Policy weekly

India Wind Policy Weekly: 25 September 2026

MERC has proposed scheduled-generation settlement and new access rules for Maharashtra wind, and CERC's draft grid code amendment adds congestion charges and a three-month cap on infirm-power extensions.

Anirudh Sharma·September 25, 2026·5 min read

Covering 19 to 25 September 2026. Maharashtra and CERC both issued drafts this week that set how wind projects connect, schedule and settle. Every item is checked against the issuing authority's own document.

1. MERC proposes to move wind to settlement on scheduled generation with a tightening error band

MERC · 21 September 2026 (draft)

MERC has circulated a draft Second Amendment to its Forecasting, Scheduling and Deviation Settlement Regulations for solar and wind. Intra-State wind, solar and hybrid generators would move to settlement on Scheduled Generation from a date MERC will notify, not later than 1 April 2028 and with at least three months' notice. Until then the existing rules apply, and the state load despatch centre (SLDC) would run parallel trial accounts for at least three monthly cycles.

The error parameter X, used to compute absolute error, would be 100 for wind in 2026-27, then 95, 85, 65 and 35, and 0 from 1 April 2031; solar and wind-solar hybrid would move from 90 to 75, 55, 30 and 0. Wind volume limits are 10% and 15%. Over-injection above the second limit earns nothing; under-injection above it is charged at 200% of the Contract Rate. Generators without a power purchase agreement (PPA) with distribution licensees would use the state marginal station's variable cost, capped at Rs 10/kWh. Projects awarded by competitive bidding with a bid deadline on or after 1 January 2027, or any other project commissioned on or after 1 January 2029, would instead fall under the general-seller deviation rules. Auxiliary power up to 1% of installed capacity would attract no demand charges.

Why it matters for wind: Operating wind projects in Maharashtra would see deviation exposure tighten year by year to 2031, and the 200% charge for deep under-injection puts a clear price on weak forecasting. Projects bid from 2027 or commissioned from 2029 sit outside this regime, so the rules differ by project vintage.

Source: MERC draft Forecasting, Scheduling and Deviation Settlement for Solar and Wind Generation (Second Amendment) Regulations, 2026

2. CERC's draft grid code amendment adds a congestion charge and caps infirm-power extensions

CERC · 21 September 2026 (draft notification No. L-1/265/2022/CERC)

CERC has circulated a draft Second Amendment to the Indian Electricity Grid Code, with comments due by 21 October 2026. Infirm power would be renamed inter-change of power. Extensions would need reasons for the delay and an application at least 10 days before the requested start date, with cumulative extensions capped at three months. Scheduling would be allowed only after a certificate of successful trial run. Where the contract has no pre-commercial-operation provision, the power would first be offered to contracted buyers with at least seven days' notice; no reply would count as refusal, after which third-party sales are allowed.

A new congestion charge would be levied on top of deviation charges, with a warning when flows cross available transfer capability and the charge when they exceed total transfer capability, at least two clear time blocks' notice, payment within 10 days and interest of 0.04% per day on delay. Entities in default would have their transmission general network access regulated entirely from 75 days after the account for unpaid deviation settlement, congestion or reactive energy charges; two months later, short-term contracts under general network access would also be regulated and other schedules cut by 5% for each month of default. Standalone energy storage systems would follow staged trial-run instalments from 50 MW. The scheduling changes would apply from 1 April 2027 and the rest on gazette notification.

Why it matters for wind: Wind projects between trial run and commercial operation depend on infirm-power arrangements, and the draft caps total extensions at three months. The congestion charge is an added cost whenever corridors run full, so it belongs in operating models.

Source: CERC draft Indian Electricity Grid Code (Second Amendment) Regulations, 2026

3. MERC drafts intra-State connectivity rules covering wind plants of 5 MW and above

MERC · 21 September 2026 (draft)

MERC has proposed draft intra-State transmission connectivity and general network access (GNA) regulations for Maharashtra. A wind plant or energy storage system of 5 MW or more, alone or aggregated through a lead generator, could seek non-solar-hour access at identified substations or full-day access. Co-located hybrids, with or without storage, could apply for connectivity equal to their largest renewable source or their storage capacity; non-co-located hybrids would need separate connectivity at each connection point. Existing solar-led hybrids would move to solar-hour access within six months of the rules taking effect, with a right to apply for full-day access in that period. Entities taking differential access would have to install the prescribed storage within 24 months.

The transmission-level application fee is Rs 1.0 lakh. Connectivity bank guarantees would have three parts: Rs 5 lakh for renewable and storage applicants, a per-bay amount of Rs 3 crore at 220/230 kV or Rs 6 crore at 400 kV, and Rs 2.0 lakh per MW. Where grid augmentation is needed, the bay guarantee for it is capped at Rs 20 lakh per MW. Guarantees fall due within one month of in-principle grant, failing which the application is closed and the fee forfeited. The draft does not state a comment deadline.

Why it matters for wind: This is the access framework wind projects in Maharashtra would apply under, and it fixes how hybrids and storage co-location change what a project can connect for. The one-month bank guarantee deadline makes the timing of connectivity applications a hard constraint.

Source: MERC draft Intra-State Transmission Connectivity and General Network Access Regulations, 2026

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