The Central Electricity Regulatory Commission (CERC) has issued the Fourth Amendment to its 2020 regulations related to the sharing of interstate transmission charges and losses. This amendment, published on 26 June 2025, includes important changes designed to facilitate the expansion of renewable energy projects across the country, particularly those involving solar, wind, hydro power, energy storage systems (ESS), and green hydrogen or ammonia plants.
One of the key updates is the detailed waiver schedule for transmission charges based on the type of project and the date of commissioning. Renewable Energy Generating Stations (REGS) based on wind, solar, or a combination of both are eligible for 100% waiver if they begin commercial operation by 30 June 2025. This benefit gradually decreases to 75%, 50%, and 25% for projects commissioned in the following three years, ending on 30 June 2028. After that, no waiver will be granted.
Battery-based ESS is also incentivized. If such systems are connected to substations where REGS are located and are charged directly from them, they will receive a full 12-year waiver on transmission charges. Systems not meeting this criterion but commissioned before 30 June 2025 also receive a 100% waiver, which similarly reduces to 75%, 50%, and 25% in subsequent years up to 2028.
Hydro Pumped Storage Projects (PSP) will get 25 25-year waiver if their construction starts on or before 30 June 2028. Regular hydro generation projects can get up to 18 years of waiver if the construction and power purchase agreement are signed before 30 June 2025, with a declining scale for later dates.
Green hydrogen and green ammonia plants also benefit. If they start commercial operations by 31 December 2030, they will receive a 100% waiver on transmission charges for 25 years. This percentage reduces to 75%, 50%, and 25% for projects operational up to 2033. No waiver is provided after 1 January 2034.
Offshore wind projects are treated similarly, with full waivers offered up to 2032 and reduced benefits thereafter.
To accommodate delays, the regulation provides up to one year of extension in two six-month intervals, provided valid reasons like force majeure or transmission system unavailability are presented and approved.
The amendment also introduces billing-related changes and clarifies definitions, including “tariff regulations” and “terminal bay.” Self-declarations from developers will be used temporarily to assess waiver eligibility, which the National Load Dispatch Centre will later verify.
These changes are a part of India’s continued regulatory push to meet its renewable energy targets and reduce the cost burden on clean energy projects.
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