Waiver of inter-state charges for Solar & Wind

RENEWABLE ENERGY

Waiver of inter-state charges for Solar & Wind

Energetica India

For generation projects based on solar and wind resources, no interstate transmission charges and losses will be levied on transmission of the electricity through the inter-state transmission system for sale of power by such projects commissioned till 31st March 2022.

To encourage the growth of renewable energy generation, the Ministry of Power had earlierissued order in September, 2016 stating “In order to further encourage renewable sources of energy, no inter-State transmission charges and losses may be levied till such period as may be notified by the Central Government on transmission of the electricity generated from solar and wind sources of energy through the inter-state transmission system for sale”

This was subsequently modified vide order dated June, 2017-- the waiver of inter-state transmission charges and losses on transmission of theelectricity generated from solar and wind sources of energy was available for solar projects commissioned upto 31.12.2019 and for wind projects commissioned upto31.03.2019. This  waiver was available for a period of 25 years from the date of commissioning of such projects and was available only for the projects entering into Power Purchase Agreements (PPAs) for sale of electricity to the Distribution Companies for compliance of their renewable purchase obligation. The waiver was available only to those solar and wind projects that are awarded through competitive bidding process.

The Ministry Of Power has further brought changes with provision of waiver of inter-state transmission charges and losses on transmission of the electricity generated from solar and wind sources of energy under para6.4(6) of the revised Tariff Policy, 2016

  • .For generation projects based on solar and wind resources, no interstatetransmission charges and losses will be levied on transmission of the electricity through the inter-state transmission system for sale of power by such projects commissioned till 31st March 2022.
  • Provided that the above waiver will be available for a period of 25 years from the date of commissioning of such projects
  • Provided further that the above waiver will be available for solar and wind projects entering into PPAs with all entities, including Distribution Companies, for sale of power from solar and wind power projects for compliance of their renewable purchase obligation.
  • Provided further that the above waiver will be allowed only to those solar and wind projects that are awarded through competitive bidding process in accordance with the guidelines issued by Central Government.

Energetica India speaks to industry professionals to get their feedback on this latest regulation:

Mr. Tulsi Tanti, Founder, Chairman and Managing Director, Suzlon Group

We welcome the waiver of  interstate transmission charges and losses on transmission of the electricity generated from solar and wind sources of energy by the Power ministry; the order assumes significance in view of government’s target of having 175 GW of renewable energy capacities by 2022, including 100 GW of solar and 60 GW of wind energy. Power utilities can now source wind and solar power from any other state having better solar/wind resources at a significantly lower cost and enabling them to meet their renewable purchase obligations (RPO). This gives further impetus to a huge expansion of market for Renewable energy sources to pan- India which was till now restricted to renewable resource rich states. This move will also see more IPPs participating in the next rounds of bidding as projects will look more feasible to them. We trust Govt. would accelerate the pace of development of green corridors to fully realize the potential of this notification.

Mr Sunil Rathi, Director, Waaree Energies

At the outset, the waiver of interstate transmission charges will definitely make solar more viable for DISCOMS, by taking away the added costs making it lucrative for them to purchase power from renewable energy sources. It would make it easier for companies in the sector to develop solar based power plants in resource rich states, the power generated from which, can then be distributed across the country. In addition, domestic solar manufacturers also stand to benefit from this waiver. It becomes easier for the companies to transport products between states, and aid in the growth of solar and other renewable energy as the preferred source of power in the country.

Mr. Harish Wadhva , Vice President - Sales & Marketing  Chemtrols Solar Pvt Ltd

"We welcome the recent notification by the central government of no interstate transmission charges and losses on the transmission of electricity through interstate transmission systems, for sale of power by projects commissioned till 31st of March, 2022. While it will give the DISCOMS the flexibility of purchase power from Renewable sources, it will also take away the uncertainty for an off-taker/ consumer, of a possible levy after 31st March 2019."

 

| Article published on 26/04/2018 by Rashmi Nargundkar

 
 
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