MoP Extends ISTS Charges Waiver for Solar & Wind Projects Until 2023

MoP has extended the waiver of ISTS charges and losses on the supply of power generated from solar and wind power projects until June 30, 2023.

The Ministry of Power (MoP) has notified that it has extended the waiver of inter-state transmission system (ISTS) charges and losses on the supply of power generated from solar and wind power projects until June 30, 2023.

In its notification, the Ministry added that no ISTS charges would be levied for 25 years from the date of commissioning of the power plants for the supply and sale to entities having renewable purchase obligations (RPO), irrespective of whether this power is within RPO or not, provided that in case of distribution licensees (Discoms), the power has been procured competitively under the guidelines issued by the Central Government.

The Ministry of Power in 2018 had issued an order for a waiver of ISTS charges and losses on the transmission of the electricity generated from solar and wind sources of energy. This Order had superseded the earlier orders issued in 2016 and 2017. Further, the MoP in its order dated November 2019, had extended the waiver date from date March 31, 2022, to December 31, 2022.

The MoP also added that the solar PV power plants commissioned under “MNRE’s Central Public Sector Undertaking (CPSU) Scheme Phase-II and the projects commissioned under SECI’s tender for manufacturing linked capacity scheme for sale to entities having RPO, irrespective of whether this power is within RPO or not will also be included under the order.

In June, Union Power Minister RK Singh has said that the power ministry (MoP) may consider extending beyond 2022 the waiver of Inter-state Transmission System (ISTS) charges for renewable energy projects.

Singh had said that his ministry “may consider extending the ISTS waiver for renewable energy projects by at least six months”, according to a statement issued by FICCI after a CEO’s interactive session with the minster. It is believed that industry bodies are pressing for the extension of at least one year beyond December 2022 in the wake of the COVID-19 pandemic.