The Government of India has outlined the framework for Inter-State Transmission System (ISTS) charge waivers and measures to ensure timely grid connectivity for renewable energy projects, according to a statement in the Rajya Sabha.
ISTS charges are governed by the Central Electricity Regulatory Commission (CERC) (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2020, along with subsequent amendments. As per the 4th Amendment dated June 26, 2025, specific categories of renewable energy and energy storage projects are eligible for structured transmission charge waivers.
Grid connectivity is regulated under the CERC (Connectivity and General Network Access to ISTS) Regulations, 2022, which define timelines and procedures. The Central Transmission Utility (CTU) has been designated as the nodal agency for granting connectivity and General Network Access (GNA).
To ensure seamless integration of renewable energy, progress of generation projects and associated transmission infrastructure is monitored through quarterly Joint Coordination Committee meetings led by CTU. Additionally, the Ministry of Power and the Central Electricity Authority (CEA) oversee transmission planning and execution, while CTU has been mandated to track critical elements on a monthly basis in coordination with developers.
In cases where transmission infrastructure is delayed, CTU, in consultation with CEA, Grid-India, and transmission service providers, develops interim arrangements to enable timely evacuation of renewable power.
The government has also undertaken several initiatives to strengthen transmission infrastructure, including:
- Implementation of the Green Energy Corridor Scheme for renewable power evacuation
- Preparation of a transmission roadmap by CEA for integrating over 500 GW of renewable energy capacity by 2030
- Advance planning under the National Electricity Plan (Transmission), notified in October 2024
As per the revised framework, ISTS charge waivers are structured across multiple renewable and emerging energy segments:
- Solar and Wind Projects: 100% waiver for projects commissioned by June 30, 2025, with a phased reduction thereafter, applicable for 25 years
- Hydro Pumped Storage Plants: Full waiver for projects awarded by June 30, 2028, for 25 years
- Battery Energy Storage Systems (BESS): 100% waiver for projects commissioned by June 30, 2025 or 2028 (depending on configuration), with benefits extending up to 12 years
- Large Hydro Projects (>25 MW): Full waiver for eligible projects commissioned within specified timelines, with benefits up to 18 years
- Green Hydrogen/Ammonia Projects: 100% waiver for projects commissioned by December 31, 2030, with a phased reduction over 25 years
- Offshore Wind Projects: Full waiver for projects commissioned by December 31, 2032, valid for 25 years
Under the Electricity Act, 2003, ISTS charges are shared among designated transmission customers and do not directly impact renewable energy generation costs. The Central Transmission Utility is mandated to ensure an efficient, coordinated, and economical transmission system.
This information was shared by Union Minister of State for New and Renewable Energy, Shri Shripad Yesso Naik, in a written reply to the Rajya Sabha.
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