Extend Waiver On Transmission Charges For Renewable Power

New Delhi: Power producers have asked the government to keep the waiver on inter-state transmission charges for renewable energy until 2030 to help clean energy take root more deeply in India’s economy. A consultative meeting chaired by Minister for New and Renewable Energy Pralhad Joshi was held recently, where Wind Independent Power Producers Association (WIPPA) and other associations shared their concerns and suggestions. A key demand from the players was to extend the waiver on inter-state transmission system (ISTS) charges, which is otherwise due to end on June 30 this year, sources aware of the matter said.

Renewable energy players requested MNRE to extend the ISTS waiver till 2030 to promote investments in the sector and aid India’s ambitious energy transition goals. Currently, charges are waived for 25 years for green power projects such as solar, wind, and hybrid projects, and battery energy and pump storage projects commissioned before June 30, 2025.

The current ISTS waiver helps renewable energy developers avoid Rs0.4-1.8 per unit in charges that would have incurred on moving electricity from producing state to consumption centres. This, sources said, is a substantial chunk of the total tariff. If ISTS waiver is not extended, it will lead to significant increase in tariff and make power generated from renewable sources uncompetitive vs other sources like coal, sources said adding this will also lead to an increase in procurement costs of electricity distribution companies.