Archive · 6 Aug 2025
ISTS Charge Waiver End Impacts Renewable Energy Projects
Imagine the government was helping solar and wind farms by not charging them extra fees to send electricity across the country.
This help, called a waiver, was supposed to end, but it's now over.
This change might affect about 26 gigawatts of renewable energy projects that were still being built.
Now, some projects might have to pay these fees, which could make them less profitable.
The projects that finish after the deadline will get less help, and this could affect how much money the projects make in the long run.
ISTS charge waiver for solar and wind projects ended on June 30, 2025.
Around 26 GW of renewable energy projects may be impacted by the end of the waiver.
Projects commissioned after the deadline will receive a phased reduction in benefits.
Developers may be liable for ISTS charges if delays are their fault.
The reduction in waiver could affect project cash flow and debt service coverage.
- Who
- Renewable energy project developers and offtakers.
- What
- End of inter-state transmission fee waiver for solar and wind projects.
- When
- The deadline for the waiver ended on June 30, 2025.
- Where
- India
- Why
- To encourage renewable energy development, but now phasing out the waiver.
Developers
Offtakers
Financial Impact
Developers
Will see a moderation in cash flow and potentially affect debt service coverage ratio.
Offtakers
N/A
- ISTS Charge Waiver End Date
- June 30, 2025
- Impacted Projects
- Around 26 GW
- Full Exemption Duration
- 25 years for projects commissioned by June 30, 2025
- Partial Waiver (June 2026)
- 75%
- Partial Waiver (June 2027)
- 50%
- Partial Waiver (June 2028)
- 25%