The Ministry of Power (MoP) has issued a clarification on the waiver of inter-state transmission system (ISTS) charges for hydro pumped storage projects (PSPs) and battery energy storage system (BESS) projects.
As per the latest provisions, 100 per cent ISTS charges waiver will apply to hydro PSP projects for which construction has been awarded on or before June 30, 2028. Similarly, co-located BESS projects commissioned by June 30, 2028, will also receive full ISTS charges waiver, provided the power is consumed outside the state and the BESS is connected to the same ISTS sub-station as the associated renewable energy project. However, hydro PSPs awarded after June 30, 2028, and BESS projects commissioned post that date will not be eligible for the waiver. For non-co-located BESS projects, the waiver will continue to follow the extant guidelines of the MoP.