Karnataka revises electricity codes for renewable growth and grid stability

The Karnataka Electricity Regulatory Commission (KERC) has notified three major regulatory updates to strengthen grid operations, improve compliance, and support the state’s renewable energy transition. The revised Karnataka Electricity Grid Code (KEGC), 2025, Karnataka Electricity Distribution Code (KEDC), 2025, and Intra-State Deviation Settlement Mechanism Regulations, 2025 were issued in mid-July 2025 and replace earlier frameworks from 2015 and 2006.

The updated KEGC, notified on 17 July 2025, introduces new operational rules for integrating solar, wind, and hybrid power. It mandates must-run status for renewable energy projects unless grid stability is at risk and strengthens scheduling, forecasting, and curtailment reporting through Qualified Coordinating Agencies. Grid frequency must be maintained between 49.90 and 50.05 Hz, with generators required to adjust output by ±5 percent to aid frequency control. New penalties and incentives are introduced for reactive power drawal and injection. Distribution licensees must install under-frequency relays and protection schemes to prevent cascading outages. A Grid Code Review Panel will oversee implementation, with sub-committees for operations and protection.

The revised KEDC, notified on the same date, updates planning, operation, and safety standards for distribution licensees. It standardises infrastructure design, mandates the establishment of Distribution Control Centres for real-time monitoring, and introduces automatic load shedding protocols. Power quality must comply with IEEE 519-2014 standards, with bulk consumers required to install meters to monitor harmonics and voltage. Distribution companies must submit monthly reliability indices such as SAIDI and SAIFI to KERC. Energy audits at feeder and transformer levels are required to reduce technical and commercial losses. A Distribution Code Review Panel led by BESCOM will manage updates and resolve disputes.

The new intra-state deviation settlement mechanism, notified on 15 July 2025, replaces the 2006 ABT framework. It imposes financial penalties on generators, licensees, and open-access consumers for deviations from scheduled power injection or drawal. Charges are linked to grid frequency and market prices. Under-injection during low-frequency conditions can attract penalties up to 200 percent of the reference rate. Renewable generators other than solar, wind, and hybrid face penalties for deviations beyond 20 percent. Run-of-river hydro plants have a tighter 15 percent deviation limit with fixed charges. The State Load Despatch Centre will enforce the rules, manage a State Deviation Pool Account, and issue monthly deviation statements. Delayed payments will incur daily interest.

These regulatory changes reflect Karnataka’s efforts to modernise grid operations and address the challenges of growing renewable energy deployment. The updates are in line with the Electricity Act, 2003, and recent national reforms to improve system reliability and meet India’s 2030 non-fossil capacity target of 500 GW.

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