India to grant waiver of ISTS charges to off-shore wind projects

May 31 -- India government has decided to grant waiver of inter-state transmission (ISTS) charges to off-shore wind projects and extend the waiver to green hydrogen or green ammonia.

This decision will facilitate execution of offshore wind energy initiatives, to promote the expansion of green hydrogen or green ammonia projects, and to encourage the offtake of renewable energy from energy storage system projects.

As per a Power Ministry notification, 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.

Now, offshore wind would be treated separately, and waiver to these would be granted up to December 31, 2032 with graded transmission charges thereafter.

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 or green ammonia production units, using renewable energy (commissioned after March 8, 2019), pumped storage system 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.

The decision effectively extends the applicability of waiver date from June 30, 2025 to December 31, 2030.