The Central Transmission Utility of India (CTUIL) has issued a revised detailed procedure for the grant of connectivity and general network access (GNA), expanding the operational framework for accessing the interstate transmission system (ISTS), introducing stricter compliance requirements, while adding new mechanisms to improve transmission capacity utilization.

A key feature of the revised procedure is the introduction of a reallocation framework for connectivity, which allows the redistribution of vacated or underutilized capacity across substations within defined clusters.

The framework remains subject to approval by the Central Electricity Regulatory Commission.

Under the proposed framework, CTU will publish available transmission margins within 3 working days of their arising. Reallocation will not be undertaken where the available capacity at a substation is less than 50 MW.

The framework imposes eligibility limits, making entities ineligible for reallocation after 12 months from the final grant of connectivity or 18 months before the firm start date, whichever is later.

Reallocation will be made only after processing applications for change in source and right-of-first-refusal (RoFR)-based capacity allocations, and before fresh allocations to non-RoFR applicants.

Entities availing reallocation cannot opt for partial capacity or seek reallocation more than once, and the nature of access, start date, and compliance timelines remain unchanged. Revised bank guarantees must be submitted within one month, failing which, the reallocation will be canceled.

In addition, entities vacating capacity remain liable for transmission charges, including those related to augmentation or terminal bays, during the interim period until reallocation. Developers who have constructed terminal infrastructure at their own cost will not be eligible for compensation upon such reallocation.

Stricter Application Screening

Applications with major deficiencies will be closed within 10 working days, with 20% of the application fee forfeited and the remaining 80% refunded within 15 days. Applications with minor deficiencies will be returned within 10 working days, and applicants will have 7 working days to rectify them; failing which, the application may be closed.

The procedure clarifies that revised applications must strictly adhere to the original application route, and no additional documents can be submitted outside the prescribed portal-based process after resubmission.

Timelines for Connectivity Processing

In-principle connectivity is to be granted within 60 days from the last day of the month in which the application is received for cases that do not require transmission augmentation, while cases involving augmentation may take up to 90 days.

However, where the competent authority does not approve the required transmission system, applications, including those with in-principle grants, may be closed, with bank guarantees returned and no priority accorded to subsequent fresh applications.

The procedure also strengthens the consultative process under the Consultation Meeting for Evolving Transmission Schemes, requiring that meeting agendas be circulated at least 7 days in advance, that minutes be issued within 30 days, and that objections be raised within 7 working days.

Land and Financial Requirements

The procedure prescribes minimum land requirements of 3 acres per MW for solar projects, 0.25 acres per MW for wind projects, and 0.03 acres per MWh for battery energy storage systems (BESS), with specific technical requirements such as turbine-level layouts for wind projects. For hybrid projects, land requirements are calculated by summing the individual components.

It also outlines benchmark project costs of ₹50 million (~$535,644)/MW for solar, ₹80 million (~$857,569)/MW for wind, and ₹20 million (~$214,392)/MWh for BESS.

Applicants must submit registered land ownership or lease documents, title reports, and proof of possession, along with detailed financial closure documentation, including sanction letters, board resolutions, and net worth certificates.

Financial closure may be demonstrated through lender financing, group company funding, self-funding, or confirmation from implementing agencies, such as renewable energy implementing agencies or distribution licensees.

Financial closure must be achieved at least six months before the scheduled commercial operation date or the firm start date of connectivity, whichever is later. Once achieved, the documents must be submitted within 15 days, following which CTUIL will scrutinize them within another 15 days. Applicants are given seven working days to address any deficiencies identified during scrutiny.

The procedure also allows a one-time change to land parcels, subject to conditions, without altering the substation’s connectivity or the start date.

Failure to meet these requirements within the stipulated timelines can result in revocation of connectivity and encashment of bank guarantees, with limited scope for extensions.

Bank Guarantees and Charges

The land bank guarantee is set at ₹100,000 (~$1,071)/MW for projects up to 1,000 MW, and at ₹1 billion (~$10.71 million) plus ₹500,000 (~$5,359)/MW for projects with capacity beyond 1,000 MW.

For entities such as bulk consumers and distribution licensees that draw power directly from the ISTS, a one-time GNA charge of ₹100,000 (~$1,071)/MW must be paid at least one month before the GNA start date.

The procedure reiterates that bank guarantees must be unconditional, irrevocable, and enforceable on demand, and may be invoked for non-compliance, including delays in payments or project milestones.

Control and Ownership Rules

Developers must obtain prior approval from CTUIL before undertaking any ownership transfer, supported by detailed documentation, including board resolutions, transaction agreements, and disclosures of control structure before and after the transaction. Requests must be submitted at least 90 days in advance and will be processed within defined timelines.

The provisions also cover cases such as insolvency proceedings, lender step-in rights, and restructuring transactions, to prevent speculative trading in connectivity rights.

Flexibility for Hybrid Projects

The procedure allows for a change in the generation source, subject to approval and system constraints. However, such changes are permitted only once and cannot alter the connectivity start date or compliance timelines. Conversion involving energy storage systems is restricted, and allocation of non-solar-hour access is subject to available transmission margins.

The framework also incorporates provisions such as right of first refusal and differentiated solar and non-solar access, reflecting the evolving requirements of hybrid and round-the-clock renewable energy projects.

Monitoring and Compliance Framework

CTUIL will undertake continuous monitoring of project progress through periodic reporting, quarterly Joint Coordination Committee meetings, and public disclosure of implementation status. Failure to meet milestones or submit accurate data may trigger regulatory action, including revocation of connectivity.

The procedure also formalizes provisions for the sharing of transmission infrastructure, including the designation of a principal and sharing entities for common bays and dedicated lines, thereby further optimizing transmission capacity utilization.

In January, CTUIL issued an advisory clarifying the processing of applications for renewable energy generator connection details in line with the Central Electricity Regulatory Commission’s GNA Regulations.

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