In a boost for solar and wind energy companies, the Power Ministry has waived ISTS (inter-state transmission) charges on electricity generated from solar & wind sources of energy.
Offshore wind power projects commissioned by 2032 will remain exempt from ISTS for 25 years, while the projects commissioned after 2032 will be levied ISTS charges based on the period of commissioning. The move may incentivise early commissioning of solar and wind power projects to save on payment of ISTS charges.
For offshore wind power projects, 25 percent of the applicable ISTS charges will apply to plants being commissioned between 2033 to 2034, 50 percent of the applicable ISTS charges will apply to plants being commissioned between 2034 to 2035, 75 percent of the applicable ISTS charges will apply to plants being commissioned between 2035 to 2036, and full ISTS charges will apply to plants being commissioned 2037 onwards.
For Green Hydrogen and Green Ammonia plants, 25 percent of the applicable ISTS charges will apply to plants being commissioned from 2030 to 2031, 50 percent of the applicable ISTS charges will apply to plants being commissioned from 2032 to 2033, 75 percent of the applicable ISTS charges will apply to plants being commissioned from 2034 to 2035, and full ISTS charges to apply to plants being commissioned 2036 onwards.
The Drawee entities, including Green Hydrogen, Green Ammonia Plants and discoms which contract energy (or capacity) from an ESS project and scheme, shall be granted exemption from the payment of ISTS Charges if they draw a minimum of 51 percent of their annual energy contracted with or consumed from ESS as renewable energy. The waiver shall be allowed only for ISTS charged but not for ISTS losses.
First Published: May 29, 2023 7:31 PM IST
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