India’s ISTS-linked Green Open Access to Add 40 GW by 2030

26 Mar 2025 CW Team

ISTS-based renewable energy projects enable inter-state power transfer, helping utilities balance supply and demand gaps faced by local distribution companies (DISCOMs). Since 2020, these projects have contributed significantly to the issuance of utility-scale renewable energy tenders, accounting for nearly one-fourth of the total tendered capacity in India.

The expansion of green OA in the ISTS network has been driven by regulatory and policy developments. Since 2022, factors such as waivers on ISTS transmission charges and the implementation of General Network Access (GNA) regulations have supported market growth. Commercial and industrial (C&I) consumers seeking sustainable energy solutions have benefited from these developments. By leveraging ISTS connectivity, businesses with manufacturing units across multiple states can procure renewable energy through a single Power Purchase Agreement (PPA) with developers.

Financial considerations play a crucial role in the adoption of ISTS-based green OA. After accounting for ISTS waivers and exemptions, the net open access charges for renewable energy projects in the top ten C&I states in India range between Rs 2 to 3.5 per unit. These waivers have been instrumental in reducing costs and promoting green OA adoption.

However, these waivers will gradually decline, decreasing by 25% annually from July 2025 to June 2028. After this period, no waivers will be applicable to ISTS projects, except those related to offshore wind energy and green hydrogen production. This phased reduction in waivers may impact future ISTS-based green OA growth and investment trends.

News source: PV Magazine

The Interstate Transmission System (ISTS) is expected to facilitate approximately 40 GW of green open access (OA) capacity by 2030, provided that transmission challenges are addressed and no significant barriers arise. This capacity would constitute nearly one-third of India's projected green OA capacity by the end of the decade. ISTS-based renewable energy projects enable inter-state power transfer, helping utilities balance supply and demand gaps faced by local distribution companies (DISCOMs). Since 2020, these projects have contributed significantly to the issuance of utility-scale renewable energy tenders, accounting for nearly one-fourth of the total tendered capacity in India. The expansion of green OA in the ISTS network has been driven by regulatory and policy developments. Since 2022, factors such as waivers on ISTS transmission charges and the implementation of General Network Access (GNA) regulations have supported market growth. Commercial and industrial (C&I) consumers seeking sustainable energy solutions have benefited from these developments. By leveraging ISTS connectivity, businesses with manufacturing units across multiple states can procure renewable energy through a single Power Purchase Agreement (PPA) with developers. Financial considerations play a crucial role in the adoption of ISTS-based green OA. After accounting for ISTS waivers and exemptions, the net open access charges for renewable energy projects in the top ten C&I states in India range between Rs 2 to 3.5 per unit. These waivers have been instrumental in reducing costs and promoting green OA adoption. However, these waivers will gradually decline, decreasing by 25% annually from July 2025 to June 2028. After this period, no waivers will be applicable to ISTS projects, except those related to offshore wind energy and green hydrogen production. This phased reduction in waivers may impact future ISTS-based green OA growth and investment trends. News source: PV Magazine

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