Assam Introduces Draft Regulations 2025 For Intra-State Transmission Connectivity: Streamlining Power Integration And Reliability
Introduction
In January 2025, the Assam Electricity Regulatory Commission (AERC) released the Draft Regulations for the Grant of Connectivity to the Intra-State Transmission System (InSTS). [1]These regulations, set to take effect from April 1, 2025, are framed under the Electricity Act, 2003, and aim to establish a robust framework for planning, development, operation, and maintenance of Assam’s InSTS. The initiative aligns with the overarching goal of ensuring economic, secure, and efficient electricity transmission while maintaining healthy competition in the state’s electricity sector.
Explanation (Key Points)
- Scope and Applicability
- The regulations extend to the entire state of Assam and apply to applications for connectivity submitted after their commencement.
- It covers both injecting entities (like generating stations and energy storage systems) and drawee entities (like distribution licensees and consumers with significant energy requirements).
- Eligibility for Connectivity
- Injecting entities with a capacity of 25 MW or above can apply for connectivity. This includes renewable energy generating stations (REGS), standalone energy storage systems (ESS), and hybrid energy setups.
- Drawee entities such as distribution licensees, large consumers (15 MW or above), and transmission licensees are also eligible.
- Application Process
- Applications for connectivity must include detailed information, such as the geographical location, energy quantum, and supporting technical documents.
- A systematic timeline for application processing has been established. For example, minor deficiencies must be communicated to applicants within 30 days, and connectivity grant decisions are subject to specific timeframes based on network augmentation requirements.
- Bank Guarantees and Financial Mechanisms
- Applicants are required to submit bank guarantees (BGs) in three categories: Conn-BG1 for application security, Conn-BG2 for terminal bays, and Conn-BG3 for network augmentation costs.
- The BGs are designed to ensure commitment and address non-compliance, including forfeiture provisions in cases of application withdrawal or relinquishment.
- Monitoring and Compliance
- The nodal agency (State Transmission Utility or STU) will conduct regular monitoring of project implementation. Connectivity grantees must provide quarterly updates on their progress, while the STU will ensure adherence to timelines for transmission system augmentation.
- In cases of delay or failure to meet commitments, the STU is empowered to revoke connectivity or impose penalties.
- Flexibility and Provisions for Renewable Energy Integration
- Special provisions are made for renewable energy projects, allowing for partial or full utilization of connectivity by subsidiaries or associated entities.
- The regulations also permit multi-entity applications for shared connectivity infrastructure, which promotes cost optimization and collaboration.
- Termination and Relinquishment
- Connectivity grantees can relinquish their connectivity rights with prior notice. However, specific penalties and conditions apply based on the quantum and timing of the relinquishment.
Conclusion
The AERC’s Draft Regulations 2025 are a significant step toward modernizing Assam’s electricity infrastructure. By providing a transparent framework for connectivity to the InSTS, the state aims to enhance grid reliability, promote renewable energy integration, and facilitate efficient power distribution. The structured processes for application, monitoring, and compliance show the state’s commitment to addressing the evolving needs of its electricity sector while aligning with national energy goals. Once implemented, these regulations are expected to streamline intra-state transmission connectivity and encourage a sustainable, competitive, and resilient power ecosystem in Assam.
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