After much fanfare on incentives for green energy projects, over 5.5 GW of wind energy projects will miss out on the entire waiver on inter-state transmission system (ISTS) charges due to delays in connectivity approvals and natural calamities.

The development has put wind energy projects worth ₹38,695 crore in jeopardy. As per the current framework, the ISTS waiver, which has been a key incentive for renewable energy developers, is available only to projects commissioned by June 30.

Several developers had applied for ISTS connectivity before the June 2023 deadline to qualify under the current waiver policy. However, in many cases, the effective dates for grid connectivity are being issued for 2026 or later, owing to transmission planning and implementation delays, said sources.

Connectivity approvals for wind and hybrid projects totalling 5.5 GW across Madhya Pradesh, Karnataka, Andhra Pradesh, Maharashtra, Gujarat and Rajasthan have been granted under the general network access (GNA) framework, but are yet to become operational.

Regulatory delays

Industry associations and developers have raised concerns over significant regulatory delays in issuing ISTS connectivity approvals. These delays threaten the eligibility of wind projects for a 100 per cent ISTS charge waiver, a 25-year cost advantage available only to projects that meet a commissioning deadline of June 30.

The uncertainty over the ISTS waiver starkly contrasts with the government’s goal of increasing renewable energy’s share in total energy generation.

Union Power Minister Manohar Lal Khattar said at a recent conference that India added 34 GW of generation capacity in FY25, the highest-ever in a single year, with 29.5 GW coming from renewable sources.

The country’s total installed power capacity now stands at 472.5 GW, up from 249 GW in 2014, with renewables accounting for 220 GW. He also stated that renewable capacity is expected to cross 50 per cent of the total mix by end of this year, up from 47 per cent as of March-end.

Significant progress

Industry bodies have made representations to the Ministry of Power, requesting that a milestone-based ISTS waiver be granted to projects that have achieved substantial development progress as on June 30 but are delayed by a few months due to factors beyond their control.

The Ministry on June 10 notified a 100 per cent ISTS waiver for hydro pumped storage projects awarded by June 2028 and for co-located battery energy storage systems commissioned within the same timeline.

In its recent representation to the Ministry of New and Renewable Energy, the Wind Independent Power Producers Association suggested that waiver must be granted to projects that have applied for connectivity before June 30, 2023, obtained financial closure at least 12 months before June 2025, or by June 2024.

Similarly, it said that projects that have acquired at least 50 per cent land for the project or placed order for wind turbine generators and/or inverters for complete contract capacity must be eligible for ISTS charges waiver.

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Published on June 24, 2025