Transmission Fees

Transmission Fees are waived for GH2 & Offshore Wind Projects

The government has expanded the 25-year interstate transmission fees waiver for renewable energy to offshore wind generation projects, as well as green hydrogen and ammonia units, to level the playing field for solar generation and encourage the development of additional green power sources.

The waiver will be granted to wind power projects that have been operational as of December 31, 2032, according to a power ministry order issued on Monday. Projects started after this date will receive a partial waiver according to a schedule.

Between January 2033 and December 2034, projects must pay 25% of the interstate transmission fees. Charges will be assessed at a rate of 25% for projects ordered between January 2034 and December 2035 and a rate of 75% for orders placed between January 2035 and December 2036.

All fees must be paid for projects that are started after January 2037.
If they use energy from solar, wind, or large hydroelectric units that were launched after March 8, 2019, green hydrogen or ammonia projects that are completed by December 2030 won’t be subject to any interstate transmission fees.

If green hydrogen or ammonia units use electricity from pump storage or battery storage plants, transmission fees will also be eliminated in certain cases. Projects utilising green hydrogen and ammonia that are put into service after December 2030 will receive a graded partial waiver.

From January 2030 through December 2031, 25% of the applicable transmission levy will be applied to projects. Between January 2033 and December 2034, projects must pay 50% of the tax, between January 2034 and December 2035, projects must pay 75% of the levy, and after that date, units must pay 100% of the levy.

Source: The Economic Times

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