The Ministry of Power has extended the cut-off date for solar and wind energy projects eligible for a waiver on inter-state transmission system (ISTS) charges and losses on electricity transmission.
As per the revision, charges will be waived for projects commissioned before June 30, 2023 as against the earlier cut-off date of December 2022.
The waiver will be applicable for 25 years from the date of commissioning of power plants, with or without storage, if they meet the criteria set by the government for this purpose. This includes power plants using solar and wind sources of energy, including solar-wind hybrid power plants commissioned until the cut-off date for sale to entities having a renewable purchase obligation (RPO).
This is irrespective of whether this power is within RPO or not, provided that in case of distribution licensees, the power has been procured competitively under the guidelines issued by the central government.
According to Mercom, in November 2019, the Ministry of Power had announced that the ISTS charges and losses on the transmission of electricity generated from solar and wind projects would be waived off as long as they are commissioned before December 31, 2022. This deadline was an extension to the previously-announced March 31, 2022.
Any system for the conveyance of electricity by means of a main transmission line from the territory of one state to another state is referred to an interstate transmission system (ISTS).
In June this year, Union power minister, R.K. Singh, suggested the government was likely to consider extending the ISTS charges for renewable projects by at least six months.
The National Solar Energy Federation of India (NSEFI) had also asked the Ministry of New and Renewable Energy to extend the waiver of ISTS charges and losses for renewable energy projects, as per a Mercom report.
The objective behind the waiver of inter-state transmission charges and losses was to encourage wind and solar energy capacity in the country by reducing the cost of generation.
