ISTS Charges Waived for Solar and Wind Projects Commissioned by October 1, 2023

The deadline was extended from the earlier June 30, 2023, to October 1, 2023


The Central Electricity Regulatory Commission (CERC) has extended the solar and wind projects commissioning deadline to be eligible for the waiver of interstate transmission system (ISTS) charges to October 1, 2023.

Earlier, the Ministry of Power waived ISTS charges on all solar and wind projects commissioned before June 30, 2023.

The ISTS charges waiver will be applicable for 25 years from the commissioning date for the transmission and sale to entities with renewable purchase obligations (RPO).

CERC noted that though the CERC (Sharing of ISTS Charges and Losses) (First Amendment) Regulations, 2022, had been notified, the provisions of the said amendment have not come into force.

Considering this, until the First Amendment Regulations come into force, the Commission has extended the timeline until October 1, 2023, or until regulations come into effect, whichever is earlier.

In March this year, the central regulator amended the CERC (Sharing of Interstate Transmission Charges and Losses) Regulations, 2020, waiving ISTS charges for renewable energy generating stations and pumped hydroelectric stations beginning commercial operations by June 30, 2025.

Battery storage systems that are charged using energy from renewable energy generating systems and renewable hybrid generating systems, which start operating before June 30, 2025, will also be eligible for a waiver of transmission charges for 12 years.

The Ministry of Power had first announced the ISTS charge waiver on the transmission of electricity generated from solar and wind projects in 2019. The ministry later amended the deadlines further to encourage the development of such projects across different states.

The Ministry of Power has waived ISTS charges for offshore wind, green hydrogen, and green ammonia projects as a significant step to facilitate the implementation and expansion of these projects.

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