Indian Government waives charges on use of electricity transmission through RE

India’s Ministry of Power issued an order for extension of the waiver of Inter-State Transmission system (ISTS) charges on the transmission of electricity generated from solar and wind sources for projects to be commissioned up to 30th June 2025.

The order also promotes the development of solar, wind, Hydro Pumped Storage Plant (PSP) and Battery Energy Storage System (BESS), trading of RE in the power exchanges, and seamless transmission of RE power across the states, the Government said.

The waiver of Inter-State transmission system (ISTS) charges has also been allowed for Hydro Pumped Storage Plant (PSP) and Battery Energy Storage System (BESS) projects to be commissioned up to 30th June 2025.

This will promote the Hydro Pumped Storage Plant (PSP) and Battery Energy Storage System (BESS) projects for meeting the balancing requirement of the grid caused due to large scale integration of Renewables in the Electricity Grid i.e. around 450 GW by 2030.

The waiver of transmission charges has also been allowed for the trading of electricity generated/ supplied from Solar, Wind, PSP, and BESS in Green Term Ahead Market (GTAM) and Green Day Ahead Market (GDAM) for two years i.e. till 30th June 2023.

This is expected to encourage the RE trade in the Power Exchanges. The volume of renewable energy trade in the power exchange is expected to increase further.

An opportunity to minimise the curtailment of RE as the RE developers will also have the option to sell power in the power exchanges and get instantly paid on the day of delivery of power itself.  The buyers of Renewable energy will also have an opportunity to sell their surplus power in the power exchanges or allow in advance the sellers to sell in the power exchange, the Government added.

The Government further pointed that it has also been clarified that an intra-State transmission system which is used for the conveyance of electricity across the territory of an intervening State as well as conveyance within the State which is incidental to such inter-State transmission of electricity, shall be included for sharing of inter-state transmission charges.

Any waiver of inter-state transmission charges that applies to Inter-state transmission systems shall also be applicable to such parts of the Intra-state transmission. The transmission charges of such an Intra-state transmission system shall be reimbursed by the CTU as is being done for ISTS system.

Concerned Regional Power Committee may through studies identify such lines, the government said.

India has paved the way for an energy transition from fossil fuel to non-fossil fuel by giving incentive for power trade from Renewable, Hydro PSP, and Energy Storage.