APERC Issues Clarification on Intrastate Grid Connectivity Transfer Rules in Andhra Pradesh

The APERC Regulatory Clarification

On June 18, 2026, the Andhra Pradesh Electricity Regulatory Commission (APERC) issued a formal clarification regarding the transfer and reallocation of grid connectivity rights within the state’s transmission network. This regulatory intervention, prompted by queries from the Transmission Corporation of Andhra Pradesh (APTRANSCO), establishes a rigorous framework for evaluating requests to reuse or transfer existing connectivity for renewable energy projects. The Commission’s directive aims to prevent the unregulated commercialization of state transmission assets and ensure that connectivity remains tied to specific project merits. This clarification serves as a regulatory baseline as the state nears the June 19, 2026, deadline for stakeholder comments on the “Draft Connectivity Agreement” originally submitted by APTRANSCO on March 16, 2026.

Core Ruling: Connectivity as a Project-Specific Right

Key Takeaway: The Commission has ruled that connectivity granted for the Intrastate Transmission System (InSTS) is a project-specific right. It is not an independently tradable or transferable asset and cannot be commercialized by developers outside of established regulatory oversight.

The Commission further clarified that the existence of a common renewable energy cluster or the shared use of evacuation infrastructure does not grant automatic connectivity rights to all entities within that cluster. Each project must secure its own allocation based on individual technical and regulatory standing, regardless of whether it utilizes shared physical infrastructure.

Jurisdictional Boundaries: InSTS vs. CERC Regulations

The APERC has delineated the jurisdictional limits regarding the applicability of central guidelines to the state grid:

• Primary Authority (State): Regulations issued by the Central Electricity Regulatory Commission (CERC) for the Inter-State Transmission System (ISTS) do not automatically apply to the Andhra Pradesh InSTS.
• Supplemental Guidance (Central): APTRANSCO may only follow the underlying principles of CERC regulations when specific state-level provisions are absent and provided such principles do not conflict with the existing Andhra Pradesh regulatory framework.

Technical Criteria and Evaluation Framework

APTRANSCO is mandated to conduct a case-by-case examination of all connectivity transfer or reallocation proposals. The evaluation process must adhere to the following technical and administrative requirements:

• Absence of Capacity Thresholds: The 50 MW minimum capacity threshold established in the CERC framework is not applicable to the Andhra Pradesh InSTS. APTRANSCO must examine all transfer requests regardless of the project’s installed capacity.
• Individual Merit Assessment: Each proposal requires an independent review of the project’s specific circumstances rather than relying on broad categorizations.
• Technical Feasibility Assessment: A mandatory technical study is required for every request to ensure that the proposed changes do not adversely impact the stability or reliability of the intrastate grid.
• Mandatory Consent: A formal, explicit consent document from the original connectivity grantee is an absolute prerequisite for any transfer or reallocation of rights.

Facilitating Operational Stability for Projects under PPAs

The Commission has introduced a distinct approach for projects that have achieved commercial operation and are currently supplying power under valid Power Purchase Agreements (PPAs). To ensure grid stability and the fulfillment of existing contractual obligations, APTRANSCO may consider connectivity transfers for these operational assets even in cases where the projects are not subsidiaries or shareholders of the original developer. This facilitation of established assets is subject to the formal consent of the original connectivity grantee.

Implementation and Developer Requirements

While the APERC order establishes a formal administrative route for restructuring or infrastructure optimization, it reinforces that grid connectivity remains subject to strict regulatory scrutiny to prevent the trading of rights.

To comply with this framework, developers and stakeholders must ensure the following before submitting a request to APTRANSCO:

1. Formal Documentation: Provision of an explicit consent document from the original connectivity holder.
2. Technical Data Submission: Submission of comprehensive project data to support a mandatory technical feasibility and individual merit assessment.
3. Administrative Application: Submission of a formal request to APTRANSCO detailing the specific nature of the proposed project restructuring or infrastructure utilization.