Government Waives ISTS Charges on Offshore Wind and Green Hydrogen Plants
The waiver will facilitate wider execution of offshore wind energy initiatives, promote the expansion of green hydrogen projects and encourage the offtake of renewable energy from energy storage system projects.
May 30, 2023. By Anurima Mondal
As per the notification issued by Ministry of Power, a complete waiver of ISTS charges has been given for off-shore wind power projects commissioned on or before December 31, 2032 for a period of 25 years from the date of commissioning of the project.
The off-shore projects commissioned from January 1, 2033 would be given graded ISTS charges. Earlier, all wind energy projects were provided waiver upto June 30, 2025. Now, offshore wind would be treated separately, and waiver to these would granted up to December 31, 2032 with graded transmission charges thereafter.
The government has also granted complete waiver of ISTS charges for a period of 25 years from the date of commissioning of the project, for green hydrogen/green ammonia production units commissioned after March 8, 2019, pumped storage system, battery storage systems or any hybrid combination. The projects commissioned on or before December 31, 2030 shall be eligible for this waiver. The projects after December 31, 2030 will attract graded transmission charges thereafter. The decision effectively extends the applicability of waiver date from June 30, 2025 to December 31, 2030.
To promote development of Pump Storage Plants (PSP), the criteria for availing the complete waiver of ISTS charges for PSP projects has now been linked to the date of award of the project rather than commissioning of the project. This shall be applicable in cases where construction work is awarded on or before June 30, 2025.
The ISTS charges on drawl of energy from energy storage projects, which was earlier granted to the project, will henceforth be available for each individual user of such project. The individual user will get this benefit, if at least 51 percent of the energy utilised by the user for charging the storage system is renewable energy. Earlier, the limit of 51 percent was at project level.
In case a project is eligible for waiver of transmission charges based on its original date of commissioning, the same benefit will continue to be made available if date of commissioning is extended by competent authority.
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