Supporting India's Green Energy Goals

Extending the Inter-State Transmission System waiver with clear, milestone-based criteria would help attain non-fossil fuel capacity target by 2030

- DHANENDRA KUMAR

AS INDIA RAPIDLY climbs the global economic ladder, overtaking Japan to fourth position, its ambitious goal of attaining 500 gigawatt (GW) renewable energy (RE) capacity by 2030 stands as a critical pillar in its economic growth as well as climate leadership. However, goals in the renewable sector face significant challenges. A case in point is the looming expiry of the Inter-State Transmission System (ISTS) charge waiver. We have already arrived at the point when the waiver expires. There are uncertainties in financial projections, jeopardizing nearly ₹5 lakh crore in investments and potentially stalling India's rapid clean energy ascendance.

The ISTS is the national high-voltage transmission network that facilitates the movement of electricity across states, crucial for integrating power generated from large-scale RE projects. Traditionally, using this network incurs ISTS charges—fees for transmission and losses during transfer ultimately borne by the consumer.

Recognizing the need to accelerate clean energy development, the ministry of new and renewable energy introduced waivers exempting eligible RE projects—commissioned before June 30, 2025—from these charges. This policy has helped in making renewable power competitive. It enables commercial and industrial consumers to procure green energy via open access or operate captive plants more economically while strengthening Make in India by lowering the entry barrier for manufacturers seeking affordable and clean power.