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End of ISTS Charge Waiver May Impact 26 GW Renewable Energy Projects: Crisil

Crisil warns that withdrawal of ISTS charge waiver for solar and wind projects could slow down India’s green energy momentum.

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End of ISTS Charge Waiver May Impact 26 GW Renewable Energy Projects: Crisil

Latest Update:

  • According to Crisil Ratings, around 26 gigawatt (GW) of renewable energy (RE) capacity — mostly solar and wind projects — may be affected due to the end of the waiver on Inter-State Transmission System (ISTS) charges.
  • The waiver, which previously allowed free transmission of renewable energy across states, has expired, raising cost concerns for developers.

About Inter State Transmission System (ISTS):

  • Purpose:
  • A high-voltage transmission network enabling electricity flow across state borders in India.
  • Balances power supply between energy-rich and energy-deficient regions.

Managed by:

  • Central Transmission Utility of India Ltd (CTUIL)
  • A wholly-owned subsidiary of Power Grid Corporation of India Ltd (POWERGRID) under the Ministry of Power

Voltage Range:

  • Operates at 132 kV and above
  • Minimizes transmission losses and improves grid stability

Role in Renewable Energy:

  • Facilitates large-scale transmission of solar and wind power
  • Key enabler for pan-India renewable energy distribution

Key Benefits of ISTS:

  • Eliminates state-wise power flow restrictions
  • Creates a unified national electricity market
  • Helps overcome geographical limitations
  • Ensures efficient energy allocation based on demand

How ISTS Works:

  1. Power Generation: From solar, wind, hydro, and thermal sources
  2. Grid Connection: Power sent to ISTS high-voltage substations managed by CTU
  3. Transmission: Electricity transmitted via 132 kV+ lines across states
  4. Load Regulation: Monitored by RLDCs and NLDC to ensure demand-supply balance
  • Local Distribution: Stepped down and supplied via State Transmission Utilities (STUs) to consumers

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