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 dated 30th Nov, 2021
Date of Notification
30th November, 2021
Wind
(In addition to existing clause in Order dated 23rd November, 2021)
1. Where any such project eligible for waiver is granted extension of time from commissioning by MNRE after careful consideration, on account of Force Majeure or for delay on part of transmission provider in providing transmission even after having taken requisite steps in time; or on account of delays on part of any Govt Agency, and power plant is commissioned before extended date; it will get benefit of waiver of ISTS charges on transmission of electricity generated by such power plant as if the said plant has been commissioned on or before 30th June 2023.
Furthermore, where such eligible plant is granted extension in COD by competent authority, the commencement and period of LTA shall also get extended accordingly, and it will be deemed that the period of ISTS waiver is extended by the said period.
1. Where any such project eligible for waiver is granted extension of time from commissioning by MNRE after careful consideration, on account of Force Majeure or for delay on part of transmission provider in providing transmission even after having taken requisite steps in time; or on account of delays on part of any Govt Agency, and power plant is commissioned before extended date; it will get benefit of waiver of ISTS charges on transmission of electricity generated by such power plant as if the said plant has been commissioned on or before 30th June 2023.
Furthermore, where such eligible plant is granted extension in COD by competent authority, the commencement and period of LTA shall also get extended accordingly, and it will be deemed that the period of ISTS waiver is extended by the said period.
Solar
(In addition to existing clause in Order dated 23rd November, 2021)
1. Where any such project eligible for waiver is granted extension of time from commissioning by MNRE after careful consideration, on account of Force Majeure or for delay on part of transmission provider in providing transmission even after having taken requisite steps in time; or on account of delays on part of any Govt Agency, and power plant is commissioned before extended date; it will get benefit of waiver of ISTS charges on transmission of electricity generated by such power plant as if the said plant has been commissioned on or before 30th June 2023.
Furthermore, where such eligible plant is granted extension in COD by competent authority, the commencement and period of LTA shall also get extended accordingly, and it will be deemed that the period of ISTS waiver is extended by the said period.
2. ISTS shall be waived for solar PV power plants commissioned under SECI tender for manufacturing linked capacity scheme (RFS No SECI/C&P/RfS/2GW Manufacturing/P-3/R1/062019 dated 25.06.2019) for sale to entities having RPO, irrespective of whether this power is within RPO or not.
1. Where any such project eligible for waiver is granted extension of time from commissioning by MNRE after careful consideration, on account of Force Majeure or for delay on part of transmission provider in providing transmission even after having taken requisite steps in time; or on account of delays on part of any Govt Agency, and power plant is commissioned before extended date; it will get benefit of waiver of ISTS charges on transmission of electricity generated by such power plant as if the said plant has been commissioned on or before 30th June 2023.
Furthermore, where such eligible plant is granted extension in COD by competent authority, the commencement and period of LTA shall also get extended accordingly, and it will be deemed that the period of ISTS waiver is extended by the said period.
2. ISTS shall be waived for solar PV power plants commissioned under SECI tender for manufacturing linked capacity scheme (RFS No SECI/C&P/RfS/2GW Manufacturing/P-3/R1/062019 dated 25.06.2019) for sale to entities having RPO, irrespective of whether this power is within RPO or not.
Storage
(In addition to existing clause in Order dated 23rd November, 2021)
Where any such project eligible for waiver is granted extension of time from commissioning by MNRE after careful consideration, on account of Force Majeure or for delay on part of transmission provider in providing transmission even after having taken requisite steps in time; or on account of delays on part of any Govt Agency, and power plant is commissioned before extended date; it will get benefit of waiver of ISTS charges on transmission of electricity generated by such power plant as if the said plant has been commissioned on or before 30th June 2023.
Furthermore, where such eligible plant is granted extension in COD by competent authority, the commencement and period of LTA shall also get extended accordingly, and it will be deemed that the period of ISTS waiver is extended by the said period.
Where any such project eligible for waiver is granted extension of time from commissioning by MNRE after careful consideration, on account of Force Majeure or for delay on part of transmission provider in providing transmission even after having taken requisite steps in time; or on account of delays on part of any Govt Agency, and power plant is commissioned before extended date; it will get benefit of waiver of ISTS charges on transmission of electricity generated by such power plant as if the said plant has been commissioned on or before 30th June 2023.
Furthermore, where such eligible plant is granted extension in COD by competent authority, the commencement and period of LTA shall also get extended accordingly, and it will be deemed that the period of ISTS waiver is extended by the said period.