CERC Notifies Key Waivers And Transmission Reforms To Boost Renewable And Storage Projects

The Central Electricity Regulatory Commission (CERC) has released the fourth amendment to the Sharing of Inter-State Transmission Charges and Losses Regulations, 2020. This amendment, notified on June 26, 2025, brings key changes to streamline the integration of renewable energy and energy storage systems into the national grid.

One of the important updates includes defining terms like “Tariff Regulations” and “Terminal Bay” as per updated guidelines. For transmission charge sharing, a change has been made to Regulation 9, where entities within a state’s control area but not part of the state’s distribution licensees will now bear charges based on their granted General Network Access (GNA).

For generators having dual connectivity to both inter- and intra-state transmission systems, the amendment clarifies that transmission deviation will be calculated based on net metered injection exceeding the allowed GNA and STU access, with data coordination ensured between STU, NLDC, and CTU.

Further, Regulation 13 introduces major waivers for renewable energy generating stations (REGS), renewable hybrid generating stations (RHGS), and energy storage systems (ESS). Wind and solar projects are eligible for a 100% waiver if commissioned by June 30, 2025. The percentage of waivers reduces in steps for projects commissioned annually until June 2028, after which no waiver is granted.

Hydro-based pumped storage projects will get a 25-year waiver if construction begins before June 2028. Battery storage systems will also receive up to 100% waiver depending on their connection to renewable sources and date of commissioning. If charged directly from co-located renewables, they are fully eligible, but if connected to the grid or charged from other sources, the waiver percentage drops progressively over time.

Hydropower projects will also get waivers for 18 years from the date of commercial operation, depending on when their construction contracts and power purchase agreements were signed. Offshore wind and green hydrogen or ammonia projects also receive defined waivers based on commissioning year, ranging from 100% to 0%, with full benefit available if commissioned before 2033 and 2034, respectively.

The amendment also allows for waiver extensions of up to six months (twice) in case of delays due to force majeure, including transmission unavailability, for projects initially eligible for waivers. Extensions can be granted by agencies like MNRE or recommended by a CERC committee, depending on the PPA structure.

In terms of compliance, ESS projects must meet the condition of sourcing at least 51% of their charging power from renewable sources to avail waivers. This will be self-declared initially and later verified annually by the NLDC.

Additionally, the amendment mandates that if terminal bays are ready but the connected project has not started commercial operations, the project developer must still bear annual transmission charges for the unused capacity.

The amendment also updates terminology and introduces provisions for calculating availability and billing of transmission systems, especially in cases where tariff details are not yet fixed. The CTU will estimate such charges based on approved capital costs. This regulation is now in effect from the date of publication.