Govt extends transmission charge waiver for solar and wind projects

Nonetheless, ISTS transmission fees shall be levied regularly for PSP and BESS initiatives, rising 25% incrementally each three years to succeed in 100% from the twelfth yr onwards.

To encourage renewable energy initiatives, the federal government has allowed photo voltaic and wind-based technology vegetation to avail inter-state transmission (ISTS) cost waivers for models to be commissioned inside June 30, 2025. The waiver was initially obtainable for photo voltaic and wind initiatives scheduled for set up inside March 21, 2022, and in August 2020, the profit was prolonged until June 2023.

The transfer is seen to assist about 50,890 MW of RE initiatives which can be at present beneath numerous phases of implementation. At current, the present put in RE capability in India is 95,660 MW, together with 41,090 MW of photo voltaic and 39,440 MW of wind energy vegetation.

By its newest order on Monday, the Union energy ministry mentioned the “waiver of ISTS fees has additionally been allowed for hydro pumped storage plant (PSP) and battery vitality storage system (BESS) initiatives to be commissioned as much as June 30, 2025”. These initiatives will profit from the waiver provided that no less than 70% of the electrical energy utilized by these programs are provided from wind or solar energy vegetation.

Nonetheless, ISTS transmission fees shall be levied regularly for PSP and BESS initiatives, rising 25% incrementally each three years to succeed in 100% from the twelfth yr onwards.

The federal government clarified that state-run transmission programs situated in an intervening state, which is used to ferry inter-state renewable energy-based electrical energy, may also have to supply transmission cost waiver to the patrons of inexperienced vitality. “The transmission fees of such intra-state transmission system shall be reimbursed by the central transmission utility,” the Union energy ministry mentioned. Transmission fees add about Rs 0.20-0.50 per unit to each unit of thermal energy. ISTS cost waivers are recovered by transmission utilities by greater tariffs on standard electrical energy paid by state-run energy distribution corporations.

To encourage RE buying and selling on the facility exchanges, ISTS fees have additionally been waived for buying and selling electrical energy provided from photo voltaic, wind, PSP and BESS initiatives in inexperienced time period forward market and inexperienced day-ahead marketplace for two years until June 30, 2023. The coverage of waiving this cost for RE was designed to make photo voltaic and wind extra engaging for cash-strapped discoms.