India Urges Delay on Stricter Grid Compliance Rules for Renewables

26 November 2025 – India: India’s Ministry of New and Renewable Energy has asked the Central Electricity Regulatory Commission (CERC) to postpone plans for tighter rules requiring wind and solar power producers to adhere more strictly to their grid supply commitments. The ministry warned the proposed measures could discourage investment in the sector.

CERC’s draft, published in September, aimed to gradually reduce the permissible gap between the electricity producers commit to supply and what they actually generate under the Deviation Settlement Mechanism, scheduled to take effect in April 2026.

In a letter dated 21 October, the ministry highlighted that forecasting errors for renewable plants are largely driven by unpredictable weather, making penalties for deviations “imprudent” and beyond developers’ control.

Industry stakeholders have echoed concerns, warning that higher deviation charges could discourage small and medium-sized firms and potentially slow investment in India’s clean energy sector.

The ministry suggested consulting stakeholders, mandating energy storage in future projects, and using improved weather data to set realistic forecasting limits.

India aims to double its non-fossil-based power capacity to 500 gigawatts by 2030, with wind and solar playing a critical role in the energy transition.

Both the ministry and CERC have not commented, and no final decision date has been set.

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