The Interstate Transmission System (ISTS) is projected to facilitate 40 GW of green open access capacity by 2030, accounting for nearly one-third of India’s green open access capacity. ISTS-based renewable energy projects help balance supply and demand gaps for local distribution companies.
Since 2020, these projects have contributed to utility-scale renewable energy tenders. Financial considerations play a crucial role in the adoption of ISTS-based green open access, with waivers decreasing by 25% annually from July 2025 to June 2028.
India is making significant strides in its renewable energy transition, with the Inter-State Transmission System (ISTS)-linked Green Open Access expected to add 40 GW of capacity by 2030. This initiative aligns with India’s ambitious target of achieving 500 GW of non-fossil fuel capacity and promoting affordable and accessible green energy for industries and consumers.
Understanding ISTS-Linked Green Open Access
Green Open Access enables consumers to procure renewable energy directly from power producers across state boundaries using the ISTS network, eliminating the need for captive power generation. This initiative allows industries, commercial establishments, and large consumers to bypass traditional power purchase.
Key features of the Green Open Access Rules, 2022, introduced by the Ministry of Power, include agreements (PPAs) with local distribution companies (Discoms) and source cheaper, sustainable energy Lower threshold for eligibility: Consumers with a power demand of 100 kW or more can now access green energy through ISTS. Simplified approval process: Faster clearances.
Growth Potential and Industry Impact
The 40 GW capacity addition through ISTS-linked Green Open Access is expected to accelerate India’s renewable energy transition in multiple ways Tariff rationalization: Reduced cross-subsidy surcharges making renewable power more affordable Large industries and corporations can meet their sustainability goals by sourcing renewable energy at competitive rates.
- Lowering Energy Costs for Consumers
- Open access to green power enables businesses to reduce operational costs, as renewable energy is often cheaper than conventional sources Encourages investments in green hydrogen, energy storage, and distributed renewable energy systems More independent power producers (IPPs) and renewable energy developers will invest in ISTS-linked projects, enhancing market competition.
- Enables corporate power purchase agreements (CPPAs), ensuring a reliable market for green power generators. Expansion of the ISTS network will ensure seamless inter-state power transmission, reducing power imbalances across regions. Enhances grid resilience and facilitates integration of large-scale renewable energy projects Despite its potential, India’s Green Open Access faces certain challenges.
Challenges and Road Ahead
Regulatory Uncertainties : Some states have resisted implementation due to concerns over revenue loss for Discoms. Managing intermittent energy supply requires robust storage solutions and advanced grid management technologies Expanding the ISTS.
The ISTS-linked Green Open Access initiative is a game-changer for India’s renewable energy ecosystem, promising 40 GW of additional capacity by 2030. By promoting affordable green energy, reducing industrial carbon footprints, and strengthening grid infrastructure, India is taking a major step toward a sustainable.
low-carbon future. However, addressing regulatory and infrastructure challenges will be key to unlocking its full potential network requires significant investment and coordination between central and state agencies streamlined regulatory mechanisms to promote large-scale adoption.
India’s Green Open Access initiative, linked to the Inter-State Transmission System (ISTS), is set to add 40 GW of renewable energy capacity by 2030. This policy enables consumers to purchase green power from projects across states without transmission charges, boosting affordability and sustainability.
By streamlining approvals and reducing barriers, the initiative encourages industries and businesses to transition to clean energy. With a focus on solar and wind projects, the policy aligns with India’s ambitious renewable energy targets, fostering decarbonization and energy independence.
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