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					</table>The <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> has stated that solar and wind projects with a firm start date of connectivity between July 1, 2025, and June 30, 2028, may be considered for an extension of the graded interstate transmission system (ISTS) charges waiver of 75%, 50%, or 25%, as applicable, if the commissioning is delayed due to the unavailability of the transmission system.
In an office memorandum, the Ministry specified that projects may be considered for the extension of waiver benefits subject to certain conditions. These include having a firm power purchase agreement as of March 31, 2026, and a firm start date of connectivity within the specified period.
The projects must also achieve their commercial operation date before, or within a specified time limit from, the commercial operation date of the transmission system concerned
Projects with a firm start date of connectivity on or before June 30, 2025, may be considered for a conditional 100% ISTS charge waiver.
The memorandum stated that the benefit of ISTS charges waiver accrues to procurers, as the responsibility for payment of ISTS charges lies with them under existing regulatory provisions.
It also noted that delays in commissioning due to transmission system non-readiness may lead to disputes between developers and procurers.
The Central Electricity Regulatory Commission may make suitable regulatory provisions to provide these benefits.
The Ministry said the decision follows representations from renewable energy developers seeking clarity on the extension of graded ISTS waiver benefits for projects facing delays beyond their firm connectivity timelines.
Mercom had earlier <a href="https://www.mercomindia.com/as-ists-waiver-nears-amid-lack-of-substations" target="_blank" rel="noopener">highlighted</a> developer concerns that inadequate substation capacity and delayed transmission readiness could leave otherwise viable renewable projects stranded outside the waiver window.  Developers had warned that without relief for such delays, projects bid on the assumption of an ISTS waiver could become financially unviable, with transmission charges ranging widely across zones.
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Government Extends ISTS Charges Waiver for Renewable Projects Hit by Grid Delays

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					</table>The Central Electricity Regulatory Commission (<a href="https://cercind.gov.in/" target="_blank" rel="noopener">CERC</a>) has issued a time frame for waiving interstate transmission (ISTS) charges for renewable energy, energy storage projects, green hydrogen, and green ammonia.
Renewable energy generation stations based on wind, solar, or hybrid sources are eligible for waivers based on their commissioning date. Projects commissioned on or before June 30, 2025, will receive a full waiver for 25 years.
Projects commissioned in successive years up to June 30, 2028, will receive progressively lower waivers, reducing from 75% to 25%. Projects commissioned after June 30, 2028, are not eligible for a waiver.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-1-2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81295 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-1-2.png" alt="ISTS 1" width="603" height="406" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-1-2.png 603w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-1-2-300x202.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-1-2-600x404.png 600w" sizes="auto, (max-width: 603px) 100vw, 603px" /></a>
Energy Storage
The amended provisions also cover energy storage systems (ESS). Pumped storage projects awarded for construction by June 30, 2028, will receive a 25-year waiver.
Battery energy storage systems (BESS) will be treated differently based on their connection and charging source. BESS co-located with renewable power projects at the same substation and charged from such sources are <a href="https://www.mercomindia.com/power-ministry-announces-100-ists-charges-waiver-for-psps-co-located-bess/" target="_blank" rel="noopener">eligible</a> for a 12-year full waiver.
Other BESS will receive graded waivers based on the commissioning date, with eligibility phasing out after June 30, 2028.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-2-2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81296 " src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-2-2.png" alt="ISTS 2" width="1046" height="501" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-2-2.png 842w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-2-2-300x144.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-2-2-768x368.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-2-2-650x311.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-2-2-624x299.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-2-2-600x287.png 600w" sizes="auto, (max-width: 1046px) 100vw, 1046px" /></a>
The provisions introduce critical flexibility to allow battery systems that are otherwise required to charge from renewables to use grid power in contingency situations. However, the drawal from the grid must not exceed 10% of the battery’s annual energy requirement.
Additionally, BESS paired with co-located renewables, without requiring additional connectivity capacity at the ISTS substation, will still qualify under this beneficial category.
Hydropower 
Hydropower projects that sign power purchase agreements (PPAs) or are awarded for construction between December 2022 and June 2028 will receive waivers ranging from 100% to 25% over 18 years. The waiver percentage depends on the PPA signing date or the construction award, whichever is later. Projects beyond June 30, 2028, are not eligible.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-3-2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81297 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-3-2.png" alt="ISTS 3" width="511" height="382" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-3-2.png 511w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-3-2-300x224.png 300w" sizes="auto, (max-width: 511px) 100vw, 511px" /></a>
Offshore Wind
The waiver for offshore wind projects will apply to systems commissioned up to December 31, 2035, with a declining benefit structure from 100% to 25% depending on the commissioning year. No waivers will apply after December 31, 2035.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Offshore-ists.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-82545 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Offshore-ists.png" alt="Offshore ists" width="540" height="322" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Offshore-ists.png 540w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/Offshore-ists-300x179.png 300w" sizes="auto, (max-width: 540px) 100vw, 540px" /></a>
Green Hydrogen and Green Ammonia
Green hydrogen and ammonia projects will also benefit as consumers of the ISTS capacity. Projects commissioned up to December 31, 2033, will receive waivers ranging from 100% to 25% for 25 years. The waiver applies to drawal schedules from renewable or hydro generation, or from ESS that meet at least 51% of their annual electricity requirement from renewables. The most favorable source determines the waiver percentage. CERC has provided detailed illustrations to clarify overlapping eligibility scenarios.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-5-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81300 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-5-1.png" alt="ISTS 5" width="552" height="343" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-5-1.png 552w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/ISTS-5-1-300x186.png 300w" sizes="auto, (max-width: 552px) 100vw, 552px" /></a>
Force Majeure-Based Extensions 
The amendments include a provision to protect projects facing delays due to uncontrollable factors. Projects originally scheduled to be commissioned by June 2025, including renewable and storage projects eligible for waivers, can still retain their waiver if granted an extension due to force majeure or transmission system delays. These extensions can be granted twice, each for up to six months, and must be approved by relevant authorities depending on the case.
Storage Projects Compliance 
To streamline billing, the National Load Despatch Centre (NLDC) will initially accept self-declared compliance with a 51% renewable requirement for storage systems. This will be verified at the end of each financial year. Non-compliance will trigger revised billing without any waiver.
Clarification on Terminal Bay Charges 
The amendments also provide clarifications on the responsibility for paying transmission charges when generation projects delay commissioning while the associated terminal bays are already energized. The guarantee of connectivity must bear the cost of such terminal bays, even if generation has not yet started.
The terminology has been refined to consistently refer to both the associated transmission system and terminal bays. Under a new clause, the Transmission System Availability Factor will be calculated per CERC’s Tariff Regulations, regardless of any contrary provisions in transmission service agreements under competitive bidding.
Finally, when yearly transmission charges for certain elements are not approved, the Central Transmission Utility (CTU) will calculate indicative charges based on capital costs to ensure uninterrupted billing.
Revised Charge Apportionment 
The amendments also modify the way transmission charges are apportioned within state boundaries. They specify that drawee designated interstate customers, apart from state distribution licensees, will bear a share of the aggregate adjusted charges for unscheduled bay components for the state. The share will be proportional to their general network access.
Rules for Dual-Connected Generating Stations
Generating stations with dual connectivity to both interstate and intrastate transmission systems will now have their transmission deviation computed based on their net metered ex-bus injection. This will be done in time blocks where injection exceeds the combined GNA to the ISTS and the access with the State Transmission Utility (STU). STUs must provide access data to the NLDC and the CTU to enable this calculation.
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No ISTS Charges Waiver for Solar, Wind Projects Commissioned after June 2028

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					</table>With just over two months to go before the interstate transmission system (ISTS) charges waiver ends, the Indian renewable energy project developers are keeping their fingers crossed for an extension.
The ISTS-charges waiver will end on June 30, 2025. While the waiver is in effect, commercial and industrial consumers can access renewable energy from various states at a more affordable price.
The waiver was intended to foster renewable energy transition by lowering generation costs and help India reach its 500 GW goal of non-fossil fuel energy capacity by 2030.
In 2024, the <a href="https://cercind.gov.in/" target="_blank" rel="noopener">Central Electricity Regulatory Commission</a> <a href="https://www.mercomindia.com/cerc-amends-regulations-waiver-applicability" target="_blank" rel="noopener">expanded</a> the transmission charges waiver eligibility by adding renewable energy generation systems based on offshore wind to the energy sources list, which already includes hydropower generation.
About 3 GW projects were auctioned in 2023, which are yet to sign power purchase agreements (PPA). Rajasthan has the highest capacity, with 18% of the projects with PPAs yet to be signed, followed by Madhya Pradesh with 7% and Karnataka with 4%. Around 13 GW projects, which were auctioned in 2023, have signed PPAs but have not been commissioned yet due to several factors.
These projects will lose the benefit of the waiver, pushing their project costs significantly.
“The uncertainty around the ISTS waiver extension has brought project development to a near standstill. Without an extension, India’s 2030 renewable energy targets are at serious risk. Many projects won’t be financially viable, and the momentum the industry has built over the years could slow dramatically. With so much geopolitical uncertainty already in play, this the time for India to shine as a leading destination for renewable energy investments by providing policy support, stability and clarity that the market is urgently seeking,” said Raj Prabhu, CEO of Mercom Capital Group.<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/ists-indepth-1-.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-78902 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/ists-indepth-1-.png" alt="" width="632" height="405" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/ists-indepth-1-.png 632w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/ists-indepth-1--300x192.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/ists-indepth-1--624x400.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/04/ists-indepth-1--600x384.png 600w" sizes="auto, (max-width: 632px) 100vw, 632px" /></a>
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Developers Push for Extension
The government has already <a href="https://www.mercomindia.com/no-ists-charges-solar-wind-december-2022" target="_blank" rel="noopener">extended</a> the waiver multiple times since 2016. The last waiver extension was issued in 2022 for projects to be commissioned by June 30, 2025. After this deadline, 25% of the applicable ISTS charges will be <a href="https://www.mercomindia.com/ists-charges-levied-solar-wind" target="_blank" rel="noopener">levied</a> on projects commissioned between July 1, 2025, and June 30, 2026. Increased by 25% annually, 100% of ISTS charges will be levied from July 1, 2028.
Developers and independent power producers hope for another extension. However, if recent tenders are any indication an extension appears unlikely. Terms of recent tenders specify that projects located outside the state must quote ISTS charges and transmission losses, over and above the tariff.
A developer commented, “We are in a ‘wait and watch’ situation. We see the power ministry has stated that where there is a genuine delay, supported by evidence, some concessions will be provided, but it has refrained from granting a blanket extension of the exemption.”
The developer contended that another extension is crucial. IPPs and developers have experienced massive delays in converting bids to power purchase agreements (PPAs). “There is a huge backlog of auctions where PPAs are yet to be signed due to delays relating to land acquisition and permits, infrastructure deficits, etc.”
These delays can cause huge losses to the bidders. “If a developer placed a bid assuming the ISTS waiver would apply, and if the waiver is no longer available, it would be unfair to penalize the developer, especially since the bidder didn’t cause the delay,” goes the refrain of renewable energy developers.
Kannan Krishnan, Managing Director, <a href="https://www.jakson-green.com/" target="_blank" rel="noopener">Jakson Green</a>, made out a case for another ISTS charges waiver extension. “With more than 50 GW of PPAs yet to be signed, the burden of ISTS charges will further slow down the offtake. The government needs to extend the waiver until the PPA backlogs are cleared to enable projects to be installed.”
Timely government action is key, according to developers. As Ateesh Samant, COO of <a href="https://www.oysterrenewable.com/" target="_blank" rel="noopener">Oyster Renewable Energy</a>, put it, “Timely communication about the extension from the government is certainly beneficial, as it allows the entire ecosystem to align expectations and planning horizons. The renewable industry has matured significantly since this waiver was first implemented, and we’re now better positioned to absorb policy transitions through technological advancements and business model innovations.”
Market Implications 
Stakeholders estimate a huge impact on the market if the waiver is not extended. Those with delayed PPAs will suffer from losses, increasing generation costs, and infrastructure bottlenecks.
“If the exemption isn’t extended, we estimate the cost impact to be around ₹0.40 (~$0.0047)/kWh- ₹0.50 (~$0.0059)/kWh. That’s significant, especially for solar projects bidding around ₹2.40 (~$0.028)/kWh to ₹2.50 (~$0.029)/kWh. Losing ₹0.40 (~$0.0047)/kWh to ₹0.50 (~$0.0059)/kWh (16% to 17% decrease) can bring the effective tariff down to ₹2 (~$0.023)/kWh. That can seriously affect the financial viability of projects,” according to one estimate by a developer.
For developers who factored in the ISTS exemption in their bids, its absence can be significant.
Developers believe that if the waiver is not extended, the government’s planned 50 GW annual tendering trajectory until 2030 could be in jeopardy.
“It could adversely affect the renewable energy sector, signaling a lack of sustained policy commitment. Such a move could undermine the confidence of offtakers and financing institutions, which is crucial for the sector’s growth. It will slow down our growth towards the ambitious target of 500 GW from non-fossil fuel sources by 2030,” said Krishnan.
Samant said that if the waiver is not extended, the market will go through a period of adjustment if not disruption. “Project economics would certainly be recalibrated, with potential tariff adjustments of ₹0.70 (~$0.0082) &#8211; ₹1.20 (~$0.014)/kWh over the next three years, when the full impact of the removal of the waiver kicks in, depending on the source of energy.”
While the deadline is only weeks away, there has been silence from the government so far.
A few developers have started to plan in case there is no extension. “We’ve been strategically preparing for multiple scenarios regarding the ISTS waiver. We’ve begun diversifying our project pipeline geographically, increasing our focus on intrastate projects where we can co-locate generation closer to consumption centers,” said Samant.
Another developer noted, “While it seems a bit unlikely that there will be an extension, the government works at its own pace. The market is currently apprehensive; there’s a widespread belief that the government might go ahead and extend it for a meaningful period. But despite that perception, decisions are not being made on that assumption.”
The Indian solar sector is no stranger to market fluctuations and policy shifts. What the industry needs now is clarity. At a minimum, the government should communicate its decision on the ISTS waiver quickly so the companies can plan effectively and minimize disruptions to ongoing and upcoming projects.

Without ISTS Waiver Extension, India’s 2030 Renewable Energy Goals Will Be at Risk

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					</table>Nearly a year after the Ministry of Power (<a href="https://powermin.gov.in/" target="_blank" rel="noopener">MOP</a>) extended the timeline and <a href="https://mercomindia.com/ists-charges-levied-solar-wind/" target="_blank" rel="noopener">widened</a> the scope for waiver of the interstate transmission system (ISTS) charges for renewable energy projects, the expected surge in the open access solar market has not materialized because the Central Electricity Regulatory Commission (<a href="https://cercind.gov.in/">CERC</a>) has not included the provisions in relevant amendments.
This has caused uncertainty for developers leading to slow progress in some projects. An executive from an open access developer said, &#8220;Developers are in a fix. If they build their projects based on the MoP order, they could suffer if CERC decides not to incorporate them. But if projects are held back until CERC&#8217;s regulations are finalized, we might not have enough time to avail 100% ISTS waiver.&#8221;
So far, CERC has released a draft amendment to the Sharing of Inter-State Transmission Charges and Losses (First Amendment) Regulations, 2022, but it does not include the developer-friendly provisions laid out in last November&#8217;s MoP order.
In stakeholder comments, MoP <a href="https://cercind.gov.in/2022/draft_reg/Sharing-Regulations_Amend-2022/MOP-Additional-comments.pdf" target="_blank" rel="noopener">wrote</a> to CERC earlier this month, &#8220;It is observed that the proposed supplementary amendment also is not in line with the provisions regarding waiver of transmission charges as per aforesaid MoP orders.&#8221; The letter noted that the ministry had written to CERC in August as well, urging it to include the provisions of its order in the regulations.
Emphasizing the scale of uncertainty over projects, another industry source said, &#8220;Developers are building close to 1 GW of ISTS projects in Rajasthan. They have also received the connectivity for it, but the regulatory uncertainty is holding back the projects from going ahead full steam.&#8221;
The ISTS charges waiver offers significant cost benefits to open access consumers. A commercial and industrial (C&amp;I) unit stands to save around ₹0.50 (~$0.006)/kWh in ISTS charges when procuring renewable power. For a C&amp;I consumer with a 50 MW requirement, the ISTS charges could be over ₹70 million in a year, assuming the unit runs for 8 hours a day for 365 days.
Power Ministry&#8217;s Order on ISTS Waiver
MoP&#8217;s order last year encouraged capacity addition through ISTS open access projects by bringing in private investment. The ministry extended the commissioning date for solar and wind energy projects by two years to June 30, 2025, as an eligibility criterion to avail of ISTS charges waiver for 25 years. Further, pumped hydro storage projects and battery energy storage systems (BESS), along with solar and wind energy, were also included in the waiver.
While the earlier ISTS charges waiver was applicable only for DISCOMs procuring power through competitive bidding, the ministry&#8217;s order extended it for captive use, power exchanges, and bilateral agreements.
The ISTS charge waiver is contingent on the commissioning time and progressively reduces every year. Projects commissioned by June 30, 2025, can avail of a 100% waiver on the ISTS charges. From then on, the extent of waiver declines progressively, as illustrated in the chart below &#8211;
<img loading="lazy" decoding="async" class="aligncenter wp-image-43551" src="https://mercomindia.com/wp-content/uploads/2022/10/ISTS-Charges-Chart.png" alt="ISTS Charges Chart" width="600" height="176" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/ISTS-Charges-Chart.png 680w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/ISTS-Charges-Chart-300x88.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/ISTS-Charges-Chart-650x191.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/ISTS-Charges-Chart-624x184.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/ISTS-Charges-Chart-600x176.png 600w" sizes="auto, (max-width: 600px) 100vw, 600px" />
Boost to ISTS-connected Open Access 
The ISTS charges waiver allows C&amp;I consumers another power procurement option on the table. For instance, many consumers based in Industrialized states with expensive land, like Haryana and Maharashtra, would prefer third-party solar open access from projects in Rajasthan or Gujarat. But ISTS charges make it prohibitive for them.
The current model of solar open access is almost entirely limited to captive/group captive or third-party projects developed in the same state where the C&amp;I consumers are based.
&#8220;Currently, Delhi Metro is the only C&amp;I consumer for inter-state open access as it buys power from the solar park in Rewa in Madhya Pradesh,&#8221; a source said. However, developers say that many consumers, especially those with large energy requirements, are looking at the ISTS open access option.
The open access arrangement saves C&amp;I consumers from high distribution companies (DISCOM) charges, especially the cross-subsidy component. The intra-state model could be restrictive due to the scarcity of land or investment required for building captive units.
Consumer interest in ISTS open access projects is reflected in the recent announcement by <a href="https://mercomindia.com/amazon-solar-power-purchase-agreements-420-mw-india/" target="_blank" rel="noopener">Amazon</a>, which roped in three developers for 420 MW solar projects in Rajasthan.
Industry sources said that apart from resolving the prevailing uncertainty, the state governments must reform their ISTS regulations to maximize the open access opportunity. &#8220;Very few states have open access projects. And where open access projects are present, the interstate policies are not impactful enough to make any difference to the business,&#8221; another developer added.
Large solar parks that provide power to other state DISCOMs have been the mainstay of solar capacity addition in India. The ISTS charges waiver for bilateral and captive projects aims to provide a cheaper source of renewable power for the industry, promote private investment in the sector and unlock large capacity additions.
&#8220;Nothing kills investments like uncertainty. Unfortunately, delays in decision-making fester uncertainty and bog down growth, which has become all too common in the solar industry. The industry needs decisions to be taken swiftly on pending regulations and issues to remove bottlenecks and provide confidence to investors,&#8221; said Raj Prabhu, CEO of Mercom Capital Group.

CERC Yet to Act on ISTS Charges Waiver for Open Access Renewables Proposed by Ministry of Power

In a recent order, the Delhi Electricity Regulatory Commission (<a href="http://www.derc.gov.in/" target="_blank" rel="noopener">DERC</a>) stated that waste to energy generation projects in the national capital territory (NCT) of Delhi will be exempted from certain applicable open access and deviation charges for intra-state scheduling purposes of procurement from these projects.
The exemptions will be applicable for the useful life of the existing projects. It will also apply on future projects commissioned on or before March 31, 2022, and also on those for which the power purchase agreements (PPAs) have been signed on or before March 31, 2022.
The Delhi commission has stated that waste to energy projects in the NCT will be exempted from wheeling charges, transmission charges, regulatory asset surcharge, pension trust surcharge, and cross subsidy surcharge on the sale of electricity within the NCT under open access regulations.
The DERC has also exempted the waste to energy projects from any commercial or financial implication in case of deviation from the scheduled power under the deviation settlement mechanism from the date of the commissioning of the project.
According to the order, the actual generation from waste to energy projects will be treated as scheduled generation. An existing project with a PPA cannot terminate it in order to avail these exemptions.
In its order, the commission stated, “The purpose of waste to energy is to dispose the waste and divert from dump for protecting the environment. Such projects will also aid the objectives of Swachh Bharat Mission as well as Namami Gange Mission through conversion of waste to energy. Moreover, the quantum of waste to energy generated is minimal and has extremely limited operational precedence.”
<a href="https://mercomindia.com/delhi-power-development-fund-transmission/" target="_blank" rel="noopener">Recently</a> , the DERC issued draft regulations which state that the transmission systems in the region that are aimed at easing congestion in intra-state transmission systems can now receive funding from the Power System Development Fund of Delhi.

Waste to Energy Projects in Delhi to be Exempt from Open Access Deviation Charges

The Solar Energy Corporation of India (<a href="http://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>) has invited trading licensees to participate in a tender for providing support services to facilitate the trading of power at SECI, New Delhi. The bid‑submission deadline is December 11, 2017.
Barred from participation are technical and financial joint ventures (JVs) as well as consortiums of companies. In addition, only Category I or Category II trading licensees registered by the Central Electricity Regulatory Commission (CERC) are allowed to participate in the tender.
The successful bidder (a trading licensee) will be required to provide an adequate amount of skilled manpower that meet the necessary qualifications and have relevant experience – including experience handling inter-state power trading – to handle the various responsibilities involved in trading transactions.
The selected trading licensee will be responsible for managing SECI’s control room and all power scheduling related activities. The trading licensee will be responsible for complying with the CERC’s regulations and norms for power trading and will also assist SECI in its compliance, wherever required.
The initial contract period will last two years, with the option for a year-long extension available based on the satisfactory performance of the contractor (trading licensee).
SECI has said that if the power trading control room must be shifted to another place in India, that the trading licensee will then discharge its services at the new premises at no additional cost to SECI. The trading licensee would also be responsible for assisting SECI in developing the required infrastructure at the new location.
SECI’s latest move is a novel idea. SECI conducts most of India’s renewable energy auctions and, in many cases, it is also the PPA signatory. Estimates from the Ministry of New and Renewable Energy (MNRE) show that under the SECI’s viability gap funding (VGF) program 400 MW of operational solar projects under NSM Phase-II, Batch 2 are for Interstate operations; another <a href="https://mercomindia.com/seci-tenders-750-mw-solar-bhadla-solar-park-leverage-ists-waiver/" target="_blank" rel="noopener">750 MW</a> of solar has been tendered under the NSM Bhadla-UP program; and <a href="http://mercomcapital.com/seci-invites-tenders-to-set-up-1000-mw-of-interstate-transmission-system-connected-wind-projects" target="_blank" rel="noopener">1,000 MW</a> of wind power has been tendered. All three of the tendered projects will have the ability to conduct interstate operations in order to ensure that 100 percent of their capacity can be carried out.
If all projects are allocated and get commissioned within 13 months of the signing of the PPAs in their present form, then the total quantum of annual energy transactions (for 2,150 MW) – assuming a 19 percent capacity utilization factor (CUF) for the solar/wind projects – can be estimated at approximately 3,578 million units.
This latest tender could create an avenue for SECI to profit if all of the trading is done transparently and professionally.
According to <a href="https://mercomindia.com" target="_blank" rel="noopener">Mercom India Research</a>, SECI has also tendered another <a href="https://mercomindia.com/seci-tenders-1000-mw-ists-connected-wind-projects-tranche-ii/" target="_blank" rel="noopener">1,000 MW</a> of ISTS-connected wind power projects under Tranche-II in Jun 2017, and received a winning low bid of <a href="https://mercomindia.com/wind-becomes-competitive-solar-tariff-drops-record-low-%E2%82%B92-64-kwh/" target="_blank" rel="noopener">₹2.64 (~$0.0413)/kWh</a> quoted in an October 2017 auction.
In <a href="https://mercomindia.com/waiver-period-inter-state-transmission-charges-losses-solar-projects-extended-december-31-2019/" target="_blank" rel="noopener">June 2017</a>, the waiver period for ISTS charges and losses for solar projects was extended to December 31, 2019.

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