025 India Solar Open Access Market Report, India <a href="https://www.mercomindia.com/india-adds-7-8-gw-of-solar-open-access-capacity-in-2025" target="_blank" rel="noopener">added</a> 7.8 GW of solar open access capacity in 2025, a largely flat 0.5% year-over-year growth from 7.7 GW.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

Punjab Proposes Carry-Forward of Banked Energy for InSTS Open Access Projects

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					</table>The Karnataka Electricity Regulatory Commission <a href="https://www.mercomindia.com/karnataka-revises-power-tariffs-after-allowing-discoms-review-petition" target="_blank" rel="noopener">allowed</a> a review petition filed by the state’s electricity distribution companies (DISCOMs) and revised tariffs for agricultural, commercial, and industrial consumer categories for the financial year 2025-26. The revisions apply lower tariffs to the agricultural pump set category under LT-4(a) and higher tariffs to select commercial and industrial categories, including LT-3(a), LT-5, HT-2(a), and HT-2(b).
Himachal Pradesh State Load Dispatch Centre <a href="https://www.mercomindia.com/himachal-proposes-short-term-green-energy-open-access-through-insts-systems" target="_blank" rel="noopener">issued</a> the draft procedure for the grant of short-term green energy open access through intrastate transmission systems. Eligible entities must be consumers with a contracted demand or approved load of at least 100 kW, either through a single or multiple connections aggregating at least 100 kW. These connections must be located in the same electricity division of a distribution licensee.
Power Grid Corporation of India (POWERGRID) <a href="https://cms.mercomindia.com/powergrid-floats-tenders-to-set-up-300-mw-600-mwh-battery-storage-systems/" target="_blank" rel="noopener">floated</a> tenders to set up three standalone battery energy storage systems (BESS) of 100 MW/200 MWh each in Punjab. One BESS will be set up in Ludhiana and two in Patiala. The last day to submit the bids is March 18, 2026. Bids will be opened on the same day. POWERGRID plans to participate in Punjab State Power Corporation’s tender to select a battery energy storage system developer for setting up 500 MW/1,000 MWh of standalone BESS projects in Punjab.
Energy solutions provider Apraava Energy and Jyoti Structures, an engineering, procurement, and construction firm, have <a href="https://www.mercomindia.com/apraava-jyoti-structures-commission-transmission-lines-to-evacuate-renewables" target="_blank" rel="noopener">announced</a> the commissioning of two transmission projects in Rajasthan and Karnataka. Apraava commissioned a 22-km, 400 kV Fatehgarh-IV transmission line along with a 400/220 kV pooling substation in Barmer, Rajasthan, as part of the transmission program for evacuating power from Rajasthan’s renewable energy zones under Phase-III Part A1.
The Indian Energy Exchange <a href="https://www.mercomindia.com/iex-power-trade-surges-30-yoy-to-12550-mu-in-february" target="_blank" rel="noopener">recorded</a> a total electricity-traded volume of 12,550 million units (MU) in February 2026, a 30.4% year-over-year (YoY) increase, and its highest daily average volume of 448 MU. During the month, India’s electricity consumption reached 133 BU, up 1.9% YoY. Despite the rise in demand, electricity prices on the exchange declined due to increased liquidity in the supply.
UltraTech Cement, an Aditya Birla Group company, <a href="https://www.mercomindia.com/ultratech-to-procure-solar-power-from-ampin-spvs-30-mw-project" target="_blank" rel="noopener">signed</a> an energy supply and a share subscription and shareholders agreement to source power from AMPIN C&amp;I Power Forty Four’s 30 MW solar project. Ultratech will invest ₹151.2 million (~$1.64 million) to purchase 26% of the shares of AMPIN C&amp;I Power Forty Four, a special purpose vehicle of AMPIN Energy Transition incorporated to generate and transmit renewable energy.

Daily News Wrap-Up: Karnataka Revises Power Tariffs

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					</table><a href="https://www.nhpcindia.com/" target="_blank" rel="noopener">NHPC</a> has invited bids to set up 500 MW/1,000 MWh standalone battery energy storage systems (BESS) connected to the intrastate transmission system in Andhra Pradesh (Tranche II).
Developers will be eligible for viability gap funding of ₹2.7 million (~$32,114)/MWh or 30% of the project’s capital cost, whichever is lower.
Bids must be submitted by March 17, 2025. Bids will be opened on March 20.
Bidders must submit an earnest money deposit ₹341,000 (~$3,930)/MWh.
Selected bidders must furnish a performance bank guarantee of ₹852,500 (~$9,826)/MWh.
They must also provide a payment security deposit of ₹500,000 (~$5,763)/MWh to NHPC before declaring the commissioning of the project’s first part capacity.
Successful bidders must ensure the BESS is available for two operational cycles daily, maintain a minimum monthly system availability of 95%, and guarantee an AC-to-AC roundtrip efficiency of 85% monthly.
Successful bidders must employ commercially established and operational technologies that are compliant with the guidelines specified in codes and standards to minimize technology risks.
They must commission the projects within 18 months of signing the battery energy storage purchase agreement.
Bidders must pay a processing fee based on cumulative capacity:
<ul>
<li>₹300,000 (~$3,457) + 18% GST for 40 MWh</li>
<li>₹500,000 (~$5,763) + 18% GST for above 40 MWh and up to 100 MWh</li>
<li>₹1 million (~$11,526) + 18% GST for above 100 MWh and up to 250 MWh</li>
<li>₹2 million (~$23,052) + 18% GST for above 250 MWh and up to 500 MWh</li>
<li>₹3 million (~$34,578) + 18% GST for above 500 MWh</li>
</ul>
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/NHPC-BESS-Andhra-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-76504 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/NHPC-BESS-Andhra-1.png" alt="NHPC BESS Andhra" width="822" height="248" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/NHPC-BESS-Andhra-1.png 822w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/NHPC-BESS-Andhra-1-300x91.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/NHPC-BESS-Andhra-1-768x232.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/NHPC-BESS-Andhra-1-650x196.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/NHPC-BESS-Andhra-1-624x188.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/NHPC-BESS-Andhra-1-600x181.png 600w" sizes="auto, (max-width: 822px) 100vw, 822px" /></a>
Bidders must have a minimum net worth of ₹3.4 million (~$39,187)/MWh of the quoted capacity during the last financial year’s end or seven days before the bid submission deadline.
In January, NHPC <a href="https://www.mercomindia.com/nhpc-125-mw-500-mwh-standalone-bess" target="_blank" rel="noopener">issued</a> a tender to develop 125 MW/500 MWh standalone BESS connected to the intrastate transmission system in Kerala (Tranche I).
Onix Renewable, Jindal India Renewable Energy, NTPC Renewable Energy, Kolar Solar Power (Rays Power Infra), ReNew Solar Power, and Adani Renewable Energy Holding Nine (Adani Green) <a href="https://www.mercomindia.com/nhpc-1-2-gw-solar-plus-storage-auction" target="_blank" rel="noopener">won</a> NHPC’s auction to set up 1,200 MW solar power projects with 600 MW/1,200 MWh energy storage systems.

NHPC Invites Bids for 500 MW/1 GWh Standalone BESS in Andhra Pradesh

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					</table>The Assam Electricity Regulatory Commission (<a href="https://aerc.gov.in/" target="_blank" rel="noopener">AERC</a>) has issued the Draft (Grant of Connectivity to the Intra-State Transmission System) Regulations, 2025,&#8221; outlining the processes, criteria, and conditions for granting connectivity to the Intra-State Transmission System (InSTS).
The regulations apply to all applications submitted for connectivity to the InSTS on or after April 1, 2025. They cover power generators, renewable energy developers, distribution licensees, standalone energy storage systems (ESS) operators, and entities involved in cross-border electricity trade. Applications submitted before this date are excluded from these regulations’ scope.
Connectivity will only be granted if the applicants meets the criteria for injecting or drawee entities. In addition to ensuring compliance with technical standards, the framework aligns with the Central Electricity Authority guidelines and other regulatory provisions outlined by the Central Electricity Regulatory Commission.
Eligibility Criteria
Injecting Entities
<ul>
<li>Generating stations, including thermal, hydro, and renewable energy generators, with an installed capacity of at least 25 MW. Renewable power park developers are also eligible.</li>
<li>Standalone ESS, with or without renewable generation, with a minimum installed capacity of 25 MW.</li>
<li>Captive generating projects injecting at least 25 MW into the InSTS.</li>
<li>Renewable energy generating stations may seek connectivity through existing generating stations if an agreement exists for sharing infrastructure, including switchyards and transmission lines.</li>
</ul>
Drawee Entities
<ul>
<li>Distribution licensees may applying for connectivity on behalf of the entities connected to their network.</li>
<li>Drawees directly connected to the InSTS with at least 15 MW load.</li>
<li>Transmission licensees requiring connectivity for auxiliary power drawal.</li>
<li>Trading licensees engaged in cross-border trade of electricity.</li>
</ul>
Application Process and Fee Structure
Applicants must formally apply to the state transmission utility (STU) to initiate the connectivity process. The application must include all relevant details and supporting documents stipulated by the regulations. Applicants must pay a non-refundable application fee of ₹100,000 (~$1,158) and applicable taxes.
Applications submitted during a calendar month will be processed collectively by the end of that month. Upon receipt, the STU will issue an acknowledgment specifying the date and time of submission.
If an application contains deficiencies, the STU will notify the applicant, allowing 15 days to address these issues. Failure to rectify the deficiencies on time will result in the application&#8217;s closure. In such cases, 20% of the application fee will be forfeited, while the remaining 80% will be refunded.
Priority and Timeline
Applications will be processed on a first-come, first-served basis unless otherwise specified. Minor deficiencies, such as incomplete technical documentation, do not affect the priority of the application if rectified within the allowed time.
Bank Guarantees 
Applicants must submit three types of bank guarantees (BGs) as part of the connectivity process. These BGs ensure financial accountability and safeguard the interests of the transmission system operators.
<ul>
<li>Conn-BG1: This is a fixed amount of ₹100,000 (~$1,158)/MW of applied capacity.</li>
<li>Conn-BG2: The value depends on the voltage level of the terminal bay allocated. For example:</li>
</ul>
<ol>
<li style="list-style-type: none;">
<ul>
<li>₹10 million (~$115,854) for a 33 kV terminal bay.</li>
<li>₹20 million (~$231,727) for a 132 kV terminal bay.</li>
<li>₹30 million (~$347,563) for a 220/230 kV terminal bay.</li>
<li>₹60 million (~$695,181) for a 400 kV terminal bay.</li>
<li>₹120 million (~$1.39 million) for a 765 kV terminal bay.</li>
</ul>
</li>
</ol>
<ul>
<li>Conn-BG3: This is calculated at ₹200,000 (~$2,317)/MW for systems requiring augmentation without associated transmission systems.</li>
</ul>
Applicants must furnish these bank guarantees within one month of receiving in-principal approval—failure to do so will result in the application fee’s forfeiture and closure of the application. In cases, the bank guarantees may be encashed to cover costs incurred by the STU.
Stages of Granting Connectivity
The granting of connectivity follows a two-stage process:
In-Principal Approval
Upon receiving a complete application, the STU will conduct an interconnection study to assess the feasibility of the proposed connection. This study includes determining the requirement of augmentation of the existing transmission system. If no augmentation is necessary, the STU will issue in-principal approval within 45 days. For applications requiring augmentation, the timeline will be extended to 90 days.
Final Approval
After the applicant submits the required bank guarantees, the STU will issue final approval within 30 days. This approval includes detailed technical information, including the single-line diagram and terminal bay location, formalizing the applicant&#8217;s connectivity to the grid.
Dedicated Transmission Lines
Connectivity grantees must establish and maintain dedicated transmission lines at their own expense. These lines must meet the technical standards set by the Central Electricity Authority. Renewable power park developers may share these responsibilities under mutually agreed terms with other entities.
Grantees opting to construct terminal bays independently must obtain prior approval from the STU. Costs associated with such construction cannot be claimed for reimbursement in the event of connectivity revocation.
Monitoring and Compliance
Connectivity grantees must provide quarterly progress updates to ensure timely project completion. The updates must cover all work under the grantee&#8217;s scope, including the construction of dedicated transmission lines and terminal bays.
The STU will also provide updates on the progress of associated transmission systems and terminal bay construction. This information is made publicly available to maintain transparency and accountability.
Non-compliance with these monitoring requirements or delays in project execution may result in penalties, including the encashment of bank guarantees and revocation of connectivity.
Relinquishing Connectivity
The AERC regulations include a detailed and structured framework for relinquishing connectivity rights. This provision allows entities to surrender their connectivity in part or in full if their requirements change or they cannot comply with the terms of the connectivity agreement. Relinquishment is subject to the following conditions:
Notice Period and Charges
Connectivity grantees must provide written notice of at least 30 days to the STU before relinquishing their rights. The relinquishment charges will be calculated based on the transmission charges for the relinquished quantum, with the following conditions:
Relinquishment of Full Connectivity:
<ul>
<li>The grantee will have to pay charges equivalent to 24 times the transmission charges paid by such drawee entity for the last billing month corresponding to the relinquished quantum.</li>
</ul>
Relinquishment of Partial Connectivity:
<ul>
<li>For partial relinquishment, charges will be calculated proportionately for the relinquished quantum.</li>
</ul>
Reduced Charges for Shorter Connectivity Periods:
<ol>
<li style="list-style-type: none;">
<ul>
<li>If the remaining period of connectivity is less than 24 months, the relinquishment charges will be reduced accordingly and are limited to the remaining months.</li>
</ul>
</li>
</ol>
Bank Guarantee Encashment
Bank guarantees provided by the applicant at the time of connectivity application may be encashed under specific circumstances:
<ul>
<li>Conn-BG1 will be encashed in full for the relinquished capacity.</li>
<li>Conn-BG2 will be encashed in proportion to the costs incurred for terminal bays or augmentation already completed or awarded for implementation.</li>
<li>Conn-BG3 will be encashed in proportion to the quantum of connectivity being relinquished.</li>
</ul>
The proceeds from the encashed bank guarantees will be adjusted against the outstanding transmission charges or used to reduce the transmission charges for the InSTS system.
Conditions for Relinquishment by Distribution Licensees
Distribution licensees may relinquish connectivity on behalf of drawees connected to their network in the following cases:
<ul>
<li>The relinquishment charges will be determined based on the quantum of power drawn by the drawee.</li>
<li>The charges will be equivalent to 24 months of the drawee&#8217;s transmission charges from the last billing month.</li>
<li>If the drawee substitutes its connectivity with direct connectivity to the InSTS, the relinquished capacity will be deducted from the total connectivity allocated to the distribution licensee.</li>
</ul>
Partial Relinquishment
The remaining capacity will be governed under the connectivity agreement if partial connectivity is relinquished.  The STU will adjust the connectivity grant to reflect the reduced quantum, issuing a revised grant for the retained capacity.
Relinquishment Timeline
Once the notice period of 30 days expires, the relinquishment becomes effective. The STU updates its records and notifies the connectivity grantee of the revised terms or disconnection, depending on whether the relinquishment is partial or full.
Impact of Relinquishment on Other Entities
The relinquishment of connectivity may impact other grantees sharing the same infrastructure as follows:
<ul>
<li>If augmentation or terminal bay construction has been initiated for the relinquished capacity, the costs will be distributed among the remaining grantees.</li>
<li>The STU may reallocate the released capacity to other applicants, prioritizing entities on the waiting list.</li>
</ul>
Non-Compliance Penalties 
Penalties will be imposed on entities relinquishing connectivity without paying the required charges or failing to notify the STU within the specified timeline. These penalties include:
<ul>
<li>Encashment of all bank guarantees submitted by the grantee.</li>
<li>Revocation of connectivity rights for the entire capacity.</li>
</ul>
Connectivity Revocation
The STU can revoke connectivity under the following circumstances:
<ul>
<li>Failure to achieve the commercial operation date specified in the connectivity agreement.</li>
<li>Termination of power purchase agreements or letters of award that formed the basis for connectivity.</li>
<li>Non-payment of transmission charges for more than three months.</li>
</ul>
Revocation will result in the encashment of bank guarantees, with the proceeds used to cover transmission charges or other liabilities.
In September 2024, AERC <a href="https://www.mercomindia.com/assam-regulator-unveils-and-virtual-net-metering" target="_blank" rel="noopener">released</a> draft guidelines for implementing group net metering and virtual net metering frameworks for renewable energy systems. These guidelines, which will become effective upon issuance, aim to promote the adoption of renewable energy and provide more flexible options for consumers.
Subscribe to &#8216;Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you ‘don’t miss any critical updates from the renewable industry.

Assam Issues Draft Intra-State Transmission System Connectivity Regulations

Punjab State Power Corporation (<a href="https://pspcl.in/" target="_blank" rel="noopener">PSPCL</a>) has issued a request for selection (RfS) to procure power from 1 GW of solar projects with a minimum capacity of 5 MW located in Punjab through a long-term tariff-based competitive bidding process.
Successful bidders must set up the solar project and the transmission network up to the delivery point. The State Power Corporation will enter into a power purchase agreement (PPA) with successful bidders for 25 years from the scheduled commercial operation date of the project.
The last day to submit the bids is June 21, 2022. Bids will be opened on the same day. The reverse auction will be held on June 29, 2022.
The bidders must pay a non-refundable RfS document fee of ₹25,000 (~$326) and a tender processing fee of ₹300,000 (~$3,915). Bidders must also submit an earnest money deposit of ₹400,000 (~$5,220)/MW with the RfS.
Successful bidders must furnish a performance guarantee of ₹1.18 million (~$15,399)/MW after the letter of intent is issued and before signing the PPA.
The projects to be selected under this tender can be installed anywhere in Punjab. However, only commercially established and operational technologies can be used to minimize the technology risk and achieve the timely commissioning of the projects. Bidders must comply with the Ministry of New and Renewable Energy’s list of models and module manufacturers under the Approved List of Models and Manufacturers (ALMM) regulation.
Projects under construction, projects which are not yet commissioned, and projects already commissioned but do not have any long-term committed PPA with any agency and selling power on a short-term or merchant plant basis will be considered. However, these projects must not be accepted under any other central or state programs and should not have any obligations towards existing buyers.
Only PSPCL or Punjab State Transmission Corporation grid-connected intrastate projects would be eligible.
The projects can be set up anywhere in Punjab. The minimum bid capacity must be 5 MW. Bidders can offer projects at multiple locations subject to each project having a minimum capacity of 5 MW. However, the cumulative capacity offered must not exceed 1 GW.
The competitive tariff to be initially quoted by the bidders must be firm and should be less than ₹2.55 (~$0.033)/kWh. This will be followed by an e-reverse auction.
The net worth of the bidders as of the last date of the previous financial year ending FY 2021-22 must not be less than ₹10 million (~$130,498)/MW of quoted capacity. During the last audited financial year, bidders should have a minimum annual turnover of ₹5 million (~$65,249).
Bidders must have an internal resource generation capability in the form of profit before depreciation, interest, and taxes (PBDIT) for a minimum of ₹1 million (~$13,049)/MW of quoted capacity. They must have an in-principle sanction letter from the lending institutions committing a line of credit for ₹1.25 million (~$16,312)/MW of quoted capacity.
PSPCL has <a href="https://mercomindia.com/bids-invited-to-procure-power-from-1-gw-of-solar-projects/" target="_blank" rel="noopener">issued</a> another request for selection (RfS) to procure power from 1 GW of inter-state transmission system connected solar projects in India through a long-term tariff-based competitive bidding process.
Subscribe to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker </a>to stay on top of tender activity in real-time.

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