Power Producers Push for Transmission Charge Waiver Extension: What’s at Stake?

In a recent consultative meeting with the Ministry of New and Renewable Energy, power producers urged the government to extend the waiver on inter-state transmission system (ISTS) charges for renewable energy projects until 2030. With the current waiver set to expire on June 30, 2025, industry stakeholders fear that its discontinuation could disrupt India’s clean energy momentum.

Why Is This Waiver Important?

The waiver, introduced to promote renewable energy adoption, exempts projects such as solar, wind, hybrid, and battery storage from ISTS charges for 25 years—provided they are commissioned before the deadline. These charges typically range from ₹0.4 to ₹1.8 per unit, meaning their reintroduction could significantly impact project viability and increase overall tariffs.

Industry leaders argue that if the waiver expires, renewable energy may lose its cost competitiveness against traditional sources like coal. This could slow down investment and burden electricity distribution companies (DISCOMs) with higher procurement costs.

The Bigger Picture

India has ambitious renewable energy targets, and policies that support affordable green power are crucial to achieving them. The Ministry of Power had previously extended the waiver in 2021, recognizing its role in sustaining investor confidence and expanding the clean energy footprint.

Now, as 2025 approaches, stakeholders insist that extending the waiver until 2030 is necessary to ensure continued growth and affordability in the sector. Without it, the road to a greener grid could become significantly steeper.

As the government weighs its decision, one thing is clear—policy certainty will be key to maintaining India’s renewable energy momentum. The next move could define the sector’s trajectory for years to come.