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Government Ensures Seamless Grid Integration for Renewable Energy Through Strong ISTS Framework

March 17, 2026 5 min read Economics Science & Technology GS3 (Energy Infrastructure Environment)
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What Happened

  • The Ministry of Power affirmed that the Inter-State Transmission System (ISTS) framework, governed by the Central Electricity Regulatory Commission (CERC) under its 2020 regulations (and subsequent amendments), provides a structured mechanism for integrating renewable energy into the national grid.
  • The Central Transmission Utility (CTU) serves as the nodal agency for connectivity and General Network Access (GNA) to the ISTS, with Quarterly Joint Co-ordination Committee meetings and monthly monitoring of critical elements ensuring implementation oversight.
  • The government's framework includes tiered ISTS charge waivers of up to 25 years for various renewable categories — solar and wind projects commissioned by June 2025 receive a full 100% waiver, with progressive reductions for those commissioned up to June 2028; projects after June 2028 receive no waiver.
  • Battery Energy Storage Systems (BESS) and Pumped Hydro Storage (PHS) projects commissioned by June 2028 are eligible for 100% ISTS charge waiver for 12 years, following an extension in June 2025.
  • Green hydrogen and green ammonia plants with commercial operation by December 2030 qualify for a 100% ISTS charge waiver for 18 years; offshore wind projects commissioned by December 2032 also receive a 100% waiver.

Static Topic Bridges

Inter-State Transmission System (ISTS) and the CERC Framework

The Inter-State Transmission System (ISTS) is the backbone of India's national power grid — a network of high-voltage transmission lines and substations that enables the transfer of electricity across state boundaries. It is owned and operated primarily by Power Grid Corporation of India Limited (PGCIL), a Central PSU designated as the Central Transmission Utility (CTU) under the Electricity Act, 2003. CERC, established under Section 76 of the Electricity Act, 2003, is the independent regulator that determines ISTS transmission tariffs and governs open access.

  • CERC's ISTS charge-sharing regulations: CERC (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2020; amended on 26 June 2025.
  • General Network Access (GNA) framework replaced Point of Connection (PoC) mechanism — GNA allows renewable generators to connect at any ISTS node, making project siting more flexible.
  • ISTS charges are shared among all users on a usage-independent (postage stamp) basis — the cost is socialized across the grid rather than distance-based.
  • Power Grid Corporation (PGCIL) is the CTU under the Electricity Act, 2003 (Section 38).
  • The National Load Despatch Centre (NLDC), operated by POSOCO, manages real-time grid balancing.

Connection to this news: The ISTS waiver framework is specifically designed to make renewable energy economically competitive by eliminating a significant component of delivered cost — enabling renewable power to reach distant demand centres without bearing interstate wheeling charges.

ISTS Charge Waiver Policy — Design and Rationale

India's power grid is geographically concentrated: the best renewable energy resources (solar in Rajasthan/Gujarat, wind in Tamil Nadu/Gujarat/Karnataka) are far from major demand centres (Maharashtra, UP, Delhi). Without waivers, ISTS transmission charges would significantly raise the landed cost of renewable energy at the distribution end, eroding cost competitiveness against coal-based power. The waiver policy is a deliberate regulatory subsidy to accelerate renewable deployment.

  • Solar/Wind projects commissioned by June 30, 2025: 100% waiver for 25 years.
  • Solar/Wind projects commissioned July 2025–June 2026: 75% waiver; July 2026–June 2027: 50%; July 2027–June 2028: 25%; after June 2028: no waiver.
  • BESS and PHS commissioned by June 2028: 100% waiver for 12 years (extended in June 2025 by 3 years).
  • Green Hydrogen/Ammonia commissioned by Dec 2030: 100% waiver for 18 years; declining to 25% for Dec 2033 commissioning.
  • Offshore wind commissioned by Dec 2032: 100% waiver.
  • Force majeure extensions permitted: up to two extensions of 6 months each for projects with qualifying delays.

Connection to this news: The phased rollout of waivers — declining over time — is designed to create urgency in project development while signalling a transition to market-based pricing for future projects. Industry bodies (NSEFI) have sought extensions, citing project delays from grid availability and land acquisition bottlenecks.

Green Energy Corridor and National Electricity Plan

India's 500 GW non-fossil electricity capacity target by 2030 (committed under the Paris Agreement's NDC update) requires massive transmission infrastructure alongside generation additions. The Green Energy Corridor (GEC) scheme — Phases I and II — provides targeted transmission infrastructure specifically for evacuating power from renewable-rich states. The National Electricity Plan (NEP) 2024, published by the Central Electricity Authority (CEA), provides the long-range transmission planning framework.

  • Green Energy Corridor Phase I: Covers 7 states (Tamil Nadu, Rajasthan, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Himachal Pradesh); 9,700 circuit km of transmission lines, 22,600 MVA of substation capacity.
  • GEC Phase II: Targets interstate transmission from renewable energy zones in Ladakh, Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu.
  • National Electricity Plan (October 2024): Plans 500 GW+ renewable capacity transmission integration by 2030.
  • CEA's 500 GW transmission planning report maps required substations, lines, and storage for each renewable energy zone.
  • ISTS capacity addition target: approximately 4,50,000 circuit km cumulatively by 2030 (all voltage levels).

Connection to this news: The government's reassurance about the ISTS framework's adequacy is relevant against the backdrop of industry complaints about transmission delays impeding renewable project timelines — a key risk that the Quarterly Joint Co-ordination mechanism aims to address.

Key Facts & Data

  • CERC ISTS regulations: CERC (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2020; amended June 26, 2025.
  • CTU: Power Grid Corporation of India Limited (PGCIL), designated under Electricity Act, 2003, Section 38.
  • Solar/Wind ISTS waiver: 100% for 25 years if commissioned by June 30, 2025; no waiver after June 2028.
  • BESS/PHS waiver: 100% for 12 years if commissioned by June 2028 (extended by 3 years in June 2025).
  • Green Hydrogen/Ammonia waiver: 100% for 18 years if commissioned by December 2030.
  • Offshore Wind waiver: 100% if commissioned by December 2032.
  • India's renewable energy target: 500 GW non-fossil capacity by 2030.
  • Green Energy Corridor Phase I: 9,700 circuit km of lines, 22,600 MVA of substation capacity across 7 states.
  • GNA replaced PoC mechanism for ISTS connectivity for renewable projects.