The Kerala government has revised its power procurement framework by incorporating Inter-State Transmission System (ISTS) charge benefits for renewable energy (RE) and Battery Energy Storage System (BESS) projects. The updated rules are designed to align the state’s procurement process with the latest guidelines issued by the Ministry of Power, making clean energy procurement more efficient and cost-effective.
Under the new provisions, power distribution companies and procurement agencies in Kerala can consider ISTS charge waivers while purchasing electricity from eligible renewable energy and energy storage projects. This is expected to reduce transmission-related expenses and improve the competitiveness of clean energy bids in future procurement processes.
The revised framework also covers Battery Energy Storage System (BESS) projects that qualify for ISTS benefits under the central government’s guidelines. These storage systems will support better integration of renewable energy into the grid by improving power availability, enhancing grid flexibility, and ensuring a more reliable electricity supply.
Kerala’s decision is expected to encourage greater participation from renewable energy developers and storage solution providers in upcoming tenders. By recognising ISTS benefits during power procurement, the state aims to attract competitive bids while supporting investments in advanced clean energy infrastructure.
The updated procurement rules are part of Kerala’s broader strategy to accelerate renewable energy adoption and strengthen its power sector. The move complements national efforts to promote battery storage and renewable energy projects through policy support, transparent bidding mechanisms, and transmission charge incentives.
With the inclusion of ISTS benefits in its procurement regulations, Kerala has taken another step toward expanding clean energy deployment and improving long-term energy security. The revised rules are expected to facilitate greater use of renewable power and battery storage while supporting the state’s transition toward a more sustainable electricity ecosystem.
