GRID India Drafts Rules to Assess Transmission Connectivity Utilization

Regulatory Action on Grid Connectivity

The Grid Controller of India (GRID India), through the National Load Despatch Centre (NLDC), has issued draft procedures to formally monitor and assess the utilization of transmission connectivity and General Network Access (GNA). This regulatory intervention targets systemic inefficiencies within the Inter-State Transmission System (ISTS), specifically focusing on preventing the “locking up” of network capacity without corresponding power flow. While the Central Electricity Regulatory Commission (CERC) defines the policy framework for project relief and capacity surrender, GRID India’s new technical methodology establishes the metrics for identifying underutilization, ensuring that infrastructure remains available for viable energy projects rather than being held by speculative interests.

The Context: India’s Transmission Bottleneck and Stranded Capacity

The proposed rules address a widening gap between renewable energy (RE) generation and evacuation infrastructure. Technical data suggests that “speculative hoarding” has created an artificial scarcity of grid access, particularly in resource-rich regions. In hotspots like Bikaner and Fatehgarh, developers have reportedly paid premiums as high as ₹40 lakh per MW to secure connectivity, despite a significant portion of the existing grid remains functionally idle.

Key findings from recent IEEFA and JMK Research reports highlight the necessity of these rules:

• Stranded Renewable Capacity: As of June 2025, approximately 50 GW of renewable energy projects are stranded nationwide due to transmission bottlenecks.
• Infrastructure Deficit: India added only 8,830 circuit kilometres (ckm) of transmission lines in FY2025, reflecting a 42% shortfall against the 15,253 ckm target.
• Utilization Mismatch: Analysis reveals that 71% of the country’s interstate corridors operate at less than 30% utilization, directly linking low actual power flows to capacity hoarding and PPA delays.

Proposed Pathways for Stalled Renewable Projects

To clear the backlog of projects holding connectivity without signed Power Purchase Agreements (PPAs), the CERC has proposed three relief pathways. These measures are designed to either push projects toward commissioning or vacate capacity for active developers.

Technical Methodology for Utilization Assessment

GRID India’s draft procedure introduces a standardized methodology to be executed by Regional Load Despatch Centres (RLDCs) to calculate effective usage on a block-wise basis.

• Solar and Non-Solar Hour Split: Aligning with the GNA third amendment, the procedure utilizes a flexible allocation model. This allows for the assessment of capacity during specific solar and non-solar hours, ensuring transmission access is unlocked during periods when it would otherwise remain idle.
• Calculation and Reporting: Utilization is determined by comparing scheduled power against the effective quantum of granted connectivity. RLDCs will generate a “Time Duration Curve” for each quarter, providing a visual percentage of utilization for every time block.
• Exclusion Criteria: To avoid “distortion in calculations,” the following conditions will not be counted as underutilization:
  • Transmission constraints and grid security measures.
  • Reductions triggered by Ancillary Services (DOWN).
  • Force majeure events.

Implementation Framework and Auctioning Mechanism

Capacity vacated through surrender or revocation will be managed by the Central Transmission Utility of India Limited (CTUIL) via a structured reallocation and financial compliance framework.

• Reallocation and Consumer Benefit: Surrendered capacity will first be offered to existing projects in the local cluster. Remaining capacity will be auctioned with a proposed base price of ₹3 lakh/MW. Crucially, the revenue generated from these auctions is earmarked to reduce transmission charges for consumers.
• Financial Compliance and Land-BG: Entities must submit unconditional bank guarantees (Conn-BG1, BG2, BG3, and Land-BG). Grantees opting for the Land-BG route are required to submit formal land documents for at least 50% of the required project area at a specified later stage.
• Revocation Policy: Connectivity will be revoked and bank guarantees encashed if transmission charges remain unpaid for more than three months.
• Source Flexibility: Grantees are permitted a one-time change in the renewable energy source within an 18-month window from the in-principle grant or 18 months before the firm start date, though conversion to or from ESS remains restricted.

Stakeholder Impact and Timeline

The proposed rules affect renewable energy developers, ISTS customers, distribution licensees, and bulk consumers. The roadmap for finalization follows these strictly defined deadlines:

• CERC Proposal (Relief Mechanisms): Initial comments were due by May 15, 2026, with a final suggestion window closing on May 21, 2026.
• GRID India Draft Rules (Technical Assessment): Objections and feedback regarding the utilization calculation procedures must be submitted by June 7, 2026.

These coordinated actions by the Ministry of Power, CERC, and GRID India represent a pivotal shift toward performance-based grid management, essential for reaching India’s target of 500 GW of non-fossil capacity by 2030.