NSEFI requested MNRE to extend the waiver of ISTS charges and losses

PI
06/06/2020
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Apex solar body NSEFI in a letter asked MNRE for an immediately extension of 12 months on the sunset date of December 2022, towards waiver of ISTS charges and losses.

NSEFI reasoned that the projects development pipeline and execution on ground are impacted by the corona virus pandemic and are expected to delay further, in the country.

As India is currently gripped under the COVID-19 pandemic, the country’s apex solar body, National Solar Energy Federation of India (NSEFI) has requested the Ministry of New and Renewable Energy (MNRE) to extend the wavering of inter-state transmission system (ISTS) charges along with renewable energy losses.

NSEFI in a letter addressed to MNRE Secretary on Friday asked for an immediately extension of 12 months on the sunset date of December 2022, that had been allocated towards waiver of ISTS charges and losses, as the country is facing the disruptions on account of COVID 19 pandemic.

In a letter to MNRE the NSEFI stated that, that planning for capacity addition, development pipeline and execution on ground are impacted by the pandemic and are expected to delay further. Due to this all stakeholders including transmission system developers, renewable IPPs and bidding entities, are affected by this delay.

As per NSEFI, the ISTS charges waiver means a socialization of cost among market participants rather than being just borne by the purchaser of the renewable energy.

The Ministry of Power has notified the waiver under the Tariff Policy, 2016, in its Order dated 30 September, 2016. In a separate Order issued later, it has also informed that the applicability of this scheme is extended for projects commissioned till 31 December 2022.

The waiver on solar and wind capacity commissioned till December 2022 is widely considered as a potent tool to encourage for setting up the projects in states that have a greater potential for renewable energy along with suitable availability of land for setting up of renewable projects.

Currently, India stands at 79 GW of renewable generation capacity which includes 35 GW of wind and 26 GW of solar energy. During its second term, the Central Government has restated the target of 175 GW of renewable energy from 100 GW that is to be achieved by 2022.