Ministry of Power waives inter-state transmission charges and losses on transmission of the electricity generated from solar and wind sources of energy; sets criteria for waiving off charges

Ministry of Power (“Ministry”), Government of India through an Order dated 5th August, 2020 has waived off inter-state transmission charges and losses on transmission of the electricity generated from solar and wind sources of energy under the revised Tariff Policy, 2016.

Para 6.4 (2) of the revised Tariff Policy provides that –
“In order to further encourage renewable sources of energy, no inter-State transmission charges and losses may be levied till such period as may be notified by the Central Government on transmission of the electricity generated from solar and wind sources of energy through the inter-state transmission system for sale.”

Therefore, the Ministry has decided that no inter-state transmission charges and losses will be levied on transmission of the electricity generated from following power plants for a period of 25 years from the date of commissioning of the power plants which meet the following criteria –

1. Power plants using solar and wind sources of energy, including solar-wind hybrid power plants with or without storage commissioned till 30th June, 2023 for sale to entities having a Renewable Purchase Obligation (RPO), irrespective of whether this power is within RPO or not, provided that in case of distribution licensees, the power has been procured competitively under the guidelines issued by the Central Government.

2. Solar PV power plants commissioned under “MNRE’s Central Public Sector Undertaking (CPSU) Scheme Phase-II” (Government Producer Scheme).

3. Solar PV power plants commissioned under SECI Tender for manufacturing linked capacity scheme for sale to entities having RPO, irrespective of whether this power is within RPO or not.

Background

The Ministry had earlier given waiver by many orders but by an Order dated 6th November, 2019 the waiver date was extended from 31st March, 2022 to 31st December, 2022. Therefore, the Ministry in supersession of the earlier order has decided that no inter-state transmission charges and losses will be levied on transmission of the electricity generated from the plants meeting certain criteria as mentioned above.

 

Source : Ministry of Power

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