The central government has decided to grant waiver of inster-state transmission system (ISTS) charges to off-shore wind projects and green hydrogen/green ammonia.
This will facilitate wider execution of offshore wind energy initiatives, to promote the expansion of green hydrogen / green ammonia projects and to encourage the offtake of renewable energy from energy storage system projects.
As per the notification issued by Ministry of Power, a complete waiver of ISTS charges has been given for off-shore wind power projects commissioned on or before December 31, 2032 for a period of 25 years from the date of commissioning of the project. The off-shore projects commissioned from January 1, 2033 would be given graded ISTS charges. Earlier, all wind energy projects were provided waiver upto June 30, 2025.
The government has also granted complete waiver of ISTS charges for a period of 25 years from the date of commissioning of the project, for green hydrogen/green ammonia production units, using renewable energy (commissioned after March 8, 2019), pumped storage plants (PSPs) or battery storage systems or any hybrid combination of these technologies. The projects commissioned on or before December 31, 2030 shall be eligible for this waiver. The projects after December 31, 2030 will attract graded transmission charges thereafter.
To promote development of PSPs, the criteria for availing the complete waiver of ISTS charges for PSP projects has now been linked to the date of award of the project rather than commissioning of the project. This shall be applicable in cases where construction work is awarded on or before June 30, 2025.
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