“End of Transmission Fee Waiver Impacts Renewable Energy Projects”

• Crisil Ratings predicts 26 gigawatt of renewable energy projects will be affected by the end of the inter-State transmission system (ISTS) charge waiver for solar and wind projects.

• The deadline for extension on ISTS charges for project setup and commissioning ended on June 30, 2025.

• Projects with power purchase agreements may face moderation in cash flow after the 100% ISTS charge exemption expires.

• These projects may now face a phased reduction in benefits.

• The ISTS charge waiver encouraged renewable energy development.