The National Solar Energy Federation of India (NSEFI) has called on the government to ensure the continued viability of numerous renewable energy projects facing risks due to delays beyond the developers’ control, as per sources close to the matter. In a letter addressed to the advisor to the Prime Minister’s Office, the federation urged the extension of the Inter-State Transmission System (ISTS) charge waiver for projects that are set to be commissioned by June 2026, provided they meet certain criteria, including connectivity application status, financial closure, land acquisition beyond the 50% threshold, and confirmed equipment orders.
Representing a wide range of stakeholders in the solar industry, the federation noted that the ISTS charge waiver, initially announced by the Ministry of Power (MoP), had been instrumental in enhancing the competitiveness of renewable energy. However, delays in its implementation by the Central Electricity Regulatory Commission (CERC) in February 2023 have left many developers in an uncertain position.
ISTS charges are fees for using transmission networks to transfer electricity across states, covering the costs of building and maintaining transmission lines and other related infrastructure. According to energy experts, industry estimates suggest that renewable energy projects worth around Rs 5 lakh crore would be adversely affected if the waiver is not extended.
“Many renewable energy developers made substantial early investments, securing land, achieving financial closure, and entering into agreements based on the original MoP notification,” the federation explained. However, with factors such as a nearly two-year delay in CERC’s approval and other uncontrollable delays, these developers now risk missing the June 30, 2025, commissioning deadline, which would make them ineligible for the waiver.
The federation highlighted several factors contributing to delays, including prolonged approval processes under Section 68(1) of the Electricity Act, stemming from an ongoing Supreme Court case related to the conservation of the Great Indian Bustard, issues in transmission planning, and delays in the commissioning of critical transmission infrastructure.
“Many developers applied for ISTS connectivity well before June 2023, following the timelines set by the original ISTS waiver policy. However, the effectiveness dates for granted connectivity are now being pushed to 2026 or 2027 due to delays in transmission system planning and execution,” the federation said.
To address these issues, the federation has suggested a milestone-based framework for waiver eligibility. It recommends that projects that applied for transmission connectivity before June 30, 2023, have achieved financial closure, acquired at least 50% of the required land, and placed orders for key equipment such as wind turbines and inverters, should qualify for the extension of the ISTS waiver.
The federation believes this approach is in line with CERC’s regulations and the recent MoP notifications that granted similar flexibility to pumped storage and battery storage projects. “The proposed criteria will ensure that only serious and committed developers, who planned their projects with the ISTS waiver in mind, benefit from the extension,” the federation concluded. The National Solar Energy Federation of India (NSEFI) has called on the government to ensure the continued viability of numerous renewable energy projects facing risks due to delays beyond the developers’ control, as per sources close to the matter.
In a letter addressed to the advisor to the Prime Minister’s Office, the federation urged the extension of the Inter-State Transmission System (ISTS) charge waiver for projects that are set to be commissioned by June 2026, provided they meet certain criteria, including connectivity application status, financial closure, land acquisition beyond the 50% threshold, and confirmed equipment orders.
Representing a wide range of stakeholders in the solar industry, the federation noted that the ISTS charge waiver, initially announced by the Ministry of Power (MoP), had been instrumental in enhancing the competitiveness of renewable energy. However, delays in its implementation by the Central Electricity Regulatory Commission (CERC) in February 2023 have left many developers in an uncertain position.
ISTS charges are fees for using transmission networks to transfer electricity across states, covering the costs of building and maintaining transmission lines and other related infrastructure. According to energy experts, industry estimates suggest that renewable energy projects worth around Rs 5 lakh crore would be adversely affected if the waiver is not extended.
“Many renewable energy developers made substantial early investments, securing land, achieving financial closure, and entering into agreements based on the original MoP notification,” the federation explained. However, with factors such as a nearly two-year delay in CERC’s approval and other uncontrollable delays, these developers now risk missing the June 30, 2025, commissioning deadline, which would make them ineligible for the waiver.
The federation highlighted several factors contributing to delays, including prolonged approval processes under Section 68(1) of the Electricity Act, stemming from an ongoing Supreme Court case related to the conservation of the Great Indian Bustard, issues in transmission planning, and delays in the commissioning of critical transmission infrastructure.
“Many developers applied for ISTS connectivity well before June 2023, following the timelines set by the original ISTS waiver policy. However, the effectiveness dates for granted connectivity are now being pushed to 2026 or 2027 due to delays in transmission system planning and execution,” the federation said.
To address these issues, the federation has suggested a milestone-based framework for waiver eligibility. It recommends that projects that applied for transmission connectivity before June 30, 2023, have achieved financial closure, acquired at least 50% of the required land, and placed orders for key equipment such as wind turbines and inverters, should qualify for the extension of the ISTS waiver.
The federation believes this approach is in line with CERC’s regulations and the recent MoP notifications that granted similar flexibility to pumped storage and battery storage projects. “The proposed criteria will ensure that only serious and committed developers, who planned their projects with the ISTS waiver in mind, benefit from the extension,” the federation concluded.
