100 Percent ISTS-charge Waiver for Co-located BESS Projects Commissioned Before June 30, 2028
The Ministry of Power has amended the ISTS charges waiver policy, granting 100 percent exemption for Hydro PSP and co-located BESS projects commissioned or awarded by June 30, 2028, under specified conditions.
June 10, 2025. By Mrinmoy Dey
The Ministry in a recent notification has stated that ISTS charges waiver for Hydro PSP projects for which the construction work has been awarded on or before June 30, 2028 shall be 100 percent.
It further added, “ISTS charges waiver for co-located Battery Energy Storage System (BESS) projects commissioned on or before June 30, 2028 shall be 100 percent, if the power from such BESS projects is consumed outside of the state, where such BESS project is commissioned.”
It further clarified that a BESS project shall be considered as co-located, only if the BESS and RE projects are connected at the same ISTS sub-station.
The notification specified that there will not be any ISTS charges waiver for Hydro PSP projects, for which the construction work awarded after June 30, 2028 and for co-located BESS commissioned after June 30, 2028.
The notification also clarified, “For BESS projects which are not co-located, the ISTS charges waiver shall be as per the extant orders issued by the Ministry of Power and CERC Regulations.”
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