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CERC Proposes New Transmission Charge Waiver Framework for Renewable Energy and BESS

CERC has proposed retaining ISTS charge waivers for eligible renewable energy projects delayed solely due to non-availability of the inter-state transmission system, while extending waiver benefits to eligible co-located renewable energy and battery energy storage system projects and introducing reforms to support renewable energy integration.

August 01, 2026. By Mrinmoy Dey

The Central Electricity Regulatory Commission (CERC) has issued the draft Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and Losses) (Fifth Amendment) Regulations, 2026, proposing changes to the existing regulatory framework to support renewable energy deployment, battery energy storage systems (BESS) and the implementation of the General Network Access (GNA) regime.

Through the proposed amendments, CERC has introduced the definition of Renewable Energy Implementing Agency (REIA) in line with the GNA Regulations and proposed revisions to the computation of transmission deviations for entities availing GNARE and Temporary GNARE (T-GNARE). It has also proposed provisions for regional entities with dual connectivity to both the inter-State and intra-State transmission systems, requiring State Transmission Utilities (STUs) to share access details with the National Load Despatch Centre (NLDC) and Central Transmission Utility of India (CTUIL).

CERC has proposed extending inter-State transmission charge waivers to energy supplied from battery energy storage systems integrated with renewable energy generating stations (REGS) or renewable hybrid generating stations (RHGS). Where the renewable project and storage are scheduled as a single entity, the energy from the BESS would be eligible for transmission charge waiver for up to 25 years from the project's commercial operation date, in accordance with the applicable waiver trajectory.

The Commission has also proposed separate treatment for battery charging cycles. Under the draft, BESS charging from co-located renewable energy projects would continue to receive applicable transmission charge waivers, while charging from other sources would be treated under a different waiver category. The NLDC has been tasked with issuing detailed procedures for data collection and energy accounting for these charging cycles.

To facilitate market-based procurement of renewable energy, CERC has proposed allowing energy storage systems procuring power through the Green Day Ahead Market (GDAM) to count such energy towards the prescribed 51 percent renewable energy requirement, subject to certification by the concerned power exchange. For hydro pumped storage projects, compliance with the requirement would be assessed on a contract-wise basis. The NLDC would issue detailed implementation procedures for accounting of scheduled energy.

The draft regulations also propose a new transmission charge waiver mechanism for renewable energy projects delayed due to the non-availability of the transmission system. Wind, solar and renewable hybrid projects with contracts of at least seven years executed on or before December 31, 2026, would remain eligible for transmission charge waivers based on their original firm start date of connectivity, provided they achieve commercial operation within two months of the effectiveness of their GNA. Depending on the connectivity date, projects would be eligible for waiver benefits ranging from 100 percent to 25 percent, while projects with firm connectivity after June 30, 2028 would not qualify for the concession.

Further, CERC has proposed requiring projects eligible under multiple transmission charge waiver provisions to exercise a one-time choice of the applicable waiver mechanism within 15 days of achieving commercial operation. The selected option would remain binding throughout the waiver period.

The Commission has also proposed that the Implementing Agency publish revised implementation procedures within 60 days of notification following stakeholder consultation. In addition, it has proposed updating the definitions of GNARE and T-GNARE in Annexure III to align them with the GNA Regulations and empowering the Commission to issue suo motu orders and practice directions for implementation of the regulations.

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