Relief to solar consumers

Hyderabad: The Central Government has waived interstate transmission charges and losses on the transmission of electricity generated by solar and wind power projects through the interstate transmission system. This will allow open access consumers to receive power at generation cost, without having to pay any additional charges. The Centre has implemented this move in order to encourage the use of renewable sources of energy.

The central government has waived inter-state transmission charges and losses on the transmission of electricity generated by solar and wind power projects through the interstate transmission system. This will allow open access consumers to receive power at generation cost, without having to pay any additional charges.

The Centre has implemented this move in order to encourage the use of renewable sources of energy.

The cost of solar power is around `2.42 per unit. Until now, if a Hyderabad-based open access consumer wished to purchase solar or wind energy from Rajasthan, he would have to pay interstate transmission charges and losses. With these additional charges, the cost of power would be `3.5 to `4 per unit. Now, consumers can get solar power from other states at `2.42 per unit.

The Centre said the waiver on interstate transmission charges and losses will be applicable for solar projects commissioned until March 31, 2022, and for wind projects commissioned until March 31, 2019.

The waiver is available for a period of 25 years from the date of commissioning of such projects and is only available for the projects entering into power purchase agreements for the sale of electricity to distribution companies for compliance of their renewable purchase obligation. The waiver is only available for those solar and wind projects that have been awarded through a competitive bidding process.