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

In Short : The government is strengthening the Inter-State Transmission System (ISTS) framework to ensure seamless grid integration of renewable energy. By expanding transmission infrastructure, improving connectivity, and implementing supportive policies, it aims to facilitate efficient power evacuation. These efforts will enhance grid stability, accelerate renewable capacity addition, and support India’s transition toward a reliable, flexible, and sustainable energy system.

In Detail : The Inter-State Transmission System (ISTS) charges are governed by Central Electricity Regulatory Commission (CERC) (Sharing of Inter State Transmission Charges and Losses) Regulations, 2020 and its amendment thereafter. According to the 4th Amendment to the said regulations dated 26.06.2025, The detail of ISTS charges waiver for specific categories of renewable energy and energy storage projects is given in Annexure.

The grid connectivity is regulated by the CERC (Connectivity and General Network Access to the Inter-State Transmission System) Regulations, 2022 as amended with defined timelines and procedures.

As per the Regulation, the Nodal Agency for Connectivity or General Network Access (GNA) to the ISTS is Central Transmission Utility (CTU).

Progress of renewable energy (RE) generation and associate ISTS is being monitored in quarterly Joint Co-ordination Committee Meetings by CTU wherein efforts are being made to avoid mismatches between RE developers and transmission service providers. Further, the transmission system is also being monitored at the level of the Ministry of Power and Central Electricity Authority (CEA).

CTU has now also been mandated to monitor the critical elements on a monthly basis with participation of transmission developers and generation project developers.

In case of non-availability of associated transmission system, CTU in consultation with CEA, Grid-India and TSPs, evolves alternate/interim arrangement, wherever possible, so that timely evacuation can be provided to RE projects.

Additionally, the Government has taken the following measures to ensure timely grid connectivity and evacuation for projects.

Green Energy Corridor Scheme is being implemented for evacuation of power from RE projects from identified locations.

The CEA prepared a report on “Transmission System for Integration of over 500 GW RE Capacity by 2030”.

Advance transmission planning through the National Electricity Plan (Volume II: Transmission), notified by Central Electricity Authority (CEA) in Oct, 2024.

As per CERC regulations, the ISTS charges are shared by drawee DICs (Designated ISTS Customers) and therefore, do not have direct impact on the cost of generation of renewable energy projects. Under Section 38 (2)(c) of the Electricity Act 2003, CTU has been mandated to ensure development of an efficient, coordinated and economical system of ISTS.

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ANNEXURE REFERRED TO IN PARTS (a) OF THE RAJYA SABHA UNSTARRED QUESTION NO.2862 DUE FOR ANSWER ON 17.03.2026 REGARDING “WAIVER OF ISTS CHARGES FOR RENEWABLE ENERGY PROJECT”.

This information was submitted by Union Minister of State for New and Renewable Energy Shri Shripad Yesso Naik in a written reply to Rajya Sabha today.