India's clean energy ministry urges power regulator to defer stricter green power rules

India's renewable energy ministry has urged the power regulator to delay plans for stricter rules requiring wind and solar producers to stick more closely to their grid supply commitments, warning the move could deter investment.

The Central Electricity Regulatory Commission (CERC), in a draft published in September, proposed tighter regulations for wind and solar power producers under the Deviation Settlement Mechanism.

The proposed framework aims to gradually narrow the permissible gap between the amount of electricity producers commit to supply and what they actually generate and was supposed to come into effect from April 2026.

However, the renewable energy ministry said in a 21 October letter to the CERC, reviewed by Reuters, that forecasting errors for renewable plants were largely driven by unpredictable weather conditions, making penalties for deviations "imprudent" and beyond developers' control.

Earlier this month, Reuters reported that many industry stakeholders had written to the regulator, saying that the proposed plan would slow investment in clean energy.

The ministry said higher deviation charges could deter small and medium-sized firms and "have a catastrophic effect" on the clean energy industry.

It urged the regulator to consult stakeholders and suggested mandating clean energy storage in future projects instead of imposing strict penalties. It also recommended using improved weather data to set realistic forecasting limits.

India sees wind and solar as key drivers in its energy transition, where it is aiming to double non-fossil-based power capacity to 500 gigawatts by 2030.

The ministry and CERC did not immediately respond to requests for comment. The CERC has not set a date for its final decision.