In a move that can be seen to expedite the installation of renewable energy projects in the next few years, the Union power ministry has said that 100% inter-state transmission (ISTS) charge will be levied on power supplied by solar and plants commissioned on and after July 1, 2028. Currently power distribution companies (discoms) do not have to pay ISTS charges for solar and wind-based electricity, and the waiver was used as an incentive to encourage renewable power capacity addition.
The waiver was initially available for solar and wind projects scheduled for installation within March 21, 2022. Subsequently, the benefit was extended till June 2023, and further to June 30, 2025. Through its latest order, the Union power ministry said that electricity from renewable energy projects commissioned between July 1, 2025 and June 30, 2026 will attract 25% of applicable ISTS charges. Power from projects commissioned in the next one-year period will be liable to pay 50% ISTS charges, and electricity from renewable energy plants coming online between July 1, 2027 and June 30, 2028 will attract 75% ISTS charges.
