The Central Electricity Regulatory Commission (CERC) has proposed extending the 25-year waiver of inter-State transmission charges (ISTS) for energy storage systems that are part of renewable energy plants. According to the draft fifth amendment to the CERC Sharing of Inter-State Transmission Charges and Losses Regulations, 2026, this enhancement aligns the waiver with the life of the renewable energy project, as opposed to only the battery's life. The commission stated that where storage forms part of a single renewable energy generation plant, the waiver will be available from the plant's commercial operation date.
India's power regulator has proposed providing transmission charge waivers to clean energy projects that have been delayed due to unavailability of transmission infrastructure. According to draft regulations from the Central Electricity Regulatory Commission (CERC), this relief would specifically benefit solar, wind and hybrid renewable energy projects that missed their commissioning timelines. The proposal represents a significant policy shift, as India had begun phasing out interstate transmission charge waivers for new solar, wind and hybrid projects from July 2025. The National Solar Energy Federation of India (NSEFI) is now urging the government to extend the ISTS charges waiver to renewable energy projects commissioned by June 2026, addressing risks from delays beyond developers' control and potentially impacting projects worth ₹5 lakh crore.
The relief would be available for projects that signed at least seven-year-long power sale contracts by December 31, 2026. As reported by Business Standard, this timeline provides a clear framework for project developers to qualify for the transmission charge waivers. The draft proposal also extends these benefits to battery storage systems that are built as part of renewable energy projects, with power supplied from the batteries receiving the same transmission-charge waiver as the renewable project itself.
The proposal addresses a critical infrastructure challenge facing India's renewable energy sector, where several clean energy projects have been stalled due to lack of transmission infrastructure. According to reports from Business Standard, this move would mark a policy roll-back from the earlier decision to phase out transmission charge waivers. The relief mechanism is designed to encourage project completion and address the transmission bottlenecks that have been hindering the growth of India's renewable energy capacity. India's renewable energy sector continues to expand with 452.69 GW total electricity capacity, supported by strong public-private collaborations and major goals including 500 GW non-fossil electricity by 2030 and net-zero emissions by 2070.
