Waiver of transmission fees and losses spells relief for the Indian wind and solar sector

In an order issued on 13th February, the power ministry has decided to extend the waiver of inter-state transmission fees and losses incurred on transmission of electricity from wind and solar sources.

The waiver is applicable for 25 years for all those solar and wind projects which will be commissioned till 31st March, 2022.  Earlier, the waiver was to conclude in 2019.

The waiver is subjected to the following conditions –

  • The waiver is applicable for all those solar & wind projetcs that are entering into PPAs with any entity including DISCOMS
  • The waiver will be allowed to only those wind and solar projetcs which are awarded through competitive bidding process in accordance with guidelines issued by the Central Government

This move is probably the first positive sign for the renewable energy industry this year. The Budget did not hold any jackpots so as to speak for the renewable energy industry.

Also, the last few months have held a lot of uncertainty for the Solar Sector with the Director Safeguards imposing a 70 % tariff on Chinese modules with little clarity on the future of  imported modules lying at the ports for commissioned projects. The order was stayed by Madras High court but no decision has since been announced.  

With the rollback of duty on tempered glass and waiver of transmission fees and losses, one does wonder if the 70% safeguard duty on Chinese modules might just become a reality.

 

Sources :

https://powermin.nic.in/sites/default/files/webform/notices/Waiver_of_inter_state_transmission_of_the_electricity.pdf

fre-sonneveld-1927-unsplash

Pic Credit : Fré Sonneveld

 

 

 

 

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