India extends transmission charge waiver for energy storage projects until June 2028
June 10 (Reuters) - India has extended a complete waiver of inter-state transmission charges for electricity storage projects until June 2028, the power ministry said on Tuesday, as the country races to meet its ambitious clean energy targets and boost energy storage.
Purchasers, which are usually distribution companies, pay power producers for electricity, and this payment often includes a component for transmission charges.
The government announced a 100% waiver of inter-state transmission system (ISTS) charges for pumped storage hydropower projects - which use excess electricity to move water from a lower reservoir to a higher one - awarded before June 30, 2028.
The waiver will also apply to battery storage systems that are co-located with renewable energy projects and commissioned before the same date.
The Central Electricity Regulatory Commission (CERC) estimated last year that the ISTS waiver accounts for about 7% of monthly transmission charges for power purchasers, primarily state distribution companies.
The move comes as India works toward its target of installing 500 gigawatts of clean energy capacity by 2030, nearly triple its current capacity.
However, renewable energy sources such as solar and wind are intermittent and cyclical, and there is a need for storage capacity for periods when power production is not possible, India Ratings and Research said in a recent note.
India's renewable energy output hit a record 24.7 billion kWh in May, jumping 17.2% year-on-year, with clean energy's share in the overall power mix reaching an unprecedented 15.4% - the highest since record-keeping began in 2018.
While the government renewed waivers for energy storage projects, it is yet to provide a similar exemption for solar and wind projects commissioned after June 30 this year, when the policy lapses.
Separately, the power ministry on Tuesday approved a 54 billion rupees ($631.30 million) scheme to support 30 gigawatt-hour battery energy storage systems.
($1 = 85.5380 Indian rupees)
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