Power Ministry waives ISTS charges for green projects for 25 yrs

01 Jun 2023 CW Team

The waiver will be applicable to off-shore projects commissioned on or before December 31, 2032, for a duration of 25 years. However, projects commissioned from January 1, 2033, will be subject to graded ISTS charges.

Previously, all wind energy projects were granted a waiver until June 30, 2025. Now, offshore wind projects will be treated separately, and the waiver will be extended until December 31, 2032, followed by graded transmission charges thereafter.

Additionally, the government has also provided a complete waiver of ISTS charges for green hydrogen and green ammonia production units that utilize renewable energy (commissioned after March 8, 2019), pumped storage systems or battery storage systems, or any hybrid combination of these technologies.

"The projects commissioned until December 31, 2030, will be eligible for the waiver. Projects after December 31, 2030, will be subject to graded transmission charges thereafter," stated the Ministry of Power.

To promote the development of Pump Storage Plants (PSP), the eligibility criteria for a complete waiver of ISTS charges for PSP projects have been linked to the date of project award rather than project commissioning. This will apply to cases where construction work is awarded on or before June 30, 2025, according to the ministry.

If a project is eligible for the ISTS charge waiver based on its original Date of Commissioning (COD), the same benefit will continue to be available if the COD is extended by the competent authority.

"This is considered necessary to provide confidence to investors who are making investment decisions based on the current circumstances, but whose COD may be extended beyond the relevant applicable date for transmission charge waiver due to reasons beyond their control," explained the ministry.

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The Ministry of Power announced on Monday that it would completely waive the inter-state transmission system (ISTS) charges for off-shore wind, green hydrogen, and green ammonia projects for a period of 25 years. This decision aims to facilitate the implementation of offshore wind energy initiatives, promote the expansion of green hydrogen and green ammonia projects, and encourage the uptake of renewable energy from energy storage system projects, as stated by the ministry. The waiver will be applicable to off-shore projects commissioned on or before December 31, 2032, for a duration of 25 years. However, projects commissioned from January 1, 2033, will be subject to graded ISTS charges. Previously, all wind energy projects were granted a waiver until June 30, 2025. Now, offshore wind projects will be treated separately, and the waiver will be extended until December 31, 2032, followed by graded transmission charges thereafter. Additionally, the government has also provided a complete waiver of ISTS charges for green hydrogen and green ammonia production units that utilize renewable energy (commissioned after March 8, 2019), pumped storage systems or battery storage systems, or any hybrid combination of these technologies. The projects commissioned until December 31, 2030, will be eligible for the waiver. Projects after December 31, 2030, will be subject to graded transmission charges thereafter, stated the Ministry of Power. To promote the development of Pump Storage Plants (PSP), the eligibility criteria for a complete waiver of ISTS charges for PSP projects have been linked to the date of project award rather than project commissioning. This will apply to cases where construction work is awarded on or before June 30, 2025, according to the ministry. If a project is eligible for the ISTS charge waiver based on its original Date of Commissioning (COD), the same benefit will continue to be available if the COD is extended by the competent authority. This is considered necessary to provide confidence to investors who are making investment decisions based on the current circumstances, but whose COD may be extended beyond the relevant applicable date for transmission charge waiver due to reasons beyond their control, explained the ministry. Also Read Punjab DGP inaugurates solar power plants at 13 police stationsAdani Green commissions 130 MW wind power plant in Gujarat