The Central Electricity Regulatory Commission (CERC) has proposed a new framework for grid connectivity withdrawal, energy storage systems, land bank guarantees, source change, return of connectivity bank guarantees (Conn-BGs), drawee connectivity, and transfer of general network access (GNA).

These changes are part of the draft Connectivity and General Network Access to the Inter-State Transmission System (ISTS) (Fourth Amendment) Regulations, 2026.

The Commission directed the nodal agency to revise the detailed procedure within 60 days of the regulations’ notification, following stakeholder consultation, and to submit the same to the Commission.

A key proposed change is that where the period between the likely start date of connectivity mentioned in the in-principle grant and the start date mentioned in the final grant of connectivity is two years or more, the entity will be eligible to withdraw the full connectivity quantum and seek return of all applicable bank guarantees, subject to submitting the request to the nodal agency within 30 days of final connectivity intimation.

The draft proposes that where an energy storage system (ESS) seeks connectivity, it must have a minimum discharge capacity in MWh equal to twice the connectivity quantum. It proposes that an ESS, excluding pumped storage plants, will provide a bank guarantee of ₹500,000 (~$5,168)/MW.

The draft also proposes a new route for generating stations, renewable energy generating stations, and ESS that seek only non-solar-hour access rather than full-day access. This is to be processed in a manner like the solar-hour access mechanism under the original framework, but specifically for non-solar-hour access.

Another important change relates to additional capacity and technical compliance.

According to the draft amendment, installed capacity required only for meeting technical compliances at the point of injection will not be counted as installed capacity for seeking ISTS connectivity.ESS may install renewable energy generating systems only for charging the ESS if it is additional capacity, and land or financial closure documents will not be required for such renewable capacity.

The amendment also proposes detailed changes for multi-location renewable projects. Under the draft, where a single letter of award (LoA) or power purchase agreement (PPA) provides for projects at multiple locations, the applicant may obtain connectivity at one or more locations up to the quantum for which the LoA has been awarded, the PPA has been executed, or the installed capacity mentioned at that location, whichever is lower.

For applicants, where the PPA quantum is less than the installed capacity mentioned in the LoA at the location at which connectivity has been sought, and the entity wishes to seek additional connectivity, it may apply for the balance quantum for such location.

The draft amendment allows entities to withdraw connectivity if the final grant results in a delay of two years or more from the earlier intimated start date.

For renewable energy generating stations, ESS, and renewable power park developers, the draft proposes that financial closure documents must be submitted within 15 days of the effective date of GNA.

The draft also revises the source-change framework. It proposes that the earlier reference to source change at ‘18 months prior to the firm start date of connectivity’ be replaced with ‘six months prior to the firm start date of connectivity.’ It further proposes that a second-source change be permitted for a fee of ₹50,000 (~$516.77)/MW.

On Conn-BGs, the draft proposes a significant change from the earlier return mechanism. It is proposed that Conn-BG2 and Conn-BG3 be returned within one week after one year from the declaration of commercial operation of the corresponding generation capacity, rather than in five equal parts over five years.

The draft introduces a new Regulation 17.5 for drawee entities connected to intrastate transmission or distribution systems that wish to connect directly to the ISTS. Such entities may seek ISTS connectivity for the drawal capacity to which they are already connected to the intrastate or distribution system, subject to the consent of the concerned State Transmission Utility and payment of applicable charges.

Similarly, a GNA grantee connected to ISTS may connect to an intra-state transmission or distribution system if permitted under state regulations and found technically feasible by the nodal agency.

A new Regulation 23A is also proposed for the transfer of GNA. Where an entity has been granted GNA for drawal at a single point for an identified load, and the load itself is sold to another entity, the GNA may also be transferred to the new owner of the load after the GNA becomes effective, subject to clearance of dues.

Recently, CERC proposed a one-time framework to address renewable energy projects that secured transmission connectivity under the GNA regulations based on LoAs, but for which PPAs have not been signed within 12 months.

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