The Ministry of Power (MoP) has waived interstate transmission system (ISTS) charges and losses on all solar and wind projects commissioned before June 30, 2023.
This would apply to solar, wind, and hybrid projects with or without storage. The ISTS charges would be waived for 25 years from their date of commissioning for the transmission as well as sale to entities with renewable purchase obligations (RPO).
The waiver would apply to solar projects commissioned under the second phase of the Ministry of New and Renewable Energy’s (MNRE) Central Public Sector Undertaking (CPSU) Program and also for solar projects commissioned under SECI’s manufacturing-linked solar tender.
In November 2019, the Ministry of Power had announced that the ISTS charges and losses on transmission of electricity from solar and wind projects would be waived off as they are commissioned before March 31, 2022 which was extended till December 31,2022.
The objective behind the waiver of ISTS charges and losses was to encourage wind and solar energy capacity in the country by reducing the cost of generation, to achieve the country’s target of achieving 175 GW of renewable energy capacity by December 31, 2022.