A regulatory effort to stabilize the national power grid and make green power more reliable may harm the revenues of producers and potentially lead to tariff hikes, industry executives warned.
The Central Electricity Regulatory Commission (CERC) has proposed steep penalties for companies under- or over-producing power, rattling solar and wind power firms dependent on weather vagaries.
The CERC has set a tolerance band of 10% for wind power and 5% for solar, meaning companies producing above or below these thresholds are liable to pay steep penalties.
According to developers, the new deviation rules are hard to follow, since wind and solar are unstable sources of power.
The penalties may cause revenue losses of up to 48% in the case of wind power and 11.1% in the case of solar power, compared to 1-3% losses under the old mechanism.
India's renewable energy capacity stood at 274.68GW as of 31 March, with an addition of 51GW in FY26 alone.
