• Solar power projects in India commissioned till June 30, 2023 won’t be expected to pay transmission charges for a period of 25 years
  • The new commissioning deadline is an extension from the last agreed date of December 31, 2022
  • Solar projects commissioned under CPSU Phase II scheme and SECI’S manufacturing linked tender will be eligible for this waive off

The Ministry of Power in India has once again extended the waive off period for inter-state transmission system (ISTS) charges and losses for solar and wind power projects coming online. As per the new order issued, solar and wind power plants, and hybrid solar-wind projects with or without storage commissioned till June 30, 2023 will be exempted from paying inter-state transmission charges and losses for a period of 25 years post commissioning.

Eligible projects must be selling power to entities having a Renewable Purchase Obligation (RPO), irrespective of whether this power is within the RPO or not.

This includes solar power projects commissioned under the Central Public Sector Undertaking (CPSU) Phase II scheme of the Ministry of New and Renewable Energy (MNRE) and those energized under Solar Energy Corporation of India’s (SECI) manufacturing linked solar tender re-launched in 2019.

Azure Power and Adani Green Energy emerged as the 2 winners of the SECI auction with the former signing contracts to develop 4 GW of solar project development capacity with 1 GW of manufacturing capacity (see 2 GW Greenshoe Option LOA For Azure Power). Adani Green Energy  won 8 GW PV capacity and 2 GW manufacturing capacity contracts with SECI under the same auction (see World’s Largest Solar Award Goes To Adani).

For solar power projects to claim ISTS transmission waive-off, the first commissioning deadline was till December 31, 2019 and was then extended until December 31, 2022 (see India Extends ISTS Charges Waive Off Period).