Govt extends transmission charge waiver for solar and wind projects

To encourage renewable power projects, the government has allowed solar and wind-based generation plants to avail inter-state transmission (ISTS) charge waivers for units to be commissioned within June 30, 2025. The waiver was initially available for solar and wind projects scheduled for installation within March 21, 2022, and in August 2020, the benefit was extended till June 2023.

The move is seen to help about 50,890 MW of RE projects that are currently under various stages of implementation. At present, the current installed RE capacity in India is 95,660 MW, including 41,090 MW of solar and 39,440 MW of wind power plants.

Through its latest order on Monday, the Union power ministry said the “waiver of ISTS charges has also been allowed for hydro pumped storage plant (PSP) and battery energy storage system (BESS) projects to be commissioned up to June 30, 2025”. These projects will benefit from the waiver only if at least 70% of the electricity used by these systems are supplied from wind or solar power plants.

However, ISTS transmission charges shall be levied gradually for PSP and BESS projects, rising 25% incrementally every three years to reach 100% from the twelfth year onwards.

The government clarified that state-run transmission systems located in an intervening state, which is used to ferry inter-state renewable energy-based electricity, will also have to offer transmission charge waiver to the buyers of green energy.

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