CERC Boosts Clean Energy Deployment with Revised Inter-State Transmission Charges and Waivers
Key Ideas
  • CERC's fourth amendment to transmission regulations introduces waivers and incentives for renewable, storage, offshore wind, and green hydrogen projects to boost clean energy.
  • Transmission charge waivers for renewable projects vary based on commissioning dates, with a 100% waiver for projects before June 2025 and graded benefits thereafter.
  • Hydro and storage projects also benefit from waivers, with distinct timelines and conditions for eligibility, creating a favorable environment for clean energy investments.
  • The amendments allow flexibility for delays due to force majeure, emphasize cost-sharing efficiency, and promote dual connectivity projects for enhanced grid integration.
The Central Electricity Regulatory Commission (CERC) in India has made significant amendments to the 'Sharing of Inter-State Transmission Charges and Losses Regulations, 2020,' aiming to accelerate the adoption of clean energy technologies. The latest regulations introduce waivers and incentives for renewable energy, battery storage, offshore wind, and green hydrogen projects, providing a substantial boost to the country's clean energy deployment efforts. One of the key highlights is the extension of transmission charge waivers for renewable energy generation stations (REGS) focusing on wind, solar, or hybrid projects. Projects commissioned by specific dates can enjoy varied levels of waivers for up to 25 years, incentivizing early investments in clean energy infrastructure. Additionally, offshore wind, green hydrogen, battery storage systems, hydro-based pumped storage projects, and hydro stations are also eligible for waivers under defined timelines, encouraging a diverse mix of clean energy developments. The amendments also cater to flexibility in case of project delays due to unforeseen circumstances, ensuring that developers can still benefit from the waivers if delays are reasonable and approved by relevant authorities. Moreover, the regulations streamline the cost-sharing approach for transmission assets and emphasize the importance of efficient cost calculations for transmission charges. Overall, these regulatory changes represent a significant step towards strengthening India's clean energy transition by providing critical cost incentives and regulatory support for developers investing in various clean energy projects. The amendments not only promote renewable energy but also focus on enhancing grid integration, efficiency, and sustainability in the country's electricity sector.
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