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Ministry of Power – Waiver of ISTS charges and losses for renewable power projects

Nodal agency: Ministry of Power

Policy brief

The central government has proposed waiver of ISTS charges and losses for renewable power projects.

Key highlights

ISTS charge	100% ISTS charge waiver for the following: Solar, onshore wind and battery storage projects commissioned by June 2025 for 25 years Offshore wind projects commissioned by December 2032 for 25 years Pumped storage projects awarded by June 2025 for 25 years Green term-ahead and green day-ahead transactions until 30 June 2025 Green hydrogen projects commissioned by December 2030 for 25 years Green hydrogen projects with minimum 51% annual power consumption from energy storage projects utilising renewable power
ISTS charge	Notes: After incentive expiry deadline, ISTS charge to be phased in gradually with annual increments of 25% for solar, wind and storage projects; two yearly increments of 25% for green hydrogen projects Projects granted SCOD extension beyond incentive deadline eligible for 100% ISTS charge waiver
ISTS loss	100% ISTS loss exemption for solar, wind and storage projects auctioned before 15 February 2021
Other highlights	Projects that have been granted SCOD extension beyond 30 June 2025 due to force majeure or unavailability of power evacuation infrastructure shall be eligible for 100% transmission charges waiver.

Status

Active

Stage

Final

Policy documents

13 February 2018

Extension order 1

6 November 2019

Extension order 2

Waiver extended to 30 June 2023.

15 January 2021

Extension order 3

COD deadline for ISTS charges waiver has been extended from 30 June 2023 to 30 June 2025. Waiver has been expanded to pumped hydro, battery storage projects and GTAM transactions.

i. ISTS charges waiver granted to open access projects and GDAM transactions.
ii. ISTS losses waiver granted to projects auctioned until 15 January 2021.
iii. Graded ISTS charges made applicable to projects with COD between July 2025 and June 2028.

23 November 2021

i. ISTS charges waived for projects granted SCOD extension beyond 30 June 2025 due to force majeure and unavailability of transmission infrastructure.
ii. Projects under SECI manufacturing tender eligible for full ISTS charges waiver irrespective of COD.

30 November 2021

ISTS waiver for green hydrogen

Commissioning deadline for green hydrogen projects eligible for ISTS charge waiver has been extended from 30 June 2025 to 31 December 2030.

Waiver on ISTS charges has been extended to offshore wind and green hydrogen projects. In case of pumped storage projects, linkage of incentive deadline to commissioning date has been replaced by project award date.

Clarification 1

SCOD may be extended by up to 6 months for solar and wind projects, subject to maximum of two such extensions, without affecting their eligibility for ISTS waiver.