Grid connectivity
Also called: Transmission connectivity · Topic: Infrastructure: Transport, Communications and Energy · NCERT: Beyond NCERT
Meaning
Grid connectivity (also called transmission connectivity) is the formal right of a power project to plug into the transmission grid. The transmission grid is the network of high-voltage lines that carries power from plants to cities. The grid can carry only a fixed amount of power at each point, so connectivity works like a reserved seat. Once a project holds a slot, no other project can use that capacity. If the project stalls, for example because no discom has signed a power purchase agreement (PPA) to buy its power, the slot sits unused. Ready projects that do have buyers may then find no room on the grid. This makes connectivity a hidden bottleneck in India's push for renewable energy.
Example
A solar developer in Rajasthan wins an auction and reserves grid connectivity. The state discom (the electricity distribution company) then delays signing the PPA. While the developer waits, the reserved slot blocks a nearby wind project that already has a buyer. To stop this, the regulator CERC has proposed a "use it or lose it" rule. Under it, connectivity would be treated as given up if no PPA is signed in time, and the freed capacity would be auctioned to other projects.
Don't confuse with
- Open access: this lets large consumers or generators use the transmission and distribution networks to buy or sell power from any supplier. They pay wheeling charges and a cross-subsidy surcharge. Connectivity is only the right to be physically connected to the grid. It does not decide who buys the power.
- Power purchase agreement (PPA): this is the sales contract with a buyer. Connectivity is the grid slot. A project needs both, and holding one does not guarantee the other.