NEW DELHI: In a big relief for renewable energy projects delayed by the Covid-19 pandemic, the power ministry on Tuesday extended for two more years the waiver on inter-state transmission charges for green power.
The ministry also extended the waiver to transmission of electricity from renewable energy sources for trading on exchanges with a view to expanding the market for green power.
Missing the ISTS (inter-state transmission system) charges would have raised the tariff of power from projects under construction that are likely to miss their completion date because of delays caused by the pandemic. This would have hit offtake of power from such projects and ultimately their financials.
The waiver of ISTS charges was available to projects completed till June 30, 2022. The waiver will now be available for projects that are completed by June 30, 2025, a government statement said. The waiver is for 25 years, the project lifetime.
The waiver has also been extended for pumped storage and battery storage projects. Such projects need to be promoted since they provide ‘balancing power’ required to maintain grid stability in the face of large-scale integration of renewable capacity, estimated at 450 gigawatts by 2030.
The ministry also extended the waiver to transmission of electricity from renewable energy sources for trading on exchanges with a view to expanding the market for green power.
Missing the ISTS (inter-state transmission system) charges would have raised the tariff of power from projects under construction that are likely to miss their completion date because of delays caused by the pandemic. This would have hit offtake of power from such projects and ultimately their financials.
The waiver of ISTS charges was available to projects completed till June 30, 2022. The waiver will now be available for projects that are completed by June 30, 2025, a government statement said. The waiver is for 25 years, the project lifetime.
The waiver has also been extended for pumped storage and battery storage projects. Such projects need to be promoted since they provide ‘balancing power’ required to maintain grid stability in the face of large-scale integration of renewable capacity, estimated at 450 gigawatts by 2030.
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