Greater than 21 GW of latest photo voltaic and wind energy tasks have been applied throughout the nation between January and Could 2025, and an enormous capability is anticipated to return on-line in June 2025 as properly. This rush from renewable power builders to finish their tasks is primarily fuelled by the anticipated expiry of the waivers on interstate transmission system (ISTS) fees on June 30, 2025.
It’s extensively believed that these ISTS waivers have been a key driver of renewable power deployment throughout the nation since their introduction in 2016. These waivers have made photo voltaic and wind energy procurement from resource-rich states enticing for utilities and bulk shoppers in different states, by exempting these tasks from varied transmission fees for 25 years from the date of their commissioning.
Though prolonged a number of occasions through the years, no additional ISTS waiver extensions are reportedly being granted for photo voltaic and wind tasks, other than a couple of choose circumstances as determined by the federal government, a lot to the dismay of builders which have requested the ministry for one more extension.
The appliance of ISTS fees will end in an apparent enhance in renewable power costs by as a lot as Rs 1.5 per unit, which may influence offtake prospects. Nevertheless, a phase-wise implementation of ISTS fees is deliberate – a particular plus for the builders – starting with 25 per cent fees levied on tasks commissioned between July 1, 2025 and June 30, 2026, subsequently rising by 25 per cent yearly, with 100 per cent ISTS fees being levied from July 1, 2028 onwards.
Going ahead, with the expiry of waivers on ISTS fees, there’s going to be a particular deal with the development of state transmission infrastructure, encouraging native consumption of renewable power inside the state. Hopefully, it will allow extra streamlined and “not skewed” growth of renewable power tasks within the nation.
