The Ministry of Power (MoP) has issued a new order regarding the waiver of inter-state transmission system (ISTS) charges for electricity generated from renewable sources, energy storage systems (ESS), and green hydrogen or ammonia. This follows multiple earlier orders issued between November 2021 and June 2023. The latest amendment outlines specific provisions related to hydro pumped storage projects (PSP) and battery energy storage system (BESS) projects.
Under the revised provisions, a 100 per cent ISTS charges waiver will be granted to hydro PSP projects for which construction is awarded on or before June 30, 2028. Similarly, BESS projects that are co-located with renewable energy sources and commissioned by the same date will also receive a full waiver, provided the power is consumed outside the state where the project is located. Co-location is defined as both BESS and renewable energy projects being connected at the same ISTS substation.
However, hydro PSP projects awarded after June 30, 2028, and co-located BESS projects commissioned beyond that date, will not be eligible for the waiver. For BESS projects that are not co-located, ISTS charges will be applicable as per the existing MoP orders and Central Electricity Regulatory Commission regulations.
