CERC Amends GNA Rules, Eases Connectivity and Withdrawal Provisions
The Central Electricity Regulatory Commission has amended the 2022 GNA Regulations to ease connectivity withdrawal, enable non-solar-hour access for renewable energy and storage projects, permit dual connectivity and facilitate the transfer of connectivity and GNA.
November 13, 2026. By Mrinmoy Dey
Notified on November 11, 2026, the Fourth Amendment also relaxes land and financial closure requirements, facilitates conversion between connectivity routes, allows dual connectivity for drawal entities and revises timelines for releasing connectivity bank guarantees (Conn-BGs).
Under the newly introduced Regulation 3.10, connectivity grantees can withdraw their entire connectivity quantum under specified circumstances, although partial withdrawal will not be permitted. Entities granted final connectivity can seek withdrawal if the period between the intimation of the in-principle grant and final grant is at least two years, or if the likely start dates of connectivity indicated in the two grants differ by two years or more.
The amendment introduces Regulation 4.7, allowing renewable energy generating stations (REGS) and energy storage systems (ESS) with an installed capacity of at least 50 MW to seek non-solar-hour connectivity at eligible substations beyond those specified under Regulation 4.5(a). The minimum capacity can be met individually or through aggregation by a Lead Generator or Lead ESS. CTUIL will publish and update a monthly list of eligible substations and available margins.
The amendment also allows applicants seeking full-day connectivity to convert their applications into solar-hour or non-solar-hour access applications. The reverse conversion is also permitted. ESS seeking connectivity alongside renewable energy projects must have a minimum energy capacity of twice their power capacity in MW, or as notified by the Authority. ESS failing to meet this requirement will not receive injection scheduling rights under GNA during non-solar hours.
CERC has also relaxed land documentation requirements by permitting sub-lease documents to establish land-use rights between parent companies and subsidiaries or between subsidiaries of the same parent company. Sub-leasing of government land will also be permitted where government policy allows it.
For ESS, excluding pumped storage plants, seeking connectivity through the Land BG route, the prescribed bank guarantee has been fixed at INR 5 lakh/MW. Connectivity grantees under the PPA route must submit outstanding land documents within 60 days of the effective date of GNA. Renewable energy generating stations, ESS (excluding pumped storage plants) and renewable power park developers must submit financial closure documents within 30 days. These may include loan sanction letters, proof of first loan disbursal or board resolutions confirming internal funding for the entire project cost. Entities that have achieved commercial operation of their full connectivity capacity by the applicable deadline are exempt.
The amendment permits a second change of energy source against a fee of INR 20,000/MW, calculated on the gross change in source capacity, or INR 10 lakh per application, whichever is higher. Where the second source change also involves a second change of land parcels, the fee increases to INR 25,000/MW or INR 10 lakh per application, whichever is higher.
Entities holding connectivity under the Land or Land BG route can now convert part or all of their capacity into the Letter of Award (LoA) or PPA route after securing an eligible PPA. Multiple connectivity applications granted at the same terminal bay or substation can also be consolidated into a single PPA-route application. If the remaining capacity under the Land or Land BG route falls below 50 MW after conversion, it will be treated as relinquished, and the corresponding Conn-BG3 and Land BG will be returned.
Under Regulation 17.5, drawal entities connected to intra-state transmission or distribution systems can seek direct ISTS connectivity for part or all of their drawal capacity, subject to a minimum of 50 MW for partial connectivity. They must obtain consent from the concerned State Transmission Utility and distribution licensee. Similarly, entities connected directly to ISTS can seek connectivity to intra-state transmission or distribution systems for part or all of their GNA capacity, subject to state regulations and technical feasibility.
CERC has also introduced provisions for transferring connectivity and GNA following changes in ownership. Connectivity associated with a generating station or ESS that has achieved commercial operation can be transferred to the acquiring entity, with corresponding changes to the Connectivity Agreement and substitution of applicable bank guarantees. Under Regulation 23A, GNA granted for drawal against an identified load can be transferred to the entity acquiring that load, provided the GNA has become effective. Similarly, GNA associated with a generating station or ESS can be transferred after commercial operation and effectiveness of GNA, subject to clearance of outstanding dues and substitution of Conn-BGs.
The amendment also introduces a one-time GNA charge of INR 1 lakh/MW, payable within 15 days of the effective date of GNA by entities covered under the relevant provisions. Non-payment can trigger encashment of available connectivity bank guarantees. Entities without subsisting Conn-BGs will be barred from undertaking transactions with the Grid until payment. The proceeds will be used to reduce monthly transmission charges under the Sharing Regulations.
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