Power ministry extends ISTS charges waiver till 2023

The Ministry of Power issued a notification extending the waiver of inter-state transmission system (ISTS) charges and losses on the supply of power generated from solar and wind power projects until June 30, 2023. As per the notification, no ISTS charges would be levied for 25 years from the date of commissioning of the power plants for the supply and sale to entities having renewable purchase obligations (RPO). This will be irrespective of whether this power is within RPO or not. For discoms, the power should be procured competitively under the guidelines issued by the Central Government. The order will include solar power plants commissioned under the Central Public Sector Undertaking (CPSU) Scheme Phase-II and the projects commissioned under SECI’s tender for manufacturing linked capacity scheme.

In 2018, the ministry had issued an order for a waiver of ISTS charges and losses on the transmission of the electricity generated from solar and wind sources of energy. The waiver was further extended in November 2019 until December 31, 2022.

According to Renewable Watch’s interaction with SECI’s J.N. Swain. There may be a delay of about six months in the commissioning of projects under Tranche I and three to four months under Tranche II. The commissioning time of Tranche I of ISTS projects was October 2020, but most of the projects are now expected to be ready only by March 2021 given the de-lays due to Covid-19 The projects under the remaining tranches are expected to be commissioned on time although it will depend on when the transmission systems are commissioned.

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