Policy weekly

India Wind Policy Weekly: 3 April 2026

CERC keeps the deviation tolerance factor X at 100% for wind until March 2027, then steps it down to zero by April 2031.

Anirudh Sharma·April 3, 2026·2 min read

Covering 28 March to 3 April 2026. One order this week, and the most important deviation decision of the year for wind. Every item is checked against the issuing authority's own document.

1. CERC phases down the value of X for wind and solar sellers to zero by 2031

CERC · 31 March 2026 (Petition 9/SM/2025)

In a suo motu order, CERC fixed the trajectory of the value of X, the deviation norm for wind and solar (WS) sellers under the Deviation Settlement Mechanism (DSM), including for stations aggregated at a pooling station. From 1 April 2026 the value stays at 100% for the first year, to 31 March 2027, then falls each year to zero from 1 April 2031. Wind gets a slower path than solar and wind-solar hybrids: 100%, then 95%, 85%, 65% and 35% in the four years to March 2031, against 100%, then 90%, 75%, 55% and 30% for solar and hybrids.

CERC kept the reduction small at first because few wind and solar entities have yet opted to aggregate at pooling stations, which smooths variability. It also directed its staff to start amending the DSM Regulations so that existing wind and solar projects are treated at par with general sellers from 1 April 2031, new projects with tendering or bid submission dates on or after 1 April 2026 are treated at par with general sellers, and existing sellers are not paid for over-injection when frequency is at or above 50.05 Hz. Enforcement is subject to writ petitions pending before the Delhi High Court, and no coercive action is to be taken while interim orders continue.

Why it matters for wind: Deviation settlement for wind is unchanged until March 2027, then tightens every year, so forecasting accuracy and pooling-station aggregation become revenue questions. The proposed general-seller treatment for projects bid from April 2026 is not yet law, but bids being priced now should allow for it.

Source: CERC suo motu order 9/SM/2025 (value of X for WS sellers)

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