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India may waive transmission charges for delayed solar and wind projects
The proposed waiver would apply only to projects with developers that signed at least seven-year power sale contracts by the end of this year, and India’s central regulator is also weighing extending relief to battery storage.
India’s government is considering waiving transmission charges for solar and wind developers whose projects have been delayed due to shortages of transmission lines needed to carry generated power, according to a Reuters report cited by OilPrice.
The relief would be limited to projects where developers had signed at least seven-year power sale contracts by the end of this year, with the Indian government having already begun phasing out interstate transmission charges for alternative energy projects in July last year.
OilPrice notes that a lack of available transmission capacity has contributed to delays for solar, wind, and hybrid generation projects. The Central Electricity Regulatory Commission will also consider extending the transmission-charge relief to battery storage projects as India seeks to diversify electricity generation away from coal and gas.
India has a goal of building 500 GW of non-hydrocarbon generation capacity by 2030, with solar making up 29% of that non-hydrocarbon total. While plans call for solar to rise from 162 GW to over 292 GW by 2030, the target is described as under threat by legislative changes aimed at reducing reliance on imported solar components from China, alongside manufacturing gaps.