Issuing authority: Ministry of Power
The Ministry of Power has issued a new order revising the waiver of Inter-State Transmission System (ISTS) charges for energy storage projects, aimed at accelerating the development of Hydro Pumped Storage Projects (PSP) and Battery Energy Storage Systems (BESS).
Under the new directive, 100% ISTS charges will be waived for Hydro PSP projects whose construction contracts are awarded on or before June 30, 2028. Similarly, co-located BESS projects commissioned by June 30, 2028 will also receive full exemption, provided the stored power is consumed outside the commissioning state.
However, no waivers will be granted for Hydro PSPs awarded after the June 2028 cut-off, or for co-located BESS projects commissioned post-deadline. For non-co-located BESS, existing guidelines from the Ministry of Power and CERC will apply.
Access the full notification here