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In a bid to facilitate wider execution of offshore wind energy initiatives, to promote the expansion of Green Hydrogen/Green Ammonia Projects and to encourage the offtake of renewable energy from Energy Storage System Projects, the Government plans to grant a waiver of Inter-State Transmission Charges (ISTS) charges to off-shore wind projects and extend the waiver to green hydrogen/green ammonia.

As per a notification issued by the Ministry of Power, a complete waiver of ISTS charges has been given for off-shore wind power projects commissioned on or before 31st December, 2032 for a period of 25 years from the date of commissioning of the Project. The off-shore projects commissioned from 1st January, 2033 would be given graded ISTS charges. Earlier, all wind energy projects were provided waiver upto 30.06.2025.

The government has also granted complete waiver of ISTS charges for a period of 25 years from the date of commissioning of the project, for Green Hydrogen/Green Ammonia production units, using Renewable Energy (commissioned after 8th March 2019), Pumped Storage System or Battery Storage Systems or any hybrid combination of these technologies.

To promote development of Pump Storage Plants (PSP), the criteria for availing the complete waiver of ISTS charges for PSP projects has been linked to the date of award of the project rather than commissioning of the project. This will be applicable in cases where construction work is awarded on or before 30th June, 2025.