Transmission Charge Waivers Proposed for Delayed Clean Energy Projects

India’s power sector regulator has proposed extending interstate transmission charge waivers for renewable energy projects that have been delayed due to the non-availability of transmission infrastructure, offering significant relief to developers affected by grid connectivity bottlenecks.

The draft regulations issued by the Central Electricity Regulatory Commission (CERC) aim to support solar, wind, and hybrid renewable energy projects whose commissioning schedules have slipped because dedicated transmission lines were not ready on time.

The proposal marks a partial policy reversal. India had started phasing out interstate transmission charge waivers for new solar, wind, and hybrid projects from July 2025 as part of its transition towards a market-driven framework. However, persistent delays in transmission infrastructure have impacted the timely commissioning of several renewable energy projects across the country.

Key Highlights of the Proposal

• Transmission charge waivers will be available for solar, wind, and hybrid renewable energy projects delayed solely due to the non-availability of transmission infrastructure.
• Eligible projects must have signed Power Sale Agreements (PSAs) or Power Purchase Agreements (PPAs) with a minimum tenure of seven years on or before December 31, 2026.
• The proposal also extends the benefit to Battery Energy Storage Systems (BESS) that are integrated with renewable energy projects.
• Electricity supplied from such battery storage systems will receive the same interstate transmission charge waiver as the associated renewable energy project.

Boost for India’s Renewable Energy Transition

Transmission infrastructure has emerged as one of the biggest challenges to India’s ambitious renewable energy expansion. While solar and wind capacities have grown rapidly, delays in developing transmission networks have left several commissioned projects unable to evacuate power efficiently.

By extending transmission charge waivers to projects affected by these infrastructure constraints, the proposed regulations seek to reduce the financial burden on developers, improve project viability, and accelerate the integration of renewable energy into the national grid.

If approved, the move is expected to provide much-needed certainty to investors and support India’s goal of achieving a reliable, affordable, and sustainable clean energy ecosystem.

About Indosol Solar

Indosol Solar Pvt. Ltd., the solar PV manufacturing arm of Shirdi Sai Electricals Limited, is driving India’s renewable energy ambitions through the development of a fully integrated, giga-scale solar PV manufacturing ecosystem. The company is building capabilities across the entire solar value chain—from quartz processing to high-efficiency solar photovoltaic modules.

Indosol Solar has commenced operations with a 500 MW solar module manufacturing facility at Ramayapatnam, Andhra Pradesh, which is currently being expanded to 1 GW. As part of its rapid growth strategy, the company is progressing toward its vision of establishing 10 GW of integrated solar PV manufacturing capacity by 2027, supporting India’s transition towards energy self-reliance and sustainable development.