New Delhi: The National Solar Energy Federation of India (NSEFI) has formally requested the central government to extend the Inter-State Transmission System (ISTS) charges waiver beyond the current deadline of June 30, 2025, citing mounting delays that threaten the viability of renewable energy projects worth nearly ₹5 lakh crore.
In a letter to the Advisor to the Prime Minister’s Office, National Solar Energy Federation of India recommended that the ISTS waiver be extended to projects commissioned up to June 2026, provided they meet key eligibility criteria.
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These include:
- Application for ISTS connectivity submitted on or before June 30, 2023
- Financial closure achieved
- Acquisition of at least 50% of the required land
- Procurement orders placed for wind turbines and/or inverters
Industry Concerns:
National Solar Energy Federation of India, representing stakeholders across the solar energy value chain, highlighted that while the Ministry of Power’s ISTS waiver notification had made renewable power more competitive, delays in CERC’s ratification (issued in February 2023) and other regulatory hurdles have caused many developers to fall behind schedule.
“Developers who committed to projects based on the original Ministry of Power notification now risk missing the deadline, solely due to factors beyond their control,” NSEFI stated.
National Solar Energy Federation of India: Key issues flagged include
- Delayed approvals under Section 68(1) of the Electricity Act linked to the Great Indian Bustard conservation case
- Lagging timelines for transmission planning and execution
- Deferred commissioning dates, with some projects receiving ISTS connectivity effectiveness only in 2026 or 2027
To address this, NSEFI has proposed a milestone-based eligibility framework that aligns with existing CERC guidelines and recent MoP policies for battery and pumped hydro storage projects.
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“This will ensure that only serious, committed developers who factored the ISTS waiver into their project planning benefit from the extension,” the federation emphasized.
If not addressed, stakeholders warn that failure to extend the ISTS waiver could impact India’s ambitious renewable energy capacity targets and investor confidence in the sector.
