As India accelerates towards its goal of achieving 500 GW of renewable energy (RE) capacity by 2030, the Electric Power Transmission Association (EPTA), the leading body for transmission companies, has called on the government to adopt a more flexible stance regarding the planned withdrawal of the Inter-State Transmission System (ISTS) waiver. The association has proposed that the government consider alternative options to provide much-needed relief to renewable energy developers.
EPTA recommended implementing a milestone-based eligibility framework that would allow projects that have made significant progress but have faced delays due to external factors to continue benefiting from the ISTS waiver. The association suggested extending the timeline for such projects, giving them a few additional months to complete construction and qualify for the waiver.
In addition, EPTA proposed a gradual reduction of the waiver, with a 10% annual phase-out instead of the proposed 25%. This more measured approach would help mitigate the impact of the waiver’s withdrawal on green energy costs, ensuring that renewable energy remains competitive and continues to attract investment.
The ISTS waiver, which has been a key enabler of India’s green energy transition since 2016, has only been extended once. It is now scheduled for a phased withdrawal starting on July 1, 2025. Industry stakeholders are concerned that the proposed 25% annual phase-out could disrupt ongoing projects, hinder investments, and increase costs, particularly for commercial and industrial (C&I) consumers, who already face some of the highest electricity tariffs globally.
GP Upadhyaya, Director General of EPTA, expressed his optimism: “The government has been highly supportive of the sector and has introduced several policy measures, especially in the last six months. We are hopeful that the government will take a pragmatic approach on the ISTS waiver issue.”
Mr Upadhyaya clarified that EPTA is not seeking a blanket extension but rather proposes that projects that have met key milestones—such as securing financial closure, acquiring at least 50% of the required land, and placing major equipment orders—be granted a 6-9 month extension to continue availing the ISTS waiver benefits.
This proposal is in line with the recent milestone-based extensions granted to pumped hydro and battery storage projects, which will continue to benefit from the waiver until June 2028. EPTA also stressed the crucial role of the transmission sector in India’s renewable energy goals. With over $100 billion in expected investments over the next 8-10 years, the growth of the transmission infrastructure will be critical to the success of India’s green energy ambitions.
In addition to addressing the ISTS waiver issue, EPTA highlighted several key challenges facing the transmission sector. These include the urgent need to ramp up domestic production of HVDC 765 kV equipment under the Production-Linked Incentive (PLI) scheme, as European imports are fully booked and costly, and restrictions on Chinese imports remain in place.
Furthermore, the association emphasized the planned offshore transmission line between the Andaman Islands and Paradip in Odisha, a part of the One Sun, One World, One Grid initiative. This project aims to replace fossil fuel-based power in the islands with renewable energy from the mainland. EPTA also noted India’s growing grid strength and future opportunities for cross-border electricity connections, including potential links between the Andaman Islands and Singapore, and Gujarat and the UAE.
The Electric Power Transmission Association (EPTA) is based in New Delhi and represents leading private electricity transmission developers, stakeholders, and experts in the field. Since its establishment in 2012, EPTA has played a pivotal role in promoting the development of transmission systems at regional, national, and intrastate levels, providing a platform for collaboration and knowledge sharing within the industry and with the government.
