The union minister of power and new and renewable energy has sanctioned new 23 Inter-State Transmission System (ISTS) projects with an estimated cost of Rs 158.93 billion. The new ISTS projects include 13 projects with an estimated cost of Rs 147.66 billion to be developed under tariff-based competitive bidding and 10 projects with an estimated cost of Rs 11.27 billion to be developed under a regulated tariff mechanism.
The new transmission projects will, among other things, assist evacuation systems for 14 GW of renewable projects in Rajasthan, 4.5 GW of renewable energy projects in Gujarat, 1 GW Neemuch Solar Park in Madhya Pradesh, and feeding areas around Akhnoor and Jammu region by creating Siot substation in Jammu. These projects were approved after reviewing the National Committee on Transmission’s recommendations and in accordance with the central government’s National Tariff Policy 2016 which stipulates that ISTS projects be developed through tariff based competitive bidding, with the exception of certain category projects that are strategic, technical-upgradation, or time-bound in nature.
In November 2021, the Ministry of Power and Ministry of New and Renewable Energy issued revised guidelines allowing thermal generation companies to set up renewable energy generation capacity either on their own or through developers through open bids, and supply it to consumers under existing power purchase agreements.