Govt Provides ISTS Charge Waivers To Boost Renewable Energy Projects: MoS Naik

New Delhi, Mar 18 (KNN) Union Minister of State for New and Renewable Energy Shripad Yesso Naik in a written reply to a question in the Rajya Sabha on Tuesday said that the government has put in place regulatory and infrastructure measures to support renewable energy (RE) projects, including waivers on Inter-State Transmission System (ISTS) charges.

The minister said ISTS charges are governed by regulations issued by the Central Electricity Regulatory Commission (CERC), including amendments notified in June 2025. Grid connectivity procedures are defined under CERC’s connectivity and network access regulations.

The Central Transmission Utility (CTU) acts as the nodal agency for granting connectivity and General Network Access (GNA) to the ISTS.

Monitoring and Coordination Mechanism

Progress of renewable energy projects and associated transmission infrastructure is monitored through quarterly joint coordination meetings led by CTU, aimed at avoiding mismatches between generation and transmission readiness.

Additionally, project monitoring is undertaken by the Ministry of Power and the Central Electricity Authority (CEA). CTU has also been tasked with monthly monitoring of critical transmission elements in coordination with developers.

In cases of delays in transmission availability, interim arrangements are developed in consultation with CEA and other stakeholders to enable timely evacuation of power.

Key Government Initiatives

Naik highlighted several initiatives aimed at strengthening transmission infrastructure and facilitating renewable energy integration, including the implementation of the Green Energy Corridor scheme to evacuate power from renewable energy-rich regions, long-term transmission planning under the National Electricity Plan (Transmission) notified in October 2024, and the preparation of a roadmap for integrating over 500 GW of renewable energy capacity by 2030.

ISTS Charge Waivers for Renewable Projects

He noted that the government has provided ISTS charge waivers across multiple renewable and energy storage categories to encourage investment. 

These include a 100 per cent waiver for solar and wind projects commissioned by June 30, 2025, with a phased reduction thereafter for up to 25 years; full waivers for hydro pumped storage plants awarded by June 30, 2028, valid for 25 years; and full waivers for battery energy storage systems (BESS) with varying commissioning deadlines, typically up to June 2025 or June 2028, for up to 12 years. 

Large hydro projects exceeding 25 MW also receive a 100 per cent waiver if commissioned within specified timelines for 18 years, while green hydrogen and ammonia projects benefit from full waivers for projects commissioned by December 31, 2030, and offshore wind projects by December 31, 2032, each valid for 25 years. 

The waivers are structured to taper gradually over time, typically reducing by 25 per cent annually after the initial eligibility periods.

The minister also clarified that ISTS charges are borne by designated transmission customers and do not directly impact the cost of generation for renewable energy projects.

(KNN Bureau)