The Ministry of Power has stated that solar and wind projects with a firm start date of connectivity between July 1, 2025, and June 30, 2028, may be considered for an extension of the graded interstate transmission system (ISTS) charge waiver of 75%, 50%, or 25%, as applicable, if commissioning is delayed due to the unavailability of the transmission system.

In an office memorandum, the Ministry specified that projects may be considered for the extension of waiver benefits subject to certain conditions. These include having a firm power purchase agreement as of March 31, 2026, and a firm start date of connectivity within the specified period.

The projects must also achieve their commercial operation date before, or within a specified time limit from, the commercial operation date of the transmission system concerned

Projects with a firm start date of connectivity on or before June 30, 2025, may be considered for a conditional 100% ISTS charge waiver.

The memorandum stated that the benefit of ISTS charge waivers accrues to procurers, as the responsibility for payment of ISTS charges lies with them under existing regulatory provisions.

It also noted that delays in commissioning due to transmission system non-readiness may lead to disputes between developers and procurers.

The Central Electricity Regulatory Commission may make suitable regulatory provisions to provide these benefits.

The Ministry said the decision follows representations from renewable energy developers seeking clarity on the extension of graded ISTS waiver benefits for projects facing delays beyond their firm connectivity timelines.

Mercom had earlier highlighted developer concerns that inadequate substation capacity and delayed transmission readiness could leave otherwise viable renewable projects stranded outside the waiver window.  Developers had warned that without relief for such delays, projects bid on the assumption of an ISTS waiver could become financially unviable, with transmission charges ranging widely across zones.

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