Transmission charge waiver to solar, wind power till March 2022: MoP

With a view to giving a boost to clean energy sources, the government has extended the waiver of inter-state power transmission charges and losses for the solar and wind power projects commissioned till 31 March 2022.  The waiver was earlier available to solar projects commissioned till 31 December 2019 and to wind power projects commissioned till 31 March 2019.

According to an order issued by the power ministry, “For generation projects based on solar and wind resources, no inter-state power transmission charges and losses will be levied on the transmission of the electricity through inter-state transmission system for sale of power by such projects commissioned till 31 March 2022.”

The waiver will be available to these projects for 25 years from the date of commissioning provided the developers sign power purchase agreements with entities, including discoms, for sale of power for compliance of their renewable purchase obligation, the order said.

The order also provides that the waiver would be available to only those projects which are awarded through competitive bidding process as per the guidelines issued by the central government.

Earlier the incentive was not available to firms other than power distribution companies. Thus, other entities procuring clean energy from these projects were at the disadvantageous position. Now they can also avail the benefit. It also provides that these new conditions for waiver of transmission charges and losses irrespective of purchasing entity will be applicable prospectively, the order dated 13 February 2018, said.

The order assumes significance in view of India’s ambitious target of having 175GW of renewable energy capacities including 100GW of solar and 60GW of wind energy. The central government has planned to auction 40GW of solar energy capacities and 20GW of wind projects in 2018-19 and 2019-20 to meet the tall order.