The Ministry of New and Renewable Energy (MNRE) has formally requested the Central Electricity Regulatory Commission (CERC) to review its recently proposed draft regulations for renewable energy producers, citing concerns that the tighter rules may dampen investor interest in the clean-energy sector.
Rediff.

Under the draft framework, published in September 2025, CERC seeks to bring renewable-power generators — specifically from wind and solar — under stricter control within the Deviation Settlement Mechanism (DSM). The plan envisages gradually narrowing the tolerance margin between committed power supply and actual generation. From April 2026, deviations beyond the permitted limit could attract penalties, with the margin shrinking further on an annual basis until 2031, when renewables may be treated on par with conventional power generators.

In a letter to CERC, MNRE argued that imposing strict deviation penalties could undermine the economics of green-power projects, especially as output from wind and solar plants remains highly dependent on unpredictable weather — a factor beyond developers’ control. The ministry warned that the move could discourage fresh investments, particularly from small and medium-sized firms, thereby jeopardizing India’s broader ambition of reaching 500 GW of non-fossil fuel capacity by 2030.

The concern echoes warnings from industry bodies that the new norms may dent revenue streams and delay new projects. In response, MNRE has urged CERC to engage with stakeholders, and recommended that future policy instead explore mandating energy storage integration and deploying better weather-data analytics to improve forecast accuracy — rather than relying on punitive deviation charges.

As of now, CERC has not announced a final decision, leaving the renewable energy sector awaiting clarity at a critical juncture for India’s clean-energy push