Ministry Of Power Extends ISTS Waivers To Support Delayed Solar And Wind Projects

The Ministry of Power has announced an extension of waivers on Inter-State Transmission System (ISTS) charges to support solar and wind energy projects facing delays due to slow grid infrastructure development. The move is aimed at protecting renewable energy developers from financial stress caused by factors beyond their control.

According to the new guidelines, the benefit will be available to projects that have a firm Power Purchase Agreement (PPA) in place by March 31, 2026. In addition, these projects must have a scheduled connectivity date between July 1, 2025, and June 30, 2028. Even if such projects are delayed because transmission lines are not ready, they will still qualify for graded ISTS charge waivers. Depending on the timeline and situation, the waiver may cover 75 percent, 50 percent, or 25 percent of the transmission charges.

The Ministry has also clarified that projects with scheduled connectivity on or before June 30, 2025, may continue to receive a full 100 percent waiver, provided they meet the required conditions. This ensures that earlier projects are not unfairly impacted by infrastructure delays that occurred during their execution phase.

The decision also addresses concerns related to financial responsibility. In most cases, ISTS charges are paid by power buyers such as state distribution companies. However, delays in transmission readiness often create disputes between developers and buyers over who should bear the cost. By extending the waiver, the government has reduced the chances of such disputes and provided clarity to all stakeholders involved.

At the same time, the policy includes conditions to ensure accountability. Developers will need to show that their project is ready for operation and that the delay in achieving the Commercial Operation Date (COD) is directly linked to the readiness of the transmission system. This means projects must be prepared to start operations as soon as the grid becomes available.

The extension is expected to support the growth of renewable energy in India by addressing one of the key challenges in the sector, which is the lack of timely transmission infrastructure. It also provides financial stability and confidence to investors and developers who are working on large-scale solar and wind projects.

Overall, the decision reflects the government’s effort to maintain the pace of clean energy expansion while dealing with practical issues in grid development. It is likely to encourage further investments and help India move closer to its renewable energy goals.