The renewable energy industry and the government are engaged in an intense debate and discussion regarding the future of the Interstate Transmission System waiver. As of July 1, the ISTS waiver will be phased out in increments of 25% annually and will be fully withdrawn by June 30, 2028. Introduced in 2016, the waiver exempted renewable projects, such as wind and solar, from paying any charges for the transportation of power across states.This was one of the key factors that encouraged the setting up of renewable projects, as ISTS-exempted green power became competitive. Estimates vary, but savings range from ₹0.40 to ₹1.5 per unit, depending on the load and distance. These savings are significant in the context of the overall cost of power and have worked particularly well for power-intensive industries, such as steel, cement, and aluminium, since cheaper green electricity reduces production costs, boosting margins.
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