No ISTS Waiver Extension for Solar, Wind Projects

New Delhi, Jul 14 (PTI) The government is not planning to extend the Inter-State Transmission System (ISTS) charges waiver for solar and wind projects, according to a senior government official.

The deadline for announcing an extension on waiver on Inter-State Transmission System (ISTS) charges for setting up and commissioning solar and wind projects ended on June 30, 2025.

"We will not extend the waiver (for solar and wind projects)," an official told PTI in reply to a question on whether the government plans to extend the ISTS waiver.

Replying to another query on the financial viability of projects which could not be commissioned by June this year, the official said, "We will evaluate their situation on a case-by-case basis and accordingly decide to provide suitable relief."

The ISTS waiver helps renewable energy developers avoid significant charges that would have otherwise been incurred on moving electricity from the producing state to consumption centres.

The Inter-State Transmission System (ISTS) charges are fees levied for transmitting electricity across state lines in India.

If the ISTS waiver is not extended, it will lead to a significant increase in tariffs and make power generated from renewable sources uncompetitive vis-a-vis other traditional sources like coal.

Last month, apex industry body Electric Power Transmission Association (EPTA) urged the government to safeguard the viability of around 30 GW clean energy projects by extending the ISTS charges waiver till March 2026.

Director General of EPTA G P Upadhyay had said that investments of about Rs 2 lakh crore will be impacted if relief is not given to players in the form of an extension in the waiver.

The capacity has been delayed due to reasons beyond power companies' control and they may move to CERC (Central Electricity Regulatory Commission) for solutions that may further delay in commissioning of these projects spread across states, such as Rajasthan, Gujarat, Madhya Pradesh, Andhra Pradesh, Tamil Nadu and Maharashtra, among others, he said.

Renewable energy projects are facing various problems due to land availability, local issues and the Great Indian Bustard (found in Rajasthan and Gujarat), among others.