In Short : The 100% interstate transmission system (ISTS) fee waiver for battery storage systems and pumped hydro projects co-located with renewable energy sources has been extended by India’s power ministry and is now in effect until June 30, 2028. By supporting the country’s clean energy expansion toward its 500 GW non-fossil capacity target by 2030, this daring policy move will help storage-protected projects that are having trouble with intermittent grid stability.
Prognostications and Policy Prospects
The waiver, which was initially scheduled to expire, has been extended by additional years, offering a buffer because transmission costs can account for up to 7% of distribution companies’ monthly expenses. To encourage the widespread use of clean energy, the government also introduced a ₹54 billion plan to finance up to 30 GWh of battery energy storage.
Given the rapid increase in solar and wind power—clean energy now accounts for 15.4% of total electricity generation—more storage is essential to enabling further penetration and reducing an excessive dependence on non-renewable resources.
Strategic Implications for the Integration of Clean Energy
This policy strengthens the backbone of infrastructure required to integrate grid-interactive storage and solar system drawing-planned deployments. In order to prevent intermittent generation from limiting solar energy projects, grid-resilient storage infrastructure is crucial.
Such policy clarity boosts investor confidence in storage-linked solar assets, which could have a positive impact on the share price of the solar industry as end-to-end clean energy becomes more bankable.
The Bottom Line
India is elevating storage as the foundation of its clean energy revolution by extending the ISTS waivers and providing funding for energy storage. By enabling solar and wind to function with dependability and scale across the country’s power markets, this action lays the groundwork for sustainable development.
