The Central Electricity Regulatory Commission (CERC) has proposed amendments under the Deviation Settlement Mechanism and Related Matters Regulations, 2024, to revise the method for calculating deviations by wind and solar power sellers.
The proposed change is a part of a phased shift from available capacity to a blended denominator, including scheduled generation, based on stakeholder feedback. The deviations will continue to be calculated using only available capacity as the denominator. The proposal follows mixed feedback on whether scheduled generation, available capacity, or a weighted combination should be used.
Additionally, CERC noted that from April 2026, the revenue-neutral tolerance band will be narrowed from ±10 per cent to ±5 per cent for solar and wind-solar hybrid projects, and from ±15 per cent to ±10 per cent for wind projects.
Earlier in May 2025, CERC released draft guidelines for virtual power purchase agreements.
Furthermore, in December 2024, CERC notified the CERC (Deviation Settlement Mechanism and Related Matters) Regulations, 2024.
