Govt waives ISTS charges on offshore wind, green hydrogen, ammonia projects

In case a project is eligible for waiver of ISTS charges based on its original COD, the same benefit will continue to be made available if COD is extended by a BS web competent authority

Photo: Bloomberg

Photo: Bloomberg

BS Web Team

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Ministry of Power on Monday announced a complete waiver of the inter-state transmission system (ISTS) charges on the off-shore wind, green hydrogen, and green ammonia projects for 25 years.

This decision has been taken to facilitate wider execution of offshore wind energy initiatives, to promote the expansion of green hydrogen and green ammonia projects, and to encourage the offtake of renewable energy from energy storage system projects, said the ministry in a statement.

The waiver is applicable to off-shore projects commissioned on or before December 31, 2032, for a period of 25 years. However, the projects commissioned from 1st January 2033 would be given graded ISTS charges.

Earlier, all wind energy projects were provided a waiver of up to June 30, 2025. Now, offshore wind would be treated separately, and waiver to these would be granted up to December 31, 2032, with graded transmission charges thereafter.

Besides, the government also granted a complete waiver of ISTS charges for green hydrogen/green ammonia production units, which uses renewable energy (commissioned after March 8, 2019), pumped storage system or battery storage systems, or any hybrid combination of these technologies.

"The projects commissioned till December 31, 2030, will be eligible for the waiver. Projects after December 31, 2030, will attract graded transmission charges thereafter," said the Ministry of Power.

To promote the development of Pump Storage Plants (PSP), the criteria for availing the complete waiver of ISTS charges for PSP projects has now been linked to the date of award of the project rather than the commissioning of the project. This shall be applicable in cases where construction work is awarded on or before 30th June 2025, according to the ministry.

In case a project is eligible for the waiver of ISTS charges based on its original COD (Date of Commissioning), the same benefit will continue to be made available if COD is extended by the competent authority.

"This is considered necessary to give confidence to the investors who are taking investment decisions based on the present circumstances but their COD may extend beyond the relevant applicable date for transmission charge waiver for reasons beyond their control." the ministry said.



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First Published: May 29 2023 | 9:40 PM IST

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