New Delhi: The Department of Energy today issued an ordinance for the extension of the Interstate Transmission System (ISTS) fee exemption on the transmission of electricity generated from solar sources and wind turbines for projects to be commissioned until June 30, 2025. In addition, the ordinance promotes the development of solar power, wind power, pumped water storage plant (PSP) and storage system battery power (BESS), renewable energy trading in electricity trading and the transparent transmission of renewable energy across states.
The interstate transportation charge exemption on the transportation of electricity generated from solar and wind power sources that was available for solar and wind projects commissioned until June 30, 2023 has now been extended until June 30, 2025.
The Interstate Transportation System (ISTS) Fee Waiver has also been approved for the Pumped Hydraulic Storage (PSP) and Battery Energy Storage System (BESS) projects that will be put into operation. service until June 30, 2025. This will favor the installation of hydraulic pumped storage (PSP) and Battery Energy Storage System (BESS) to meet the grid balancing needs due to the large-scale integration of renewable energies in the electricity grid, i.e. around 450 GW by 2030.
The exemption of transmission charges has also been authorized for the trade of electricity produced / supplied from solar, wind, PSP and BESS energy on the Green Term Ahead Market (GTAM) and the Green Day Ahead Market ( GDAM) for two years, i.e. until June 30, 2023.
This should encourage the trading of renewable energies in the electricity exchanges. The volume of renewable energy trading on the electricity exchange is expected to increase further. An opportunity to minimize the reduction in renewables, as renewables developers will also have the opportunity to sell electricity on power exchanges and get paid instantly on the same day the electricity is delivered. Renewable energy buyers will also have the option of selling their surplus electricity on electricity exchanges or allowing sellers to sell on electricity exchanges in advance.
The order is futuristic because it also allows the exemption of transmission costs for RE transactions on the Green Day Ahead market (as part of the integrated Day ahead market). CERC, POSOCO and the electricity exchanges are working there in mission mode to operationalize this product in the electricity exchanges by the end of August 2021.
It has also been clarified that an intra-state transport network which is used for the transport of electricity through the territory of an intervening State as well as transport within the State which is ancillary to such interstate transmission of electricity, should be included for sharing interstate transportation costs. Any waiver of interstate transmission charges that applies to interstate transmission systems will also apply to those parts of the interstate transmission. The transmission costs of this intra-state transmission system will be reimbursed by the CTU as is done for the ISTS system. The regional electricity committee concerned can, through studies, identify such lines.
Thus, India is leading the way in the energy transition from fossil fuel to non-fossil fuel by encouraging the trade of electricity from renewables, hydro PSP and energy storage. This amending decree will give a boost to renewable energies and will also be a step forward in meeting the Indian government’s targets for meeting international obligations on climate change.