KERC issues draft regulations on forecasting, scheduling, and deviation settlement for RE

The Karnataka Electricity Regulatory Commission (KERC) issued a draft notification on 10 December 2025 proposing the Karnataka Electricity Regulatory Commission (Forecasting, Scheduling, Deviation Settlement Mechanism and related matters for Sellers and Buyers of Wind, Solar and RE Hybrid Generation sources) Regulations, 2025. The draft aims to replace the 2015 framework to address grid stability concerns arising from higher renewable penetration and to align with the Karnataka Electricity Grid Code 2025.

Rationale and scope

The draft is issued under the Electricity Act, 2003. KERC notes Karnataka’s significant renewable profile, with an estimated potential of 1,55,074 MW and installed RE capacity of about 15,942.98 MW as of June 2025. The Commission states that higher RE penetration poses grid stability challenges and requires a more effective deviation discipline framework with tighter tolerance bands and clear commercial settlement mechanisms.

The regulations apply to wind generators of 10 MW and above, solar generators of 5 MW and above, wind solar hybrid projects of 5 MW and above, and buyers with contracted capacity of 1 MW and above.

Role of QCA and scheduling framework

A central feature is the strengthened role of the Qualified Coordinating Agency, which will act as the nodal entity for groups of generators or buyers for forecasting, scheduling, and financial settlement with the State Load Despatch Centre.

Generators and buyers must provide week ahead, day ahead, and intra day schedules in 15 minute time blocks. Renewable energy sources receive scheduling priority, but the commercial liability for deviations remains with generators or buyers, either directly or through their QCA.

Deviation Settlement Mechanism

The draft introduces defined permissible deviation bands beyond which charges apply. The tolerance limit is ±10% for wind and hybrid generators, ±5% for solar generators, and ±5% for buyers. Energy storage systems paired with RE sources have zero tolerance.

Charges escalate with the deviation range. For example, wind generators exceeding the ±10% range by up to 20% will pay Rs 0.25 per kWh for energy in that slab, increasing to Rs 0.50 and Rs 0.75 per kWh for higher deviation bands. Similar graduated structures apply to solar generators and buyers. All DSM charges will be deposited into a State Deviation Pool Account maintained by the SLDC.

Metering, telemetry, and compliance

The draft requires Special Energy Meters with automated meter reading and IoT capability at interface points, along with detailed data telemetry to the SLDC. No deviation charges will apply in cases of planned curtailment by grid operators if communication protocols are followed.

For persistent violations, provisions include revocation of registration and encashment of bank guarantees. The regulations explicitly address gaming practices, allowing KERC to initiate proceedings where intentional misdeclaration is suspected.

Implementation timeline and use of funds

Stakeholders may submit comments to the Secretary, KERC by 13 January 2026. The regulations will take effect upon publication in the Karnataka Gazette and will repeal the 2015 regulations.

Funds collected in the Deviation Pool Account will be used for grid strengthening, congestion relief, improving voltage profiles, and modernizing transmission systems with Commission approval.

The featured photograph is for representation only.