ISTS Waiver Extended By 2 Years For Solar, Wind Energy

“The Ministry of Power has issued an order today for the extension of the waiver of Inter-State Transmission system (ISTS) charges on the transmission of electricity generated from solar and wind sources for projects to be commissioned up to 30th June 2025,”. With this statement, the Ministry of Power (MoP) has confirmed a widely expected waiver that has been considered a key part of the incentives for adding renewable energy capacity in India.

With the waiver available till June 30, 2025 from its earlier deadline of June 30, 2023, it is also a tacit  acknowledgement from the ministry of the hit RE targets have taken from multiple issues, be it Covid, legal disputes in states, land availability and other cancellations.

In a concession to emerging options and technologies, the ministry has extended the waiver to Hydro Pumped Storage Plant (PSP) and Battery Energy Storage System (BESS) projects also. Both of these options are considered key to Renewable plus Storage projects coming up, that will seek to provide round the clock power on demand, besides balancing the grid, as thermal power is phased out and replaced by RE sources.

The waiver will also apply to renewable power traded in the Green Term Ahead Market (GTAM) and Green Day Ahead Market (GDAM) for two years i.e. till 30th June 2023. Helping build a stronger trading market too.

The volume of renewable energy trade in the power exchange is expected to increase post this while creating an opportunity to minimise the curtailment of RE by providing developers the option to sell power in the power exchanges and get instantly paid the same day.

The ministry also clarified that an intra-state transmission system which is used for the conveyance of electricity across the territory of an intervening State as well as conveyance within the state which is incidental to such inter-state transmission of electricity, shall be included for sharing of inter-state transmission charges. Or the waiver of charges, in this case.

Intrastate charges would be reimbursed by the CTU as is being done for the ISTS system. Concerned Regional Power Committee may through studies identify such lines.