The Union Power Ministry has extended waiver of inter-state power transmission charges and losses for solar and wind power projects commissioned till 31 March 2022 in order to give boost to clean energy sources.
The waiver will be available to solar and wind projects for 25 years from date of commissioning provided developers sign power purchase agreements with entities, including power distribution companies (discoms), for sale of power for compliance of their renewable purchase obligation. Moreover, the waiver will be available to only those projects which are awarded through competitive bidding process as per guidelines issued by central government. These new conditions for wavier of transmission charges and losses irrespective of purchasing entity will be applicable prospectively.
The order assumes significance in view of India’s ambitious target of having 175GW of renewable energy capacities (100GW of solar, 60GW of wind energy, 10GW energy from Biomass and 5 GW from Hydel). At present, India’s installed renewable generation capacity is 62.84 GW excluding large hydro projects above 25 MW. The Union Government also 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.
Earlier, the waiver was available to solar and wind power projects commissioned till 31 December 2019, and 31 March 2019, respectively. It was available for a period of 25 years from date commissioning of the project. Moreover, under it incentive was not available to firms other than discom. Thus, other entities procuring clean energy from these projects were at disadvantageous position.