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ISTS (inter-state transmission) charge waiver sunset
What it is
The waiver of inter-state transmission system charges for renewable projects removed a significant cost for developers selling power across state boundaries. It has been tapering rather than ending abruptly, with extensions granted where transmission delays were the developer's fault
It was among the strongest economic supports for utility-scale renewables
Impact on industries
- Withdrawal raises delivered cost for inter-state renewable supply, weakening competitiveness against locally sited generation
- Projects bid at tariffs assuming the waiver face margin compression if commissioning slips past the sunset date
- Extensions have been granted where transmission unavailability caused the delay, recognising that the constraint was not the developer's doing
- The taper is deliberate policy - it moves renewables from subsidised to competitive footing as the technology matures