Investments in ISTS grid infrastructure dedicated to RE projects have surged over the past decade, as new transmission lines and substation capacities have been developed to transfer power from RE-rich states to low-RE states.

The inter-state transmission system (ISTS) charge and loss waivers for renewable energy (RE) between Indian states are set to be phased out by 2028. Initially introduced to support the RE sector, the waiver has been extended several times due to demands from developers and the industry. However, as the solar and wind energy markets have matured, it’s crucial to reassess the merits and drawbacks of the policy, especially given renewed calls to continue the waiver beyond 2028.