Tuesday, April 23, 2024
HomeBusinessGovt extends transmission charge waiver for solar and wind projects

Govt extends transmission charge waiver for solar and wind projects

Date:

Related stories

Dive Deeper into Penetration Testing

The significance of penetration testing companies is undeniable due...

Buying Real Estate: Cash Or Financing- New England Home Buyers

You’re ready to buy your first rental property. One...

The Luck of the Draw: Gambling Superstitions and Rituals from Across the Globe

Gambling is one of the most superstition-laden activities in...

The Digital Metamorphosis of Internet-Based Gambling

The online casino industry has come a long way...

The Allure of Anonymous Crypto Gaming

The concept of anonymity is deeply ingrained in the...

[ad_1]

However, ISTS transmission charges shall be levied gradually for PSP and BESS projects, rising 25% incrementally every three years to reach 100% from the twelfth year onwards.

To encourage renewable power projects, the government has allowed solar and wind-based generation plants to avail inter-state transmission (ISTS) charge waivers for units to be commissioned within June 30, 2025. The waiver was initially available for solar and wind projects scheduled for installation within March 21, 2022, and in August 2020, the benefit was extended till June 2023.

The move is seen to help about 50,890 MW of RE projects that are currently under various stages of implementation. At present, the current installed RE capacity in India is 95,660 MW, including 41,090 MW of solar and 39,440 MW of wind power plants.

Through its latest order on Monday, the Union power ministry said the “waiver of ISTS charges has also been allowed for hydro pumped storage plant (PSP) and battery energy storage system (BESS) projects to be commissioned up to June 30, 2025”. These projects will benefit from the waiver only if at least 70% of the electricity used by these systems are supplied from wind or solar power plants.

However, ISTS transmission charges shall be levied gradually for PSP and BESS projects, rising 25% incrementally every three years to reach 100% from the twelfth year onwards.

The government clarified that state-run transmission systems located in an intervening state, which is used to ferry inter-state renewable energy-based electricity, will also have to offer transmission charge waiver to the buyers of green energy. “The transmission charges of such intra-state transmission system shall be reimbursed by the central transmission utility,” the Union power ministry said. Transmission charges add about Rs 0.20-0.50 per unit to every unit of thermal power. ISTS charge waivers are recovered by transmission utilities through higher tariffs on conventional electricity paid by state-run power distribution companies.

See also  Property registrations in Mumbai recover sharply in June from lockdown lows of April and May: Knight Frank

To encourage RE trading on the power exchanges, ISTS charges have also been waived for trading electricity supplied from solar, wind, PSP and BESS projects in green term ahead market and green day-ahead market for two years till June 30, 2023. The policy of waiving this charge for RE was designed to make solar and wind more attractive for cash-strapped discoms.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.



[ad_2]

Source link

Bellie Brown
Bellie Brownhttps://businesstimes.org
Hi my lovely readers, I am Bellie brown editor and writer of Businesstimes.org. I write blogs on various niches such as business, technology, lifestyle., health, entertainment, etc as well as manage the daily reports of the website. I am very addicted to my work which makes me keen on reading and writing on the very latest and trending topics. One can check my more writings by visiting Cleartips.net

Latest stories