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In an additional step to grasp the Authorities of India’s dedication to attain its energy requirement from renewable vitality sources, Ministry of Energy (MoP) has issued an order for the waiver of Inter-State Transmission system (ISTS) expenses on transmission of electrical energy generated from new hydro-power initiatives. The mentioned waiver is already obtainable to photo voltaic and wind energy initiatives.
Authorities has set an formidable plan to have 500 GW of era capability from non-fossil vitality based mostly sources by 2030. Hydro energy initiatives, being clear, inexperienced and sustainable will probably be of paramount significance in our clear vitality transition journey. They’re additionally important for the combination of photo voltaic and wind energy, that are intermittent in nature.
In acknowledgement of the aforesaid inherent qualities of hydro-power, Authorities of India declared hydro energy initiatives because the renewable supply of energy in March, 2019, Nevertheless, waiver of inter-state transmission expenses, supplied to photo voltaic and wind initiatives had not been prolonged to hydro energy initiatives.
As a way to take away this discrepancy and to supply a degree taking part in area to hydro initiatives, Ministry of Energy in Authorities of India has now determined to increase the waiver of ISTS Fees on the transmission of energy from new hydro energy initiatives, for which building work is awarded and PPA is signed on or earlier than 30.06.2025.
ISTS expenses shall be levied for transmission of energy from Hydro Energy Tasks the place building work is awarded and PPA is signed after 30.06.2025 as per the next trajectory:
| S. No. | Award of building work + Signing of PPA |
ISTS expenses |
| 1. | 01.07.25 to 30.06.26 | 25% of relevant ISTS expenses |
| 2. | 01.07.26 to 30.06.27 | 50% of relevant ISTS expenses |
| 3. | 01.07.27 to 30.06.28 | 75% of relevant ISTS expenses |
| 4. | from 01.07.28 | 100% of relevant ISTS expenses |
The waiver/or concessional expenses as proven in desk above shall be relevant for a interval of 18 years from the date of commissioning of the hydro energy vegetation. The waiver shall be allowed for Inter-state transmission expenses solely and never losses. The waiver could be made relevant from potential date.
This step is anticipated to supply a lift to the hydro sector, which can even assist enhance India’s water safety and convey growth advantages to hilly states specifically North Japanese States, Uttrakhand, Jammu and Kashmir, Himachal Pradesh and many others. the place many of the hydro potential is positioned.
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