Ministry of Power Allows Intra-State Grid Connectivity for ISTS RE Projects
The Ministry of Power has allowed ISTS-tendered renewable energy projects to connect to intra-state transmission networks when supplying power to procurers within the same state, accepting representation from the National Solar Energy Federation of India seeking the Ministry's approval on the matter.
November 12, 2026. By Mrinmoy Dey
The decision was communicated through an order dated November 10, 2026, issued by the Ministry’s New and Renewable Energy (NRE) Section, following representations from the National Solar Energy Federation of India (NSEFI).
NSEFI had requested the Ministry to allow renewable energy projects tendered by Renewable Energy Implementing Agencies (REIAs) on an ISTS-connected basis to connect directly to the intra-state transmission network when both the generation facility and the purchasing distribution company (DISCOM) or entity are located within the same state.
Examining the proposal, the Ministry observed that connecting renewable energy projects directly to the intra-state grid for intra-state power supply generally reduces overall transmission costs and provides financial and operational benefits to power procurers.
However, such arrangements will require prior approval from the respective State Electricity Regulatory Commission (SERC) or Joint Electricity Regulatory Commission (JERC). The Power Purchase Agreements (PPAs) or Power Sale Agreements (PSAs) covering procurement through InSTS-connected projects must obtain the approval of the relevant regulatory commission.
The Ministry has also directed REIAs to incorporate suitable enabling provisions in future bidding documents to facilitate InSTS connectivity wherever the renewable energy generation facility and power procurer are located within the same state.
The move is expected to provide greater flexibility in transmission connectivity for ISTS-tendered renewable energy projects while helping optimise transmission costs for intra-state power procurement.
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