Policy weekly

India Wind Policy Weekly: 19 June 2026

KERC caps deviation charges for Karnataka's wind fleet, CERC enforces damages on a failed Tranche VII award, and a Global Wind Day stocktake reports 56.09 GW installed.

Anirudh Sharma·June 19, 2026·5 min read

Covering 13 to 19 June 2026. New deviation rules in Karnataka and a default ruling on a wind auction head the week. Every item is checked against the issuing authority's own document.

1. KERC notifies deviation settlement rules for wind, solar and hybrid sellers in Karnataka

KERC · 19 June 2026

The Karnataka Electricity Regulatory Commission (KERC) has notified the Forecasting, Scheduling, Deviation Settlement Mechanism and related matters for Sellers of Wind, Solar and WS-Hybrid Generation sources Regulations, 2026, in force from publication in the Karnataka Gazette. Karnataka had about 7,870.81 MW of wind, 738.30 MW of wind-solar hybrid and 10,585.84 MW of solar in April 2026; wind and solar are 50.50% of the State's 38,011 MW. Projects below 5 MW, around 1,500 MW in total, are already exempt. Deviation is measured against scheduled generation, not available capacity, with a deemed schedule of 1 MW where the schedule is zero but the plant generates. Tolerance bands free of charges are 10% for wind and hybrid, and 5% for solar, reduced from 10%.

For wind and wind-solar hybrid sellers within Karnataka, charges are Rs 0.25 per kWh beyond 10% up to 20%, plus Rs 0.50 per unit beyond 20% up to 30%, plus Rs 0.75 per unit beyond 30%. Annual deviation charges are capped at 3 paise per kWh multiplied by generation at the pooling substation or QCA, with any excess adjusted in later bills without interest; the cap is to be reviewed after 3 years. Schedule revisions take effect from the 7th or 8th time block, buyers are outside the framework, and sales outside Karnataka fall under the CERC DSM Regulations, 2024. Pooling stations may be aggregated for forecasting and scheduling, and turbine-level telemetry, including output and wind speed, must be provided to the state load despatch centre (SLDC).

Why it matters for wind: The 10% wind tolerance and the 3 paise per kWh annual cap bound the cost of forecast error for Karnataka's wind fleet. The compliance burden shifts to scheduling discipline: telemetry, aggregation and revision deadlines now sit with generators and their QCAs.

Source: KERC (Forecasting, Scheduling, DSM for Wind, Solar and WS-Hybrid) Regulations, 2026

2. CERC rejects force majeure claims and upholds damages for a defaulted 200 MW wind award

CERC · 19 June 2026 (Petition 235/MP/2021)

Betam Wind Energy Private Limited, of the Engie Group, won 200 MW in SECI's 1,200 MW ISTS wind Tranche VII auction for a project in Gujarat, with SECI to sell the power to UPPCL. It never signed the power purchase agreement (PPA), citing land consents in Gujarat, delays in Ministry of Defence clearance for an alternate site at Jam Khambaliya, COVID-19, the financial crisis at its turbine maker Suzlon, and delays in tariff adoption and power sale agreement approval. It sought discharge and the return of its Rs 40 crore performance bank guarantee.

CERC rejected the claims: the request for selection allowed a change of State until financial closure, defence clearance was not a condition precedent to signing the PPA, the choice of Suzlon and its non-performance were the developer's risk, and MNRE's COVID orders extended the commissioning date but did not excuse signing PPAs. Liquidated damages are a genuine pre-estimate of damages. SECI can recover an amount equal to the Rs 12 crore earnest money deposit plus GST, success charges, and delay charges for a 29-day late guarantee. UPPCL's claim to the encashed amount failed because those provisions apply only after a PPA is executed.

Why it matters for wind: Land, clearance and equipment risk sit with the auction winner until the PPA is signed, and the order supports recovery rather than return of the guarantee amounts. The Uttar Pradesh regulator had earlier noted that losing this project would cut the PSA from 380 MW to 280 MW and could raise the pooled tariff of Rs 2.8091 per unit.

Source: CERC order in 235/MP/2021

3. Global Wind Day stocktake reports 56.09 GW installed and a 100 GW target for 2030

PIB · 14 June 2026 (conference 15 June 2026)

India hosted the Global Wind Day 2026 conference in Goa on 15 June under the theme 'Wind Energy: From Ambition to Acceleration', with CEA, SECI, IREDA, NIWE, Grid India, state governments and industry taking part. The accompanying backgrounder puts installed wind capacity at 56.09 GW in March 2026, up from 21.04 GW in March 2014, with a record 6.05 GW added in 2025-26 against the previous record of 4.15 GW in 2024-25 and a further 28 GW under implementation. Gross potential is 695.5 GW at 120 metres and 1,163.9 GW at 150 metres. Targets are 100 GW by 2030 and 156 GW by 2036.

Turbine manufacturing capacity is about 24 GW as of March 2026, with 70-80% indigenisation across key components, and nearly 45% of wind generation falls in peak demand hours. Rs 500 crore was disbursed under the Generation Based Incentive scheme in 2025-26 and a 500 MW pilot under Contracts for Difference has been launched. Stated priorities include wind in Madhya Pradesh, Telangana and Odisha, offshore leasing off Gujarat and Tamil Nadu, round-the-clock storage-linked models, AI-based forecasting and turbine exports.

Why it matters for wind: Even the record 2025-26 addition leaves a wide gap to 100 GW by 2030, so the pace of tendering and the conversion of the 28 GW under implementation matter for the target. The incentive disbursement and the Contracts for Difference pilot are the support instruments currently in play.

Source: PIB, Global Wind Day 2026 backgrounder

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