The Indian government has indicated that it does not plan to extend the Inter-State Transmission System (ISTS) charges waiver for solar and wind energy projects beyond the June 30, 2025 deadline. A senior government official confirmed this position, stating clearly, “We will not extend the waiver (for solar and wind projects),” in response to questions about a possible continuation.

The ISTS waiver, a crucial incentive for renewable energy developers, allows them to transmit electricity across state lines without incurring heavy transmission fees. Its withdrawal could significantly raise tariffs, potentially rendering solar and wind power less competitive compared to conventional energy sources such as coal.

Responding to concerns about projects delayed past the deadline, the official noted that their financial viability would be assessed on a case-by-case basis, and relief would be considered where appropriate.

The industry has expressed deep concern over this development. Last month, the Electric Power Transmission Association (EPTA) urged the government to extend the waiver until March 2026, warning that nearly 30 GW of renewable energy projects and ₹2 lakh crore in investments could be at risk. EPTA Director General G.P. Upadhyay emphasized that delays have stemmed from factors outside developers’ control, including regulatory hurdles, land acquisition challenges, and environmental restrictions such as the protection of the Great Indian Bustard in Rajasthan and Gujarat.

The potential lapse of this policy could drive affected developers to seek redress from the Central Electricity Regulatory Commission (CERC), further delaying already-stalled clean energy initiatives across several key Indian states.

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