KERC Draft GNA Regulations 2026: Karnataka's Network Access Goes Capacity-Based

On 4 June 2026, the Karnataka Electricity Regulatory Commission published the Draft KERC (Connectivity and General Network Access to the Intra-State Transmission System and State Distribution System) Regulations, 2026. If notified in their current form, these regulations will fundamentally restructure how renewable developers, C&I consumers, captive plants, and battery storage operators access Karnataka's electricity network.

This is not a tweak to the existing open access framework. It's a wholesale reimagining — replacing the transaction-based open access categories with a capacity-based General Network Access (GNA) model, mirroring at state level what CERC has already done at the inter-state level.

From transaction-based to capacity-based access

India's open access regime has historically been structured around identified transactions. A consumer applied for open access to procure specific power from a specific source under a specific agreement. Access was tied to the transaction — change the source or the contract, and you went through the application process again.

This worked when long-term PPAs and vertically integrated utilities dominated the market. It works less well today, when:

• Renewable energy generators often supply multiple consumers
• Group captive structures continue to evolve
• Storage and hybrid configurations create flexible flows
• Spot market and short-term transactions are increasingly important

The KERC draft regulations make a clean conceptual separation between two ideas:

• Connectivity — the physical connection between a generator, captive plant, RE park, ESS or consumer and the network
• General Network Access (GNA) — the right to inject or draw electricity from the system, up to a sanctioned capacity

This distinction mirrors international best practice and creates greater clarity about market participants' rights and obligations. Transmission planning can be done independently of specific commercial arrangements. And consumers gain flexibility — they can change their source or contractual arrangement without re-establishing their access right.

What the draft regulations introduce

The draft establishes a unified architecture with several major features:

1. General Network Access (GNA) — replaces traditional open access categories (LTOA, MTOA, STOA, GEOA) with a single capacity-based access right
2. Temporary GNA (T-GNA) — a short-term access mechanism for transactions that don't need permanent GNA, paralleling the CERC inter-state model
3. State Open Access Registry (SOAR) — a state-level electronic platform analogous to NOAR, managed by the SLDC
4. Recognition of Energy Storage Systems — standalone BESS and PSP plants get explicit recognition as eligible entities for connectivity and access
5. Renewable Power Park Developer (RPPD) framework — pooling stations and park developers covered as a distinct category
6. Mechanisms for more efficient corridor utilisation — pari-passu treatment between RE generators, queue management improvements

Eligibility — who qualifies for GNA

The draft prescribes separate eligibility criteria depending on whether connectivity is sought at the InSTS level (transmission) or the distribution level:

Connectivity — Transmission level (InSTS)

• Generating stations including RE projects with or without storage, with installed capacity of 5 MW and above
• Captive generating plants
• Standalone Energy Storage Systems (BESS/PSP)
• Renewable Power Park Developers

GNA — Transmission level (InSTS)

• Distribution licensees
• Trading licensees
• Bulk consumers
• Captive consumers connected to the InSTS
• Standalone Energy Storage Systems

GNA — Distribution level

• Consumers with contract demand or sanctioned load of 100 kW or above

The 100 kW threshold at the distribution level aligns with the Central Green Energy Open Access Rules and ensures continuity for mid-sized C&I consumers. The new architecture brings them into a unified GNA regime instead of fragmenting them across multiple open access categories.

Banking, standby, and relinquishment

The commercial conditions in the draft set out clear, predictable terms:

• Monthly banking of renewable energy permitted until 31 March 2030. Banking charges proposed at 8% of banked energy, payable in kind. Unutilised banked energy at month-end cannot be carried forward — but it may remain eligible for RECs.
• Standby charges at 125% of normal energy charges for open access consumers availing standby power from the licensee — unless advance notice is provided one day in advance, in which case the premium may be avoided.
• Connectivity relinquishment permitted with 30 days' notice.
• GNA relinquishment requires a one-year notice period along with relinquishment charges that vary depending on the duration of network usage. The longer you've used the network under GNA, the lower the relinquishment liability.

Timing and effective dates

KERC has invited objections, suggestions, and comments from stakeholders within 30 days from the date of publication. The proposed effective date is 1 October 2026.

On notification, the regulations will repeal the KERC (Terms and Conditions for Open Access) Regulations, 2025 — which itself replaced the 2022 GEOA framework (struck down by the Karnataka High Court for not aligning with the National Electricity Policy). The STU and distribution licensees, acting as nodal agencies, must develop detailed operational procedures within 60 days of issuance of the final regulations.

What Karnataka C&I consumers should do now

Karnataka has one of India's most concentrated industrial bases — Bengaluru's IT clusters, manufacturing in Tumakuru and Bidadi, the automotive supply chain in Bengaluru-Chennai corridor, and large textile and food-processing operations across the state. For these consumers, the GNA regulations will reshape procurement strategy.

1. Map your current open access exposure against GNA categories. If you're operating under STOA, MTOA, LTOA, or GEOA today, work out where you'd sit under the new GNA framework. Most existing arrangements will likely migrate to GNA, but the transition mechanics matter.
2. Evaluate the one-year GNA relinquishment notice in your planning. Once notified, GNA becomes a long-dated commitment. If your business has variable load or uncertain growth, model the relinquishment scenarios carefully before applying for headline GNA capacity.
3. Submit objections during the 30-day window. The capacity allocation methodology, the relinquishment charge formula, and the commercial conditions are still drafts. Stakeholder input shapes the final framework. C&I associations and individual large consumers should engage now.
4. Plan storage-enabled offtake strategies. The explicit recognition of standalone BESS as an eligible entity for connectivity and GNA opens new procurement structures. Consumers with high evening peaks (textile, IT campuses) should evaluate solar+BESS configurations against the new regulatory backdrop.
5. Re-cost your tariff modelling. The 8% banking in kind, 125% standby provision, and revised charges schedule will change your landed cost calculations. Run your load profile against the proposed terms before signing new long-term PPAs.

The KERC Draft Regulations 2026 are part of a broader pan-India trajectory — Karnataka joins a growing list of states moving toward capacity-based GNA frameworks aligned with the CERC inter-state model. C&I consumers who treat this as an opportunity to restructure procurement architecture, rather than a compliance burden, will be best positioned when the regulations come into force on 1 October 2026.