India confirms waiving of inter-state transmission charges for wind and solar

Facebook
Twitter
LinkedIn
Reddit
Email
FlickrL Tapas Ganesh

India’s Ministry of Power has confirmed previously announced plans to waiver inter-state transmission charges and losses for both wind and solar projects won through competitive bidding.

The move, suggested 12 months ago, is aimed at maintinaing the progress of renewables as local grids become constrained by the increasing penetration of alternative sources of energy.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The ministry said it is waiving the charges and losses for solar projects commissioned by 30 June 2017 and for wind projects commissioned by 31 March 2019. Wind projects have yet to be awarded through competitive bidding, hence the later deadline.

Consultancy firm Mercom Capital Group said projects selling their power through the inter-state transmission system (ISTS) would benefit. Under the current trajectory, the spread of renewable power across India is uneven leading to the need for some developers in highly concentrated areas of renewables to sell power between states.

Ministry of New and Renewable Energy (MNRE) sources told Mercom that waiving the charges would reduce solar power tariffs by roughly 10% in various locations. It should also help to hasten the building of the major Green Energy Corridors plan, which will help transmission of renewables across the whole country.

Raj Prabhu, Mercom chief executive, said: “This policy is good news for large-scale solar in the short-term. The Ministry of Power should take the next step and extend the deadline by a few years to help solar projects get developed in resource rich areas and spread solar power consumption across the country. Low module prices along with the transmission waiver could help some of the low bid solar projects become workable if they are able to commission them by June of next year.”

The new policy affects power sold via the ISTS, but not power sold to local distribution companies (Discoms). Unfortunately, news of Discoms failing to prioritise solar and not purchasing solar power has surfaced of late, with energy minister Piyush Goyal even citing the issue last week. However, Mercom said that now projects have an option of selling power to the national grid without incurring transmission charges and losses.

From another perspective, buying renewable power through the ISTS will also help some states to achieve their Renewable Purchase Obligation (RPO).

Read Next

September 16, 2025
IB Solar is investing INR30 billion (US$340 million) in a 4GW TOPCon solar cell and module manufacturing plant in Jewar, Uttar Pradesh.
September 15, 2025
Norwegian energy firm Statkraft has agreed to divest a portion of its renewable energy portfolio to Serentica Renewables.
September 15, 2025
Vikram Solar has secured a contract to supply 200MW of modules to AB Energia, a domestic solar engineering, procurement, and construction (EPC) solutions provider. 
September 12, 2025
ACME Venus Urja has secured INR3.8 billion (US$43 million) to develop and construct a solar-plus-storage project in Barmer, Rajasthan.
September 10, 2025
Indian solar module manufacturer Vikram Solar reported a 79.7% year-on-year increase in revenue for the first quarter of FY26.
September 10, 2025
The CEFC has said that a coordinated approach to transmission in Pilbara, Western Australia, could save more than AU$30 billion over 25 years.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines