GOVERNMENT WAIVES INTERSTATE TRANSMISSION CHARGES ON OFFSHORE WIND POWER UNITS
Indian Business Insight
The Government of India plans to boost the two areas of green energy with a view to reduce emissions intensity of gross domestic product (GDP) by 45 percent by 2030 and add 500 gigawatt (GW) of non-fossil fuel based electricity. It has done away with interstate transmission charges on offshore wind power projects that are commissioned by the end of 2032 for 25 years from the date of commissioning. It has also postponed the commissioning date for applicable charges on green hydrogen and ammonia facilities from 2025 to 2030. The Ministry of Power, Government of India has said that offshore wind projects should be established through power purchase agreements (PPA) or on a merchant basis. For offshore wind projects commissioned after 2032, the charges will be 25 percent of existing interstate transmission system (ISTS) charges and increase biennially by 25 percentage points till 2038 when it becomes 100 percent of applicable charges. For green hydrogen and ammonia projects, exemption is being given for 25 years starting the date of commissioning of the project. The projects should be using renewable energy from solar, wind, or large hydro projects commissioned after 8 Mar 2019, or energy storage systems. For green hydrogen and ammonia plants commissioned after 2030, the ISTS charges will be levied at 25 percent of the applicable charges and thereafter increase biennially by 25 percentage points till 2036. Green hydrogen projects and distribution companies (discom) that take power from an energy storage system project will also be exempted from such charges if they draw a minimum 51 percent of annual contract or consume from such projects.