ISTS Waiver

To promote the development of renewables in RE-rich states and encourage inter-state procurement of renewables, the central government allowed waiver of ISTS charges and losses for solar and wind projects in 2016. Through various subsequent orders, the Ministry of Power (MoP) extended the deadline of ISTS waiver for some solar and wind project categories commissioned till 30th June, 2025. Recently, the ambit of the waiver has been widened for green hydrogen, large hydro plants, pumped storage hydro (PSH) and battery storage (BESS). We have tracked the several amendments and evolution of the ISTS waiver framework since 2016 below.

MoP Order Feb 2018

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Date of Notification
13th February, 2018
Wind
1. No ISTS charges and losses will be levied on transmission of electricity through ISTS system for sale of power by such projects commissioned till 31st March, 2022.
2. Above Waiver will be available for a period of 25 years from date of commissioning of such projects.
3. This waiver is available for projects entering into PPAs with all entities, including DISCOMs, for sale of power from such projects for compliance of their RPO.
4. Waiver is allowed only to projects that are awarded under competitive bidding process in accordance with guidelines issued by Central Govt.
Solar
1. No ISTS charges and losses will be levied on transmission of electricity through ISTS system for sale of power by such projects commissioned till 31st March, 2022.
2. Above Waiver will be available for a period of 25 years from date of commissioning of such projects.
3. This waiver is available for projects entering into PPAs with all entities, including DISCOMs, for sale of power from such projects for compliance of their RPO.
4. Waiver is allowed only to projects that are awarded under competitive bidding process in accordance with guidelines issued by Central Govt.
Applicability of order
Applicable prospectively, i.e., from date of issue of order. (superseded June 2016 order by MoP)