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 Jan 2021
Date of Notification
15th January, 2021
Wind
No inter-state transmission charges will be levied on transmission of the electricity generated from following power plants for a period of 25 years from the date of commissioning of the power plants which meet the following criteria:
a) Power plants commissioned upto 30th June, 2023 for sale to DISCOMS, irrespective of whether this power is within RPO or not, provided that the power has been procured competitively under the guidelines issued by the Central Government. Power from such plants may also be used for charging of storage including Hydro pumped storage plants. Further, where any such project eligible for waiver is granted extension of time from commissioning 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 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.
a) Power plants commissioned upto 30th June, 2023 for sale to DISCOMS, irrespective of whether this power is within RPO or not, provided that the power has been procured competitively under the guidelines issued by the Central Government. Power from such plants may also be used for charging of storage including Hydro pumped storage plants. Further, where any such project eligible for waiver is granted extension of time from commissioning 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 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
No inter-state transmission charges will be levied on transmission of the electricity generated from following power plants for a period of 25 years from the date of commissioning of the power plants which meet the following criteria:
a) Power plants commissioned upto 30th June, 2023 for sale to DISCOMS, irrespective of whether this power is within RPO or not, provided that the power has been procured competitively under the guidelines issued by the Central Government. Power from such plants may also be used for charging of storage including Hydro pumped storage plants. Further, where any such project eligible for waiver is granted extension of time from commissioning 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 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.
b) Solar PV power plants commissioned under ""MNRE's Central Public Sector Undertaking (CPSU) Scheme Phase-II (Government Producer Scheme) dated 5.3.2019"",and
c) Solar PV power plants commissioned under SECI Tender for manufacturing linked capacity scheme (RFS No SECI/C&P/RfS/2GW Manufacturing/P3/R1/062019 dated 25.06.2019) for sale to entities having RPO, irrespective of whether this power is within RPO or not.
a) Power plants commissioned upto 30th June, 2023 for sale to DISCOMS, irrespective of whether this power is within RPO or not, provided that the power has been procured competitively under the guidelines issued by the Central Government. Power from such plants may also be used for charging of storage including Hydro pumped storage plants. Further, where any such project eligible for waiver is granted extension of time from commissioning 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 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.
b) Solar PV power plants commissioned under ""MNRE's Central Public Sector Undertaking (CPSU) Scheme Phase-II (Government Producer Scheme) dated 5.3.2019"",and
c) Solar PV power plants commissioned under SECI Tender for manufacturing linked capacity scheme (RFS No SECI/C&P/RfS/2GW Manufacturing/P3/R1/062019 dated 25.06.2019) for sale to entities having RPO, irrespective of whether this power is within RPO or not.
Applicability of order
Applicable prospectively, i.e., from date of issue of order. (superseded February 2018 and August 2020 orders by MoP)
Solar-Wind Hybrid with or without storage
No inter-state transmission charges will be levied on transmission of the electricity generated from following power plants for a period of 25 years from the date of commissioning of the power plants which meet the following criteria:
a) Power plants commissioned upto 30th June, 2023 for sale to DISCOMS, irrespective of whether this power is within RPO or not, provided that the power has been procured competitively under the guidelines issued by the Central Government. Power from such plants may also be used for charging of storage including Hydro pumped storage plants. Further, where any such project eligible for waiver is granted extension of time from commissioning on account of Force Majeure or for delay on part of transmission provided in providing transmission enen 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 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.
a) Power plants commissioned upto 30th June, 2023 for sale to DISCOMS, irrespective of whether this power is within RPO or not, provided that the power has been procured competitively under the guidelines issued by the Central Government. Power from such plants may also be used for charging of storage including Hydro pumped storage plants. Further, where any such project eligible for waiver is granted extension of time from commissioning on account of Force Majeure or for delay on part of transmission provided in providing transmission enen 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 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.