CERC Revises Inter-State Transmission Charges, Adds Waivers for RE, Hydro and Storage Projects

The Central Electricity Regulatory Commission (CERC) has notified the fourth amendment to the 'Sharing of Inter-State Transmission Charges and Losses Regulations, 2020,' introducing key updates aimed at promoting renewable energy, battery storage, and green hydrogen projects.

The Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and Losses) (Fourth Amendment) Regulations, 2025, clarify waivers, eligibility timelines, and cost-sharing for renewable and storage projects using ISTS.

A major highlight is the extension of transmission charge waivers for renewable energy generation stations (REGS) based on wind, solar, or a hybrid of both. Projects commissioned on or before June 30, 2025, will receive a 100 percentwaiver for 25 years. Projects commissioned between July 2025 and June 2028 will get a graded benefit, reducing from 75 percent to 25 percent, with no waiver applicable after June 2028.

For offshore wind and green hydrogen or green ammonia plants, the waiver extends until December 31, 2035, following a similar graded structure. Battery Energy Storage Systems (BESS) co-located with renewable energy projects will enjoy a 100 percent waiver if commissioned by June 30, 2028, with a validity of 12 years. Standalone BESS connected without renewable pairing will have waivers on a sliding scale based on commissioning dates, with the benefit phasing out after June 2028.

Hydro-based Pumped Storage Projects (PSP) and hydro stations also receive waivers, provided construction contracts are awarded and PPAs are signed before June 2025. Hydro PSPs will get a 25-year waiver, while hydro stations will enjoy an 18-year waiver under specified timelines.

In a significant move, the amendment recognises dual connectivity viz. for projects connected to both intra-state and inter-state systems. In such cases, deviations will be calculated based on net metered injections exceeding the combined approved capacity.

The rules also stipulate that Green Hydrogen and Green Ammonia plants sourcing power predominantly (at least 51 percent) from renewable energy, hydro, or energy storage will qualify for waivers aligned with the highest eligible category they are connected to.

The Commission has introduced flexibility for projects delayed due to force majeure or grid infrastructure unavailability. Such projects, if delayed beyond June 30, 2025, may still retain waiver benefits, provided the delay does not exceed two extensions of up to six months each, subject to approval by relevant authorities or a CERC-appointed committee.

Additionally, the amendments refine the cost-sharing approach for transmission assets, including terminal bays, and streamline availability calculations based on the Tariff Regulations, 2024. The Central Transmission Utility (CTU) is tasked with determining yearly transmission charges for billing when detailed cost data is unavailable.

This amendment marks a significant push toward enhancing India’s clean energy transition, providing critical cost incentives for developers investing in renewable energy, energy storage, offshore wind, and green hydrogen infrastructure.