Latest news with #NationalSolarEnergyFederationofIndia
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Business Standard
6 days ago
- Business
- Business Standard
Solar Federation seeks extension of inter-state transmission fee waiver
The National Solar Energy Federation of India (NSEFI) has urged the government to protect the viability of numerous renewable energy projects facing risks from delays beyond the control of developers, according to a person familiar with the matter. In the letter to the advisor to the Prime Minister's Office, the federation urged that the Inter-State Transmission System (ISTS) charges waiver be extended to projects getting commissioned by June 2026 and meeting a specific criterion relating to connectivity application status, financial closure, land acquisition beyond the 50 per cent threshold, and if orders for equipment have been made. The federation, representing a broad spectrum of stakeholders across the solar value chain, stated that while the ISTS waiver, originally announced by the Ministry of Power (MoP), has played a "pivotal role in making renewable power more competitive", its delayed implementation by the Central Electricity Regulatory Commission (CERC) in February 2023 left many developers in a limbo. ISTS charges are the fees levied for using the transmission infrastructure to move electricity between states. They are imposed to cover the costs relating to building and maintaining transmission lines and other infrastructure required for interstate electricity transfer. According to an energy expert, industry estimates state that renewable energy projects of nearly Rs 5 lakh crore would be impacted if the waiver of ISTS charges is not extended. "Several RE developers made early investments, securing land, achieving financial closure, and signing definitive agreements based on the original MoP notification," the federation said. However, due to aspects like the nearly two-year lag in CERC's ratification and other uncontrollable factors, these developers are now at risk of missing the commissioning deadline of June 30, 2025, making them ineligible for the waiver. The federation flagged multiple aspects, including prolonged approvals under Section 68(1) of the Electricity Act due to an ongoing Supreme Court case on Great Indian Bustard conservation, delay in transmission planning and connectivity effectiveness, and delayed commissioning of critical transmission infrastructure. "Several developers applied for ISTS connectivity well before June 2023, in line with the ISTS waiver policy timelines. However, the effectiveness dates for granted connectivity are being issued much later, often in 2026 or 2027, due to delays in transmission system planning and execution," the federation said. The federation has proposed a milestone-based eligibility framework for the waiver. It has recommended that projects that had applied for transmission connectivity on or before June 30, 2023, achieved financial closure, acquired at least 50 per cent of the land required for their development, and placed orders for wind turbine generators and/or inverters must be considered for the purpose of availing the ISTS waiver. It argued that the approach is consistent with CERC's regulations and recent Ministry of Power notifications granting waiver flexibility to pumped storage and battery storage projects. "The proposed eligibility criteria will ensure that only serious and committed renewable energy developers, who had factored the ISTS waiver into their project design and commercial commitments, benefit from this extension," the federation said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
6 days ago
- Business
- Time of India
Solar body urges govt to extend transmission fee waiver for delayed projects
The National Solar Energy Federation of India ( NSEFI ) has urged the government to protect the viability of numerous renewable energy projects facing risks from delays beyond the control of developers, according to a person familiar with the matter. In the letter to the advisor to the Prime Minister's Office, the federation urged that the Inter-State Transmission System (ISTS) charges waiver be extended to projects getting commissioned by June 2026 and meeting a specific criterion relating to connectivity application status, financial closure, land acquisition beyond the 50 per cent threshold, and if orders for equipment have been made. The federation, representing a broad spectrum of stakeholders across the solar value chain, stated that while the ISTS waiver, originally announced by the Ministry of Power (MoP), has played a "pivotal role in making renewable power more competitive", its delayed implementation by the Central Electricity Regulatory Commission (CERC) in February 2023 left many developers in a limbo. Also Read: NTPC Group starts Nokh Solar PV Project, total capacity reaches 80,708 MW ISTS charges are the fees levied for using the transmission infrastructure to move electricity between states. They are imposed to cover the costs relating to building and maintaining transmission lines and other infrastructure required for interstate electricity transfer. According to an energy expert, industry estimates state that renewable energy projects of nearly Rs 5 lakh crore would be impacted if the waiver of ISTS charges is not extended. "Several RE developers made early investments, securing land, achieving financial closure, and signing definitive agreements based on the original MoP notification," the federation said. However, due to aspects like the nearly two-year lag in CERC's ratification and other uncontrollable factors, these developers are now at risk of missing the commissioning deadline of June 30, 2025, making them ineligible for the waiver. The federation flagged multiple aspects, including prolonged approvals under Section 68(1) of the Electricity Act due to an ongoing Supreme Court case on Great Indian Bustard conservation, delay in transmission planning and connectivity effectiveness, and delayed commissioning of critical transmission infrastructure. "Several developers applied for ISTS connectivity well before June 2023, in line with the ISTS waiver policy timelines. However, the effectiveness dates for granted connectivity are being issued much later, often in 2026 or 2027, due to delays in transmission system planning and execution," the federation said. The federation has proposed a milestone-based eligibility framework for the waiver. It has recommended that projects that had applied for transmission connectivity on or before June 30, 2023, achieved financial closure, acquired at least 50 per cent of the land required for their development, and placed orders for wind turbine generators and/or inverters must be considered for the purpose of availing the ISTS waiver. It argued that the approach is consistent with CERC's regulations and recent Ministry of Power notifications granting waiver flexibility to pumped storage and battery storage projects. "The proposed eligibility criteria will ensure that only serious and committed renewable energy developers, who had factored the ISTS waiver into their project design and commercial commitments, benefit from this extension," the federation said.
Time of India
6 days ago
- Business
- Time of India
Solar body urges govt to extend transmission fee waiver for delayed projects
The National Solar Energy Federation of India ( NSEFI ) has urged the government to protect the viability of numerous renewable energy projects facing risks from delays beyond the control of developers, according to a person familiar with the matter. In the letter to the advisor to the Prime Minister's Office, the federation urged that the Inter-State Transmission System (ISTS) charges waiver be extended to projects getting commissioned by June 2026 and meeting a specific criterion relating to connectivity application status, financial closure, land acquisition beyond the 50 per cent threshold, and if orders for equipment have been made. The federation, representing a broad spectrum of stakeholders across the solar value chain, stated that while the ISTS waiver, originally announced by the Ministry of Power (MoP), has played a "pivotal role in making renewable power more competitive", its delayed implementation by the Central Electricity Regulatory Commission (CERC) in February 2023 left many developers in a limbo. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Unsold Container Homes in North Cotabato - Prices You Won't Believe! Shipping Container Homes | Search Ads Search Now Undo Also Read: NTPC Group starts Nokh Solar PV Project, total capacity reaches 80,708 MW ISTS charges are the fees levied for using the transmission infrastructure to move electricity between states. They are imposed to cover the costs relating to building and maintaining transmission lines and other infrastructure required for interstate electricity transfer. According to an energy expert, industry estimates state that renewable energy projects of nearly Rs 5 lakh crore would be impacted if the waiver of ISTS charges is not extended. Live Events "Several RE developers made early investments, securing land, achieving financial closure, and signing definitive agreements based on the original MoP notification," the federation said. However, due to aspects like the nearly two-year lag in CERC's ratification and other uncontrollable factors, these developers are now at risk of missing the commissioning deadline of June 30, 2025, making them ineligible for the waiver. The federation flagged multiple aspects, including prolonged approvals under Section 68(1) of the Electricity Act due to an ongoing Supreme Court case on Great Indian Bustard conservation, delay in transmission planning and connectivity effectiveness, and delayed commissioning of critical transmission infrastructure. "Several developers applied for ISTS connectivity well before June 2023, in line with the ISTS waiver policy timelines. However, the effectiveness dates for granted connectivity are being issued much later, often in 2026 or 2027, due to delays in transmission system planning and execution," the federation said. The federation has proposed a milestone-based eligibility framework for the waiver. It has recommended that projects that had applied for transmission connectivity on or before June 30, 2023, achieved financial closure, acquired at least 50 per cent of the land required for their development, and placed orders for wind turbine generators and/or inverters must be considered for the purpose of availing the ISTS waiver. It argued that the approach is consistent with CERC's regulations and recent Ministry of Power notifications granting waiver flexibility to pumped storage and battery storage projects. "The proposed eligibility criteria will ensure that only serious and committed renewable energy developers, who had factored the ISTS waiver into their project design and commercial commitments, benefit from this extension," the federation said.
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Business Standard
6 days ago
- Business
- Business Standard
Solar federation to govt: Extend transmission waiver charges by a year
The National Solar Energy Federation of India (NSEFI) has written to the Prime Minister's Office (PMO), seeking an extension to the waiver on the Inter-State Transmission System (ISTS) charges for projects that are set to be commissioned within the next year, specifically until June, for those that have made significant progress. This is to protect the viability of various renewable energy projects that are at risk due to delays beyond the control of developers. The waiver aims to promote the transition to renewable energy by lowering generation costs and assisting India in reaching its goal of 500 GW of non-fossil fuel energy capacity by 2030. Currently, the charges are waived for a period of 25 years for green power projects, including solar, wind, and hybrid projects, as well as battery energy and pump storage projects that are commissioned before 30 June 2025. In a letter dated 3 June, NSEFI, which represents stakeholders across the solar value chain, stated that while the ISTS waiver announced by the power ministry has been crucial in making renewable power more competitive, its delayed implementation by the Central Electricity Regulatory Commission in February 2023 has left many developers in uncertainty. The current ISTS waiver helps renewable energy developers avoid charges ranging from ₹0.40 to ₹1.80 per unit for transporting electricity from producing states to consumer centres. According to sources, this amount constitutes a significant portion of the total tariff. If the ISTS waiver is not extended, there will likely be a substantial increase in tariffs, making power generated from renewable sources less competitive compared to other sources such as coal. This situation will also lead to higher procurement costs for electricity distribution companies. Industry players expressed concern that many Letters of Award (LoAs) would not convert into Power Purchase Agreements (PPAs) if the waiver is rescinded in June 2025. On the other hand, the cost of extending the waiver is minimal compared to the potential benefits. It would enable distribution companies (discoms) to finalise the pending 40 GW of PPAs, allowing them to save between 60 to 90 paise per unit. Moreover, industries would be encouraged to decarbonise and pursue renewable energy projects, aiding the country in achieving its 500 GW mission. According to official data, the annual transmission charges (without the waiver) amount to approximately ₹52,691 crore, while the total ISTS waiver is only around 7 per cent of this, equivalent to ₹3,602 crore. India faces transmission constraints in its quest to meet renewable energy targets. Currently, only Madhya Pradesh is expected to have spare capacity in the future, while Rajasthan and Gujarat will not. States need to plan their renewable and other power procurements according to the resource adequacy framework.
