The ISTS waiver of Green Hydrogen and Green Ammonia projects extended from 30 June 2025 to 31 Dec 2030.

 The ISTS waiver of Green Hydrogen and Green Ammonia projects extended from 30 June 2025 to 31 Dec 2030. .

ISTS, or Inter-State Transmission System, plays a crucial role in delivering renewable energy, especially in India, by facilitating power transmission between states. The ISTS network is used to connect renewable energy sources like solar and wind farms in producing regions to areas with higher demand, enabling the utilization of renewable energy across the country. 

Key aspects of ISTS in renewable energy: 

Facilitating Power Delivery:

ISTS projects enable the transmission of renewable energy from regions with abundant resources (like solar in Rajasthan) to states with greater electricity demand. 

Bridging Supply-Demand Gap:

The ISTS network helps bridge the gap between the availability of renewable energy and the demand faced by local distribution companies (DISCOMs), especially in states with limited RE development opportunities. 

ISTS Tenders:

In India, ISTS-based tenders have played a significant role in the overall issuance capacity of utility-scale RE tenders, accounting for nearly a quarter since 2020. 

Waivers and their Impact:

Waivers on ISTS transmission charges, initially intended to support the RE sector, were a key factor in promoting ISTS-based RE projects and reducing generation costs. However, these waivers are being phased out, potentially increasing power costs for industries and developers. 

Green Open Access:

ISTS-based green open access (OA) allows commercial and industrial (C&I) consumers to access green power, contributing to a more sustainable energy consumption profile. 

Impact of Waiver Phasing:

The phasing out of ISTS waivers, expected by 2028, will lead to increased transmission costs for RE projects, potentially impacting their viability and increasing electricity prices for consumers. 

Future of ISTS:

The future of ISTS-based RE projects will depend on the balance between the government's renewable energy targets and the costs associated with transmission, as well as the availability of alternative solutions like battery energy storage systems. 

The ISTS waiver of Green Hydrogen and Green Ammonia projects extended from 30 June 2025 to 31 Dec 2030.

In a major decision, the Government has decided to grant waiver of ISTS charges to Off-Shore Wind Projects and extend the waiver to Green Hydrogen/Green Ammonia . This decision has been taken to facilitate wider execution of offshore wind energy initiatives, to promote the expansion of Green Hydrogen / Green Ammonia Projects and to encourage the offtake of renewable energy from Energy Storage System Projects.

As per the notification issued by Ministry of Power, a complete waiver of ISTS charges (Inter-State Transmission Charges) has been given for off-shore wind power projects commissioned on or before 31st December, 2032 for a period of 25 years from the date of commissioning of the Project. The off-shore projects commissioned from 1st January, 2033 would be given graded ISTS charges. Earlier, all wind energy projects were provided waiver upto 30.06.2025. Now, offshore wind would be treated separately, and waiver to these would granted up to 31st Dec, 2032 with graded transmission charges thereafter.