The government has extended the period to avail transmission charge waivers for the solar and wind power projects. The projects commissioned on or before March 2022 can use the inter-state transmission system (ISTS) for free. For wind and solar projects, the existing waiver was previously applicable to projects commissioned up to March 31, 2019 and December 31, 2019, respectively. The waiver was available for a period of 25 years from the date of commissioning of such projects.
According to an order issued by the power ministry, for generation projects based on solar and wind resources, no ISTS charges and losses will be levied on transmission of the electricity through inter-state transmission system for sale of power by such projects commissioned till March 31, 2022. The order also provides that the waiver would be available to only those projects which are awarded through competitive bidding process. Earlier, the incentive was not available to firms other than power distribution companies. Thus, other entities procuring clean energy from these projects were at disadvantageous position, now they can also avail the benefit.
The order also provides that these new conditions for wavier of transmission charges and losses irrespective of purchasing entity will be applicable prospectively, the order dated February 13, 2018. The order assumes significance in view of India’s ambitious target of raising renewable energy capacities to 175 GW by 2022 including 100 GW of solar and 60 GW of wind energy. At present, India’s installed renewable generation capacity is 62.84GW excluding large hydro projects above 25MW.