Covering 22 to 28 August 2026. One regulation change with a long lead time for new wind-solar projects. Every item is checked against the issuing authority's own document.
1. CERC ends relaxed deviation charges for new wind-solar projects
CERC · 25 August 2026
The Central Electricity Regulatory Commission (CERC) has notified the Third Amendment to its Deviation Settlement Mechanism (DSM) Regulations, 2024 (Notification No. L-1/260/2021/CERC), in force from 31 August 2026. A new clause 8(4A) treats deviation charges for a wind-solar (WS) seller at par with general sellers for projects under the bidding route with tendering or bid submission dates on or after 1 January 2027, and for other projects with a date of commercial operation on or after 1 January 2029. Existing projects keep the relaxed treatment under clause 8(4). The cut-off dates are those in the May draft (see the 29 May edition).
The Statement of Reasons records comments from 41 stakeholders, due 26 June 2026, and a public hearing on 30 June 2026. Generators and associations objected, citing higher tariffs and lower returns, especially for wind. CERC retained the clause, saying the distinction is between projects developed under different regulatory environments, that new projects can price the DSM framework into bids, financing and contracts, and that hybrid, FDRE, round-the-clock and storage projects are improving schedule adherence. CERC noted that Regulations 6(2)(b) and 8(4) are under challenge before the High Courts of Karnataka and Delhi, which have passed interim orders, but held that the amendment is prospective and not barred. For a pooling station with both existing WS sellers and new WS sellers at par with general sellers, Grid India will develop operational arrangements, with CERC approval, well before 1 January 2029. The amendment also lets standalone energy storage systems be paid for infirm power at the normal deviation rate up to Rs 2.00/kWh, and changes payment timelines for deviation charges.
Why it matters for wind: Wind capacity bid from 2027 or commissioned from 2029 will carry full deviation charges, so schedule risk must be priced into bids, financing and contracts. Existing projects keep the relaxed treatment, though the High Court challenges to the underlying DSM provisions leave that position partly open.