Regulatory Updates

Regulatory Updates | India

CERC proposes compensation charges for GNA timeline extensions
By April 16, 2026April 16, 2026

The Central Electricity Regulatory Commission (CERC) has issued a draft procedure to levy compensation charges on connectivity grantees seeking additional time to meet key project milestones under the General Network Access (GNA) Regulations, 2022. The proposal, introduced through Petition No. 5/SM/2026, aims to standardise the treatment of extension requests for submission of land documents, achieving financial closure (FC), and achieving commercial operation date (CoD). CERC has exercised its powers under Regulations 41 and 42 of…

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CERC allows withdrawal option for stalled RE connectivity cases
By April 16, 2026April 16, 2026

The Central Electricity Regulatory Commission (CERC) has issued an order in Petition No. 666/MP/2025, allowing renewable energy developers an optional withdrawal window where final connectivity grants have been delayed due to transmission planning constraints flagged by the Central Transmission Utility of India Limited (CTUIL). The order, dated April 10, 2026, stems from a petition filed by Saurya Urja Company of Rajasthan Limited (SUCRL). The developer had sought relief from strict land document submission timelines under…

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CERC clears over 13,000 MW in March adoption orders
By April 10, 2026April 10, 2026

The Central Electricity Regulatory Commission issued a batch of tariff adoption orders through March 2026, clearing over 13,000 MW of generation capacity across solar, wind-solar hybrid, and firm dispatchable renewable energy projects. The orders, passed under Section 63 of the Electricity Act, 2003, cover tenders floated by NTPC, SECI, SJVN, and NHPC. While most adoptions were routine, several raised compliance and procedural questions that the Commission addressed directly. Tariffs at a glance Solar PV tariffs…

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CERC sets phased X-factor reduction for RE deviation, keeps FY27 unchanged
By April 2, 2026April 2, 2026

The Central Electricity Regulatory Commission (CERC) has finalised a phased reduction trajectory for the “X” parameter used to compute deviation percentages for wind and solar generators, introducing differentiated timelines for the two technologies while retaining the existing methodology for FY 2026–27. The order, dated March 31, 2026, resolves a key issue left open under the CERC (Deviation Settlement Mechanism and Related Matters) Regulations, 2024, how to transition the deviation formula denominator from available capacity to…

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CERC defers DSM reserve-sharing mechanism by six months
By March 31, 2026March 31, 2026

The Central Electricity Regulatory Commission (CERC) has extended the timeline for implementing a key provision under the Deviation Settlement Mechanism (DSM) Regulations, 2024. The order, issued suo motu on March 30, 2026, delays the shift to a reserve-shortfall-based deficit sharing mechanism by six months. The decision follows operational constraints in establishing a framework for quantifying and settling grid reserves, as flagged by Grid India and the National Load Despatch Centre (NLDC). Current mechanism to continue…

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Supreme Court rules GBI must be paid over and above tariff
By March 26, 2026March 26, 2026

The Supreme Court of India has held that the Generation Based Incentive (GBI) scheme introduced by the Ministry of New and Renewable Energy (MNRE) is to be paid to renewable energy generators over and above the tariff determined by state electricity regulatory commissions. A bench of J.S. Narasimha and Jatul S. Chandurkar dismissed an appeal filed by Southern Power Distribution Company of Andhra Pradesh Limited and another, upholding the judgment of the Appellate Tribunal for…

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CERC notifies 2026 amendments to REC regulations, introduces multipliers and VPPA framework
By March 26, 2026March 26, 2026

The Central Electricity Regulatory Commission (CERC) has notified the CERC (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) (First Amendment) Regulations, 2026, revising the renewable energy certificate (REC) framework with the introduction of a structured multiplier system and provisions for virtual power purchase agreements (VPPAs). The amendments take effect from the date of publication in the Official Gazette. They introduce new definitions, including “designated consumer” under the Energy Conservation Act, 2001, “renewable…

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CERC notifies tariff framework for co-located battery storage systems
By March 22, 2026March 22, 2026

The Central Electricity Regulatory Commission (CERC) has notified the Terms and Conditions of Tariff (Second Amendment) Regulations, 2026, establishing a tariff framework for battery energy storage systems (BESS) co-located with coal, lignite, and gas-based thermal generating stations, as well as interstate transmission infrastructure. Supplementary tariff for integrated storage The amendment introduces a supplementary tariff structure to recover costs of storage assets integrated with existing generating stations or transmission systems. It provides for separate fixed storage…

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CERC notifies February 2026 coal escalation rates
By March 20, 2026March 20, 2026

The Central Electricity Regulatory Commission (CERC) has notified monthly escalation rates for February 2026 applicable to payments under power purchase agreements (PPAs) executed by distribution licensees. Escalation rates CERC has specified the following rates for February 2026: Imported coal: 0.62% Transportation of imported coal: 4.27% Inland handling of imported coal: 0.57% These rates are used in tariff adjustments under competitively bid PPAs. Regulatory basis The notification has been issued under Clause 5.6(vi) of the Ministry…

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CERC allows delayed RE projects to retain ISTS connectivity with penalty
By March 18, 2026March 18, 2026

The Central Electricity Regulatory Commission (CERC), through its order dated March 2, 2026, has allowed three renewable energy developers—Serentica Renewables India 4 Pvt. Ltd., ReNew Green Energy Solutions Pvt. Ltd., and ReNew Green (MHP One) Pvt. Ltd.—to retain inter-state transmission system (ISTS) connectivity despite delays in achieving commercial operation. The relief is subject to payment of compensation. Following the order, the Central Transmission Utility of India Limited (CTUIL) has calculated and published the compensation payable…

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