Govt extends transmission cost waiver for photo voltaic and wind initiatives


Nonetheless, ISTS transmission costs shall be levied steadily for PSP and BESS initiatives, rising 25% incrementally each three years to achieve 100% from the twelfth 12 months 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 items to be commissioned inside June 30, 2025. The waiver was initially accessible 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 are presently beneath varied levels 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.

Via its newest order on Monday, the Union energy ministry mentioned the “waiver of ISTS costs has additionally been allowed for hydro pumped storage plant (PSP) and battery power 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 equipped from wind or solar energy vegetation.

Nonetheless, ISTS transmission costs shall be levied steadily for PSP and BESS initiatives, rising 25% incrementally each three years to achieve 100% from the twelfth 12 months 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 even have to supply transmission cost waiver to the consumers of inexperienced power. “The transmission costs of such intra-state transmission system shall be reimbursed by the central transmission utility,” the Union energy ministry mentioned. Transmission costs add about Rs 0.20-0.50 per unit to each unit of thermal energy. ISTS cost waivers are recovered by transmission utilities by larger tariffs on standard electrical energy paid by state-run energy distribution firms.

To encourage RE buying and selling on the ability exchanges, ISTS costs have additionally been waived for buying and selling electrical energy equipped 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 enticing for cash-strapped discoms.

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