RERC Clears New Intra-State Grid Connectivity Rules for Rajasthan

The Rajasthan Electricity Regulatory Commission (RERC) has now approved a new regulatory framework, bringing significant changes to how power generators and bulk consumers connect to the state grid. The new regulations are titled "Procedure for Grant of Connectivity to the Intra-State Transmission System (InSTS)". 

As per the suo motu order issued by the state power regulator, this will come into effect from February 1, 2026, replacing the existing connectivity procedures and aiming to streamline grid access while curbing speculative capacity booking.

Scope and Applicability

The new procedure will apply to all connectivity applications at 33 kV and above, covering state and central generating companies, Independent Power Producers (IPPs), renewable energy (RE) projects, and Energy Storage Systems (ESS). The Rajasthan Rajya Vidyut Prasaran Nigam (RVPN) has been designated as the Nodal Agency for processing applications and granting connectivity.

Fees, Charges and Financial Guarantees

Under the approved framework, applicants will be required to pay non-refundable processing fees ranging from ₹1 lakh to ₹9 lakh, depending on project capacity and applicant category. For renewable energy projects, grid connectivity charges have been fixed at ₹2.5 lakh per MW, in line with the 2020 regulations. Non-renewable applicants will be charged the actual cost of the transmission bay developed for connectivity.

Applicants must also submit bank guarantees within 30 days of final approval to ensure timely project execution. The bank guarantee amount varies by voltage level, going up to ₹1,287.5 crore for 400 kV connections.

Timelines and Compliance Measures

Emphasising procedural discipline, the commission has mandated strict timelines. For generating plants established after August 21, 2025, granted connectivity must be utilised within two years, failing which the approval will be cancelled. The commission also reiterated that grid connectivity will be non-transferable, restricting its use strictly to the original applicant.

To improve utilisation of transmission assets, the procedure allows sharing of dedicated transmission lines with other applicants, subject to approval from the State Transmission Utility (STU).

Stakeholder Consultations and Key Decisions

The final regulations were shaped through public consultations involving 14 stakeholders, including Tata Power, Adani Power and the National Solar Energy Federation of India.

RERC rejected a proposal to impose a 12 per cent annual penalty for relinquishing connectivity capacity, stating that such provisions are already addressed under existing Open Access Regulations. It also clarified that renewable energy projects with unresolved legacy issues—such as non-compliance with telemetry or reactive power norms—will not be granted new connectivity until these issues are rectified.

The commission further declined to incorporate specific Operation and Maintenance (O&M) clauses in the procedure, noting that comprehensive guidelines have already been issued by the Central Electricity Authority (CEA).

Implementation Timeline

RVPN has been directed to publish the approved procedure on its website within seven days of the order. Existing users who were connected prior to the new regulations but have not executed a Connection Agreement will be required to do so within one year from the February 2026 effective date.