The Central Electricity Regulatory Commission (CERC) has issued a draft notification proposing amendments to its Inter-State Transmission System (ISTS) regulations to provide a 25-year waiver of transmission charges for eligible renewable energy projects integrated with Battery Energy Storage Systems (BESS). The proposal is aimed at supporting renewable energy deployment while encouraging the adoption of grid-scale energy storage solutions.
Under the draft amendments, renewable energy projects co-located with BESS would remain eligible for the ISTS transmission charge waiver for 25 years, subject to meeting the prescribed conditions. CERC has also proposed provisions to safeguard the waiver for projects that face commissioning delays due to reasons related to the availability of transmission infrastructure, provided they comply with the applicable regulatory requirements.
The proposed framework also seeks to bring greater clarity to the treatment of renewable energy projects connected with battery storage systems under the existing transmission charge regulations. It includes provisions covering connectivity arrangements, project eligibility, and the application of transmission charge waivers for qualifying renewable-plus-storage projects.
In addition, the draft amendments address operational aspects related to projects connected through the Central Transmission Utility (CTU) and State Transmission Utility (STU) networks. The proposed changes are intended to streamline the implementation of transmission charge waivers while ensuring consistency in the regulatory framework for renewable energy and energy storage projects.
CERC has invited comments, suggestions, and objections from stakeholders on the draft regulations before finalising the amendments. The consultation process is expected to help refine the proposed framework and ensure that the revised regulations address the practical requirements of renewable energy developers, transmission utilities, and other sector participants.
If approved, the amendments would provide long-term regulatory certainty for renewable energy projects integrated with BESS while supporting India’s clean energy transition. The proposal aligns with the country’s broader efforts to expand renewable energy capacity, strengthen grid integration, and promote energy storage as a key component of a reliable and sustainable power system.
