Govt Extends Transmission Charge Waiver Period for Solar Projects Till March 2022

The waiver will be available to these projects for 25 years from the date of commissioning provided the developers sign power purchase agreements with entities, including discoms, for sale of power for compliance of their renewable purchase obligation.

The government has extended the window to avail waiver of inter-state power transmission charges and losses for the solar and wind power projects by three years.

The latest order approved by the power and renewable energy minister RK Singh to renewable projects commissioned up to March 31, 2022 is seen a huge boost to clean energy sources.

Until now, the existing Inter-State Transmission System (ISTS) charge waiver was applicable to solar and wind power 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 commissioning of the project.

A letter issued by the power ministry last week, said, “For generation projects based on solar and wind resources, no inter-state power transmission 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 waiver will be available to these projects for 25 years from the date of commissioning provided the developers sign power purchase agreements with entities, including discoms, for sale of power for compliance of their renewable purchase obligation, the order said.

The order also provides that the waiver would be available to only those projects which are awarded through competitive bidding process as per the guidelines issued by the central government.

The move is expected to further encourage the renewable energy sector, currently buoyed by the anticipating of upcoming surge in renewable auctions after a brief lull.