Govt. waives ISTS for new hydro power projects

The Power Ministry has announced a waiver of the inter-state transmission system (ISTS) charges on wheeling electricity for 18 years for new hydropower projects.

The waiver is already available to solar and wind power projects. The government has set an ambitious plan to have 500 GW of generation capacity from non-fossil energy-based sources by 2030.

“In a further step to realise the Government of India’s commitment to achieving its power requirement from renewable energy sources, the Ministry of Power has issued an order for the waiver of Inter-State Transmission system (ISTS) charges on the transmission of electricity generated from new hydro-power projects,” a power ministry release said.

Hydropower projects, being clean, green, and sustainable will be of paramount importance in our clean energy transition journey. They are also essential for the integration of solar and wind power, which are intermittent in nature, the ministry said.

In acknowledgment of the inherent qualities of hydro-power, the government declared hydropower projects as a renewable source of power in March 2019.

However, the waiver of inter-state transmission charges, provided to solar and wind projects, had not been extended to hydropower projects.

To remove this discrepancy and to provide a level-playing field to hydro projects, the Ministry of Power has now decided to extend the waiver of ISTS charges for new hydropower projects, for which construction work is awarded and PPA (power purchase agreement) is signed on or before June 30, 2025.

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