Government Rejects Extension of ISTS Waiver, Impacting Renewable Energy Costs

The Indian government has announced that it will not extend the Inter-State Transmission System (ISTS) charge waiver for solar and wind projects, a senior official confirmed. The waiver is due to end on June 30, 2025.

The decision raises concerns about the financial viability of renewable energy projects, as the ISTS charges allow developers to avoid significant costs related to transmitting electricity across state lines. If the waiver is not extended, electricity tariffs could rise, making renewable energy less competitive compared to coal.

Industry stakeholders, including the Electric Power Transmission Association (EPTA), have urged the government to reconsider. They argue that the waiver extension is crucial for protecting investments of around Rs 2 lakh crore. Various projects face delays due to uncontrollable factors, including land availability and local wildlife protection.

(With inputs from agencies.)