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 April 2023
Date of Notification
5th April, 2023
Green Hydrogen
No ISTS charges may be levied on RE used for green hydrogen and its derivatives, for units commissioned up to 31st December, 2030. This waiver may be produced for a period of 25 years from the date of commissioing of such plants for production of green hydrogen and its derivatives. Waiver will be applicable to electricity generated from solar, wind, hydro energy sources including hydro-PSP, Battery energy storage systems or any hybrid combination of these technologies provided that hydro power projects commissioned before March 2019 may not be eligible for the waiver.