- Solar power projects in India that are commissioned by December 31, 2019 will not have to pay interstate transmission (ISTS) charges
- This will apply for a period of 25 years from the date of commissioning
- The charges would have increased the total cost of using solar power from another state by 1.00 to 2.50 INR ($0.01 to $0.04) per kWh
India has extended the waiver for paying interstate transmission (ISTS) charges and losses for solar power projects. All solar power systems that are commissioned by December 31, 2019 won’t have to pay ISTS. Previously this deadline was June 30, 2017, Mercom Capital Group reports.
Imposition of these charges would have raised the cost of using solar power from another state by 1.00 to 2.50 INR ($0.01 to $0.04) per kWh, according to The Economic Times (ET), a local business paper. It would have depended on the distance of transmission and voltage.
The new deadline will be eligible for a period of 25 years from the date of commissioning.
Welcoming the step, Raj Prabhu of Mercom said, “This is a good step taken by the Ministry of Power. The extension removes uncertainty and will help solar projects get developed in resource-rich areas and spread solar power consumption across the country like the proposed 750 MW solar project in Bhadla solar park in Rajasthan by Uttar Pradesh.”