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 6th Dec 2022
Date of Notification
6th December, 2022
Applicability of order
Provisions added to MoP Order dated 23rd November, 2021 and its subsequent orders
Clarifications on certain aspects
Intra-state transmission system (InSTS) which is used for conveyance of electricity across territory of intervening state as well as conveyance within state which is incidental to such ISTS of electricity, shall be included for sharing of ISTS charges. Any waiver of ISTS charges that applies to ISTS shall also be applicable to such parts of InSTS. Transmission charges of such InSTS shall be reimbursed by CTU as is being done for ISTS system. Concerned Regional Power Committee may through studies identify such lines.