The waiver of the Inter-State Transmission system (ISTS)

Context

Ministry of Power issued an order for extension of the waiver of Inter-State Transmission system (ISTS) charges on the transmission of electricity generated from solar and wind sources.

About the ISTS waiver

• Inter-State Transmission system (ISTS) is an intra-State transmission system, which is used for the conveyance of electricity across the territory of an intervening State as well as conveyance within the State.
  • The ISTS waiver has been extended till 30th June 2025. 
  • The waiver was earlier available till 30th June 2023.
• Significance: It will promote the development of solar, wind, Hydro Pumped Storage Plant (PSP) and Battery Energy Storage systems (BESS), the trading of RE in the power exchanges, and the seamless transmission of RE power across the states. 
• This is expected to encourage the RE trade in the Power Exchanges.
• The buyers of Renewable energy will also have an opportunity to sell their surplus power in the power exchanges or allow in advance the sellers to sell in the power exchange.
• It also allows the waiver of transmission charges for RE trade in the Green Day head Market (as part of the integrated Day-ahead market).
• It paves way for an energy transition from Fossil fuel to Non-fossil fuel by giving incentive for power trade from Renewable, Hydro PSP, and Energy Storage. 
• This amendment Order will be a boost to renewable energy.
• It is a step forward to achieve the targets of the Government of India in meeting the international obligations towards climate change.