India Extends Transmission Charge Waiver for Energy Storage Projects Until 2028
India Extends Transmission Charge Waiver for Energy Storage Projects Until 2028

India Extends Transmission Charge Waiver for Energy Storage Projects Until 2028

News summary

India has extended a full waiver of inter-state transmission system (ISTS) charges for electricity storage projects, including pumped storage hydropower and battery storage co-located with renewable projects, until June 2028 to help meet its clean energy goals. However, the waiver for solar and wind projects commissioned after June 30, 2025, is set to expire, prompting the National Solar Energy Federation of India (NSEFI) to urge the government to extend the ISTS waiver to projects commissioned by June 2026 that meet certain progress criteria such as connectivity application status, financial closure, and land acquisition. The federation highlighted that delays in the Central Electricity Regulatory Commission's (CERC) ratification of the waiver and other uncontrollable factors have put many renewable projects, with investments totaling nearly ₹5 lakh crore, at risk of missing the current waiver deadline, threatening their financial viability. NSEFI emphasized the pivotal role the waiver has played in making renewable energy more competitive and noted that prolonged approvals, transmission planning delays, and connectivity issues have contributed to project delays. The government has also approved a ₹54 billion scheme to support 30 gigawatt-hour battery energy storage systems, further signaling its commitment to expanding energy storage capacity. These measures reflect India's efforts to triple its clean energy capacity by 2030 despite challenges posed by the intermittent nature of renewables and infrastructure delays.

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