Renewable Energy Projects Face Impact as ISTS Waiver Ends
Around 26 gigawatts of renewable energy projects may be affected with the termination of the inter-state transmission system (ISTS) charge waiver by June 30, 2025. Delays in commissioning due to various challenges might impact cash flow and project returns, with phased concessions for missed deadlines.
- Country:
- India
The end of the inter-state transmission system (ISTS) charge waiver is expected to impact approximately 26 gigawatts of renewable energy projects, as per a report by Crisil Ratings. The waiver, which was pivotal in promoting solar and wind projects, is set to discontinue from June 30, 2025.
According to Crisil, existing agreements for under-construction utility-scale projects might witness cash flow moderation following the 100% ISTS charge exemption's expiry. Delays due to procedural and regulatory challenges are among the factors influencing the projects.
Developers face a planned phase-down with varying degrees of exemption based on their commissioning timelines. While the waiver initially fostered affordable energy supply, the reduction could affect the debt service coverage ratio, consequently influencing project returns and long-term financial health.
(With inputs from agencies.)
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