No interstate transmission fee for offshore wind, green H2 projects

The government has waived off interstate transmission charges on offshore wind power units commissioned by calendar 2032 for 25 years from the date of commissioning. It has also extended the commissioning date for applicability of such charges on green hydrogen and ammonia projects to 2030 from 2025.

Offshore wind projects should be established through power purchase agreements or on a merchant basis, the power ministry said in a notification.

For offshore wind projects commissioned after 2032, the charges will be 25% of existing interstate transmission system (ISTS) charges and increase biennially by 25 percentage points till 2038 when it becomes 100% of applicable charges, it said.


For green hydrogen and ammonia projects, exemption is being given for 25 years starting the date of commissioning of the project. The projects should be using renewable energy from solar, wind, or large hydro projects commissioned after March 8, 2019, or energy storage systems, the ministry said.

For green hydrogen and ammonia plants commissioned after 2030, the ISTS charges will be levied at 25% of the applicable charges and thereafter increase biennially by 25 percentage points till 2036.

Green hydrogen projects and discoms that take power from an energy storage system project will also be exempted from such charges if they draw a minimum 51% of annual contract or consume from such projects.