Ministry Announces Waiver of ISTS Charges on Solar and Wind Energy Projects Till 30 June 2023

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The Ministry of Power recently issued a waiver of inter-state transmission charges and losses on transmission of the electricity generated from solar and wind sources of energy.

Revised Tariff Policy provides that “In order to further encourage renewable sources of energy, no inter-State transmission charges and losses may be levied till such period as may be notified by the Central Government on transmission of the electricity generated from solar and wind sources of energy through the inter-state transmission system for sale.”

The Ministry of Power on 13thFebruary, 2018 had issued an Order for Waiver of inter-state transmission charges and losses on transmission of the electricity generated from solar and wind sources of energy.Further, Ministry of Power on 6 th November, 2019 had extended the waiver date from date 31st March, 2022 to 31st December, 2022.

In supersession of Ministry of Power’s earlier order dated 13.2.2018 and Order No. 6 th November, 2019 ministry decided that no inter-state transmission charges and losses will be levied on transmission of the electricity generated from following power plants for a period of 25 years from the date of commissioning of the power plants which meet the following criteria: a) Power plants using solar and wind sources of energy, including solar-wind hybrid power plants with or without storage commissioned till 30thJune, 2023 for sale to entities having a Renewable Purchase Obligation (RPO), irrespective of whether this power is within RPO or not, provided that in case of distribution licensees, the power has been procured competitively under the guidelines issued by the Central Government. b) Solar PV power plants commissioned under “MNRE’s Central Public Sector Undertaking (CPSU) Scheme Phase-II (Government Producer Scheme) dated 5.3.2019”,and c) Solar PV power plants commissioned under SECI Tender for manufacturing linked capacity scheme for sale to entities having RPO, irrespective of whether this power is within RPO or not.

This following order is  issued with the approval of the Minister of State (I/C) for Power and NRE and is applied from 5th August.

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