The Ministry of Power has recently extended the benefit of Inter-State Transmission System (ISTS) charge waivers for solar and wind projects that face commissioning delays due to non-readiness of transmission infrastructure, addressing concerns raised by renewable energy developers.

The ministry stated that projects with a firm start date of connectivity between July 1, 2025 and June 30, 2028 will remain eligible for the graded ISTS charge waiver – 75 percent, 50 percent, or 25 percent – as applicable, even if their commissioning is delayed beyond the scheduled connectivity date due to transmission constraints.

“The benefit of ISTS charges waiver accrues to the procurers rather than the Renewable Energy (RE) developers, as the responsibility for payment of ISTS charges lies with the procurers in accordance with the extant regulatory provisions. However, the delay in commissioning of RE projects due to the non-readiness of the transmission system may lead to PPA disputes between RE developers and end procurers. Therefore, such cases may be considered for extension of the benefit of a graded waiver of 75 percent or 50 percent or 25 percent, as applicable, to such projects,” clarified the Ministry of Power.

To be eligible for this extension, the projects must have a firm Power Purchase Agreement (PPA) as on March 31, 2026, and have the firm start date of connectivity within the period from July 1, 2025 to June 30, 2028. Moreover, the project must achieve COD before, or within the specified time limit from, the COD of the concerned transmission system.

The ministry further stated that projects with a firm start date of connectivity on or before June 30, 2025 may be eligible for a 100 percent ISTS charge waiver, provided they meet the same qualifying conditions.

The clarification is expected to provide regulatory certainty, safeguard project viability, and support the timely scaling of renewable energy capacity in India amid ongoing transmission infrastructure challenges.