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Electricity Generating Stations or EGSs are granted connectivity to the electricity transmitting grid by governmental authorities following regulatory norms so the process is safe for the end user.

1. In India, the regulatory framework has been set up by the Central Electricity Regulation Commission or ‘CERC’. This regulatory framework was very complicated, licenses were time-bound, applications were too detailed, and the scope for the EGSs was very limited in terms of growth and investments.
2. The framework, also called the Open-Access to the Grid framework, came out in 2009. However, the CERC has revamped it into the General Network Access framework. The new and improved framework aims to simplify the process for existing players in the market and make it easy for newer players to access the grid.
3. Under the old framework, licenses were time bound and would expire after the end of the stipulated period. Thus, a generating station would have to start the whole process again after the end of every license. Now, these licenses are not time bound and remain valid until the Generating Station itself relinquishes it.
4. Furthermore, the consent given to an EGS to transmit electricity would only extend to the parent company of that EGS or its wholly owned subsidiary. However, now, the consent extends to subsidiary companies as well. This makes investing in the sector much cheaper with fewer compliance requirements.
5. When an EGS was employing the use of renewable energy, it was only allowed to be connected if it produced electricity between 5MW and 50MW, under the new rules, the upper limit has been removed. Thus, such EGSs can scale their operations to produce more renewable energy.
6. The three-prong approach, which first simplifies the application process, second widens the scope of participating generating stations by inviting more players and warranting scalability to the existing ones, and thirdly significantly improves the process and scope of investment in the sector, are bound to be a welcome change for the stakeholders.
7. India has committed to a goal of producing 500 GW of energy from renewable sources by the year 2030; these reforms have liberalized a very important sector of the industry in which all human beings are equal stakeholders. Implications of this new framework are bound to also reflect in India’s rankings in the Ease of Doing Business index as well.