January 26, 2021

Centre’s determination to increase ISTS waiver welcomed by renewable power business

NEW DELHI: The federal government’s determination to increase the waiver on clear energy-based inter-state transmission (ISTS) initiatives that are commissioned earlier than June 30, 2023 has been met with reduction by the business, after covid-19 closely set initiatives again.

“No inter-state transmission costs and losses will probably be levied on transmission of the electrical energy generated by energy vegetation utilizing photo voltaic and wind sources of power, together with solar-wind hybrid energy vegetation with or with out storage commissioned until 30th June, 2023,” mentioned the Ministry of Energy’s notification. The waivers will apply for 25 years after the graduation of the venture.

“This extension will present much-needed reduction to the renewable Business gamers whose venture timelines have been affected by COVID-19 and its induced lockdown,” Nationwide Photo voltaic Power Federation of India (NSEFI) chairman Pranav R Mehta informed ET.

“Whereas the ministry has included CPSU and Manufacturing initiatives additionally within the record, we will probably be sending a illustration quickly to incorporate the pliability scheme initiatives additionally within the record for the ISTS waiver till June 2023,” he added.

This order applies to photo voltaic, wind, and hybrid initiatives, and consists of storage initiatives as properly. Obligated entities can even avail of the waiver to satisfy their renewable power obligations (RPO).

NSEFI had lobbied for the extension of the waiver even earlier than covid-19 was a priority for builders, asking for a one-year extension over the previous six months.

“Provided that typical wind and solar energy initiatives take 18-24 months from bidding to lastly get commissioned, the August 5 notification is necessary and well timed,” mentioned Rajat Tomar, Supervisor, M&A consulting at KPMG India and an influence sector professional. Tomar added that traders collaborating in bids over the following couple of years will profit from this discover as they may have clearer coverage visibility whereas planning their initiatives.

In a bid to lock the initiatives to attain the 175 GW goal by 2022, the federal government had mentioned that ISTS costs and losses generated from photo voltaic and wind initiatives, which had been commissioned earlier than December 31, 2022, could be exempted. The federal government’s newest notification is the third such revision, after its earlier date of March 31, 2022.