**Executive Summary**
This report outlines the Inter-State Transmission System (ISTS) framework and the specific waiver of charges for renewable energy (RE) and energy storage projects as governed by CERC regulations. It details the monitoring roles of the Central Transmission Utility (CTU) and the Central Electricity Authority (CEA) to ensure seamless grid integration. Key deadlines for 100% ISTS charge waivers range from June 2025 to December 2032, depending on the project category.
**Key Points / Main Content**
**Regulatory Framework and Governance**
* ISTS charges are governed by the CERC (Sharing of Inter State Transmission Charges and Losses) Regulations, 2020, including the 4th Amendment dated June 26, 2025.
* Grid connectivity is regulated by CERC Regulations 2022, with the CTU serving as the Nodal Agency for Connectivity and General Network Access (GNA).
* Under the Electricity Act 2003, the CTU is mandated to develop an efficient, coordinated, and economical ISTS.
**Monitoring and Infrastructure Planning**
* Progress of RE generation and ISTS is monitored through quarterly Joint Co-ordination Committee Meetings involving developers and transmission providers.
* The CTU performs monthly monitoring of critical elements with project developers to prevent mismatches.
* The CEA has planned for the integration of over 500 GW RE capacity by 2030 and notified the National Electricity Plan (Transmission) in October 2024.
* The Green Energy Corridor Scheme is currently being implemented to evacuate power from identified RE locations.
**Waiver of ISTS Charges**
* **Wind, Solar, and RHGS:** 100% waiver for projects commissioned by June 30, 2025; the waiver reduces by 25% annually thereafter for a 25-year duration.
* **Hydro Pumped Storage:** 100% waiver for 25 years for projects where construction work is awarded by June 30, 2028.
* **Battery Energy Storage Systems (BESS):** 100% waiver for 12 years for projects commissioned by June 30, 2025 (gradual reduction) or June 30, 2028, depending on the charging source.
* **Large Hydro (>25MW):** 100% waiver for 18 years for projects with PPAs signed and construction awarded between December 1, 2022, and June 30, 2025.
* **Green Hydrogen/Ammonia:** 100% waiver for 25 years for projects commissioned by December 31, 2030.
* **Offshore Wind:** 100% waiver for 25 years for projects commissioned by December 31, 2032.
**Impact Analysis**
**Renewable Energy Developers**
**Impact:** They benefit from significantly reduced operational costs through ISTS charge waivers, which do not directly impact the cost of generation.
**Action Required:** Developers must ensure project commissioning or construction awards meet the specific deadlines (e.g., June 2025 for Solar/Wind) to qualify for full waivers.
**Central Transmission Utility (CTU) and Transmission Service Providers (TSPs)**
**Impact:** Increased responsibility for monitoring and evolving interim arrangements to ensure timely power evacuation.
**Action Required:** Participate in monthly and quarterly monitoring meetings and coordinate with CEA and Grid-India to resolve non-availability of transmission systems.
**Designated ISTS Customers (Drawee DICs)**
**Impact:** These entities are responsible for sharing the ISTS charges as per CERC regulations.
**Action Required:** Comply with CERC sharing regulations for transmission charges and losses.
**Central Electricity Authority (CEA) and Ministry of Power**
**Impact:** Tasked with high-level oversight and long-term transmission planning.
**Action Required:** Monitor the implementation of the National Electricity Plan and the Green Energy Corridor to support the 500 GW RE target by 2030.
Key Entities Referenced
Central Electricity Regulatory Commission (CERC): The regulatory body governing Inter-State Transmission System (ISTS) charges, losses, and connectivity regulations, including the specific waivers for renewable energy projects.
Central Transmission Utility (CTU): The nodal agency responsible for grid connectivity, monitoring the progress of renewable energy integration, and ensuring the development of an efficient ISTS.
Electricity Act 2003: The primary legislation under which the Central Transmission Utility is mandated to ensure a coordinated and economical system of inter-state transmission.
Green Energy Corridor Scheme: A government initiative focused on implementing infrastructure for the evacuation of power from renewable energy projects in identified locations.
Central Electricity Authority (CEA): The statutory body responsible for advance transmission planning, monitoring systems, and preparing technical reports for integrating high-capacity renewable energy.
Ministry of New and Renewable Energy
Government Ensures Seamless Grid Integration
for Renewable Energy Through Strong ISTS
Framework
Posted On: 17 MAR 2026 3:27PM by PIB Delhi
The Inter-State Transmission System (ISTS) charges are governed by Central Electricity Regulatory
Commission (CERC) (Sharing of Inter State Transmission Charges and Losses) Regulations, 2020 and its
amendment thereafter. According to the 4th Amendment to the said regulations dated 26.06.2025, The
detail of ISTS charges waiver for specific categories of renewable energy and energy storage projects is
given in Annexure.
The grid connectivity is regulated by the CERC (Connectivity and General Network Access to the Inter-
State Transmission System) Regulations, 2022 as amended with defined timelines and procedures.
As per the Regulation, the Nodal Agency for Connectivity or General Network Access (GNA) to the ISTS
is Central Transmission Utility (CTU).
Progress of renewable energy (RE) generation and associate ISTS is being monitored in quarterly Joint
Co-ordination Committee Meetings by CTU wherein efforts are being made to avoid mismatches between
RE developers and transmission service providers. Further, the transmission system is also being
monitored at the level of the Ministry of Power and Central Electricity Authority (CEA).
CTU has now also been mandated to monitor the critical elements on a monthly basis with participation of
transmission developers and generation project developers.
In case of non-availability of associated transmission system, CTU in consultation with CEA, Grid-India
and TSPs, evolves alternate/interim arrangement, wherever possible, so that timely evacuation can be
provided to RE projects.
Additionally, the Government has taken the following measures to ensure timely grid connectivity and
evacuation for projects.
Green Energy Corridor Scheme is being implemented for evacuation of power from RE projects from
identified locations.
The CEA prepared a report on “Transmission System for Integration of over 500 GW RE Capacity by
2030”.
Advance transmission planning through the National Electricity Plan (Volume II: Transmission), notified
by Central Electricity Authority (CEA) in Oct, 2024.
As per CERC regulations, the ISTS charges are shared by drawee DICs (Designated ISTS Customers) and
therefore, do not have direct impact on the cost of generation of renewable energy projects. Under Section
38 (2)(c) of the Electricity Act 2003, CTU has been mandated to ensure development of an efficient,
coordinated and economical system of ISTS.***
ANNEXURE REFERRED TO IN PARTS (a) OF THE RAJYA SABHA UNSTARRED QUESTION
NO.2862 DUE FOR ANSWER ON 17.03.2026 REGARDING “WAIVER OF ISTS CHARGES FOR
RENEWABLE ENERGY PROJECT”.
Sl. Type of project ISTS Charges waiver Duration of
waiver from
No.
commissioning
date
1 Renewable Energy Generating 100% for projects 25 years
Station (REGS) based on wind or commissioned by 30th June
solar source or RHGS based wind 2025; waiver reducing 25%
and solar source annually thereafter
2 Hydro Pumped Storage Plant 100% for projects where 25 years
award of construction work by
30th June 2028
3 1. Battery ESS connected at a 1. 100% for projects 12 years
substation where no REGS is commissioned by 30th
connected or Battery ESS June 2025; waiver
connected at a substation reducing 25% annually
where REGS is connected but thereafter
Battery ESS is charged from 2. 100% for projects
Grid or source other than commissioned by 30th
REGS June 2028
2. Battery ESS connected at a
substation where REGS is
connected and is charged
from such REGS
3 Large hydro projects(>25MW) 100% for projects where date 18 years
of signing of PPA and award
of construction on or after
1.12.2022 and on or before
30.6.2025; waiver reducing
25% annually thereafter
4 Green Hydrogen /Green 100% for projects 25 years
Ammonia Plants that utilize commissioned by 31st Dec
renewable energy from Solar, 2030; waiver reducing 25%
Wind, Large Hydro or Energy annually thereafter
Storage Systems or any hybrid
combination of the
aforementioned technologies5 Off shore wind power 100% for projects 25 years
commissioned by 31st Dec
2032; waiver reducing 25%
annually thereafter
This information was submitted by Union Minister of State for New and Renewable Energy Shri Shripad
Yesso Naik in a written reply to Rajya Sabha today.
***
Navin Sreejith
(Release ID: 2241170) Visitor Counter : 130
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