Power Industry Body Seeks Gradual Rollback Of Transmission Waiver To Support Renewable Energy Goals

New Delhi, Jun 24 (KNN) The Electric Power Transmission Association (EPTA) has called on the government to reconsider the planned withdrawal of the Inter-State Transmission System (ISTS) waiver, proposing alternative mechanisms to protect renewable energy developers from external delays as India pursues its target of 500 GW renewable capacity by 2030.

The ISTS waiver, implemented in 2016 and extended once previously, is scheduled for phased withdrawal beginning July 1, 2025.

Under current plans, the waiver benefit would be reduced by 25 percent annually, a timeline EPTA argues could adversely affect ongoing renewable projects and investment flows while increasing electricity costs for commercial and industrial consumers who already face elevated tariffs globally.

EPTA has proposed reducing the annual withdrawal rate to 10 percent from the planned 25 percent, arguing that a measured approach would minimize cost increases and maintain the competitiveness of green power.

The association has also requested milestone-based eligibility criteria and additional time allowances for projects delayed by factors beyond developer control.

"The government has been very supportive of the sector and has introduced number of policy measures, particularly in the last six months. We are very hopeful that the government will again take a more pragmatic view on the ISTS waiver issue," stated G.P. Upadhyaya, Director General, EPTA.

Rather than seeking blanket extensions, EPTA has proposed that projects meeting specific development milestones receive consideration for waiver benefits.

These milestones include securing financial closure, acquiring at least 50 percent of required land, and placing orders for key equipment. Such projects would receive a six to nine-month window to access ISTS waiver benefits under the proposal.

The association's recommendations align with existing milestone-linked waivers already granted to pumped hydro and battery storage projects, which have been extended until June 2028.

EPTA emphasized that projects with substantial progress but facing delays due to uncontrollable circumstances should receive limited additional time to qualify for waiver benefits.

EPTA highlighted the significant investment requirements ahead, projecting over USD 100 billion in transmission investment over the next eight to ten years as the sector assumes a central role in India's renewable energy transition.

The association has also advocated for expanding domestic manufacturing capabilities for 765 kV high-voltage direct current equipment under the Production Linked Incentive scheme, citing supply constraints from European and Chinese manufacturers.

The industry body referenced several infrastructure initiatives supporting India's renewable expansion, including a planned offshore transmission line connecting the Andaman Islands to Paradip in Odisha under the One Sun, One World, One Grid framework.

This project aims to link the islands' demand centres with renewable power from the mainland.

EPTA also noted India's strengthening grid infrastructure and its potential to enable cross-border connections, including possible future links from the Andaman Islands to Singapore and from Gujarat to the United Arab Emirates, positioning the country as a regional renewable energy hub.

(KNN Bureau)