Govt waives transmission charges on power from new hydro projects

The Union Ministry of Power said on Friday that it has waived the inter-state transmission system (ISTS) charges on the transmission of electricity generated from new hydropower projects.

“The ministry of power has now decided to extend the waiver of ISTS charges on the transmission of power from new hydropower projects, for which construction work is awarded and power purchase agreement (PPA) is signed on or before June 30, 2025,” a statement from the ministry said.

The latest decision will further step to realise the central government's commitment to achieving its power requirement from renewable energy sources, said the statement.

The ministry also said such a waiver is already available to solar and wind power projects.

The government has set an ambitious plan to have 500 GW of generation capacity from non-fossil energy-based sources by 2030. Hydropower projects, being clean, green and sustainable will be of paramount importance in our clean energy transition journey. They are also essential for the integration of solar and wind power, which are intermittent in nature, said the statement.

This step is expected to provide a boost to the hydro sector, which will also help improve India’s water security and bring development benefits to hilly states, namely the northeast states, Uttrakhand, Jammu and Kashmir, Himachal Pradesh etc., where most of the hydro potential is located, said the statement.