APERC Clarifies Intra-State Grid Connectivity Transfer Rules

26 Jun 2026 CW Team

The directions set out the regulatory approach for renewable energy developers and other power sector stakeholders and are expected to bring greater clarity to processes for connectivity transfers.

APERC affirmed that grid connectivity granted to a project is project-specific and cannot be treated as a freely tradable or transferable asset. Being part of the same renewable cluster or sharing common evacuation infrastructure does not confer rights to use connectivity granted to an existing project. Any request for transfer must be examined individually by APTRANSCO, which should assess technical feasibility and secure formal consent from the original connectivity holder.

The Commission clarified the distinction between central and state regulatory jurisdictions, noting that Central Electricity Regulatory Commission rules for the Inter-State Transmission System do not automatically apply to intra-state networks. Where state regulations do not provide specific guidance, APTRANSCO may refer to central principles provided they are consistent with the state framework. The order also addressed capacity thresholds and noted that a minimum 50 megawatt (MW) requirement under central rules for interstate transfers does not apply to the state system.

APERC directed APTRANSCO to examine genuine transfer requests regardless of project size, a change expected to benefit smaller renewable developers seeking connectivity. For operational projects already in commercial operation and supplying power under valid power purchase agreements, APTRANSCO may consider transfers to a different entity even where the new entity is not a subsidiary or shareholder of the original developer, subject to the original holder’s consent. The clarifications are intended to prevent misuse of connectivity approvals while allowing legitimate restructuring and to support orderly development and efficient utilisation of the transmission infrastructure.

The Andhra Pradesh Electricity Regulatory Commission (APERC) issued clarifications on transfer of grid connectivity within the state’s Intra-State Transmission System after queries from the Andhra Pradesh Transmission Corporation (APTRANSCO). The directions set out the regulatory approach for renewable energy developers and other power sector stakeholders and are expected to bring greater clarity to processes for connectivity transfers. APERC affirmed that grid connectivity granted to a project is project-specific and cannot be treated as a freely tradable or transferable asset. Being part of the same renewable cluster or sharing common evacuation infrastructure does not confer rights to use connectivity granted to an existing project. Any request for transfer must be examined individually by APTRANSCO, which should assess technical feasibility and secure formal consent from the original connectivity holder. The Commission clarified the distinction between central and state regulatory jurisdictions, noting that Central Electricity Regulatory Commission rules for the Inter-State Transmission System do not automatically apply to intra-state networks. Where state regulations do not provide specific guidance, APTRANSCO may refer to central principles provided they are consistent with the state framework. The order also addressed capacity thresholds and noted that a minimum 50 megawatt (MW) requirement under central rules for interstate transfers does not apply to the state system. APERC directed APTRANSCO to examine genuine transfer requests regardless of project size, a change expected to benefit smaller renewable developers seeking connectivity. For operational projects already in commercial operation and supplying power under valid power purchase agreements, APTRANSCO may consider transfers to a different entity even where the new entity is not a subsidiary or shareholder of the original developer, subject to the original holder’s consent. The clarifications are intended to prevent misuse of connectivity approvals while allowing legitimate restructuring and to support orderly development and efficient utilisation of the transmission infrastructure.

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