28 November 2025
India’s renewable energy ministry has asked the Central Electricity Regulatory Commission (CERC) to defer its plan to introduce stricter green energy rules for wind and solar producers.
The proposed changes, published in a draft in September, would tighten compliance requirements under the Deviation Settlement Mechanism, demanding that renewable generators adhere more closely to their scheduled power output.
While the regulator aims to strengthen grid stability, the industry has expressed growing concern over the feasibility of such strict penalties.
In an October 21 letter reviewed by Reuters, the ministry emphasised that forecasting errors for wind and solar plants are driven largely by unpredictable weather conditions.
Since developers have limited control over sudden changes in wind speed or solar irradiance, the ministry argued that imposing heavy penalties for deviations would be “imprudent.” It also warned that such rules could weaken investor confidence at a time when India needs strong momentum in renewable capacity addition.
Earlier reports indicated that multiple industry stakeholders had already written to CERC raising similar concerns.
The ministry further noted that higher deviation charges could disproportionately hurt small and medium-sized renewable firms. These companies often operate with thinner margins and have less capacity to absorb financial penalties tied to weather-driven variability. According to the ministry, the proposed rules could have a “catastrophic effect” on the broader clean energy sector by discouraging participation and slowing down India’s renewable energy growth trajectory.
As part of its recommendations, the ministry urged CERC to conduct deeper stakeholder consultations before finalising the rules. It suggested exploring long-term structural solutions such as mandating energy-storage systems for future renewable projects, which would help stabilise output.
Additionally, it proposed leveraging improved weather data and advanced forecasting models to set more realistic deviation limits. With India targeting 500 GW of non-fossil-based capacity by 2030, the ministry stressed that supportive regulatory policies are essential to sustaining investment and accelerating the country’s green energy transition.
Delays on stricter green-energy rules create short-term relief but push compliance investment further into the pipeline horizon - which lenders and offtakers will still price into their conversations. Our energy-transition and market-intelligence teams help clients build scenario planning that stays credible across delay paths.
• 𝘛𝘩𝘦 𝘜𝘈𝘌 𝘍𝘰𝘰𝘥 𝘉𝘢𝘯𝘬 𝘢𝘯𝘥 𝘋𝘶𝘣𝘢𝘪’𝘴 𝘊𝘰𝘮𝘮𝘶𝘯𝘪𝘵𝘺 𝘋𝘦𝘷𝘦𝘭𝘰𝘱𝘮𝘦𝘯𝘵 𝘈𝘶𝘵𝘩𝘰𝘳𝘪𝘵𝘺 (𝘊𝘋𝘈) 𝘩𝘢𝘷𝘦 𝘴𝘪𝘨𝘯𝘦𝘥 𝘢𝘯 𝘢𝘨𝘳𝘦𝘦𝘮𝘦𝘯𝘵 𝘵𝘰 𝘤𝘰𝘭𝘭𝘦𝘤𝘵 𝘢𝘯𝘥 𝘳𝘦𝘥𝘪𝘴𝘵𝘳𝘪𝘣𝘶𝘵𝘦 𝘴𝘶𝘳𝘱𝘭𝘶𝘴 𝘧𝘰𝘰𝘥 𝘧𝘳𝘰𝘮 𝘸𝘦𝘥𝘥𝘪𝘯𝘨𝘴 𝘢𝘯𝘥 𝘦𝘷𝘦𝘯𝘵𝘴. • 𝘛𝘩𝘦 𝘪𝘯𝘪𝘵𝘪𝘢𝘵𝘪𝘷𝘦 𝘸𝘪𝘭𝘭 𝘧𝘰𝘭𝘭𝘰𝘸 𝘢𝘱𝘱𝘳𝘰𝘷𝘦𝘥…
<ul><li><i>India’s rooftop solar capacity reached 30.7 GW in July 2026, increasing the need for better grid management and flexibility.</i></li><li><i>Kerala and Maharashtra are exploring battery ener…
• 𝘛𝘩𝘦 𝘌𝘐𝘉 𝘎𝘳𝘰𝘶𝘱 𝘱𝘭𝘢𝘯𝘴 𝘵𝘰 𝘱𝘳𝘰𝘷𝘪𝘥𝘦 𝘢𝘵 𝘭𝘦𝘢𝘴𝘵 €30 𝘣𝘪𝘭𝘭𝘪𝘰𝘯 𝘧𝘰𝘳 𝘤𝘭𝘪𝘮𝘢𝘵𝘦 𝘢𝘥𝘢𝘱𝘵𝘢𝘵𝘪𝘰𝘯 𝘣𝘦𝘵𝘸𝘦𝘦𝘯 2026 𝘢𝘯𝘥 2030. • 𝘛𝘩𝘦 𝘯𝘦𝘸 𝘵𝘢𝘳𝘨𝘦𝘵 𝘥𝘰𝘶𝘣𝘭𝘦𝘴 𝘢𝘥𝘢𝘱𝘵𝘢𝘵𝘪𝘰𝘯 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘯𝘨 𝘤𝘰𝘮𝘱𝘢𝘳𝘦𝘥 𝘸𝘪𝘵𝘩 𝘵𝘩𝘦 𝘱𝘳𝘦𝘷𝘪𝘰𝘶𝘴 𝘧𝘪𝘷𝘦-𝘺𝘦𝘢𝘳 𝘱𝘦𝘳𝘪𝘰𝘥. • 𝘍𝘶𝘯𝘥𝘪𝘯𝘨…