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The Ministry of New and Renewable Energy (MNRE) has asked the Central Electricity Regulatory Commission (CERC) to revisit its draft rules for wind and solar projects under the Deviation Settlement Mechanism, as the proposed norms may discourage new investments. The draft framework, scheduled for implementation in April 2026, seeks to narrow the gap between committed and actual power generation. With India targeting 500 GW of renewable capacity by 2030, experts believe the sector must add around 50 GW annually. Concerns have also grown over nearly 40 GW of projects awaiting power sale agreements, which are essential for financing.
The Ministry of New and Renewable Energy (MNRE) has written to the Central Electricity Regulatory Commission (CERC) requesting a review of its draft regulations for renewable energy generators. According to sources, the ministry believes the proposed norms could slow down investment in the wind and solar sectors at a time when the country is working to expand clean energy capacity. Advertisement
CERC had issued its draft framework for renewable power producers under the Deviation Settlement Mechanism a few months ago. The guidelines, expected to come into effect in April 2026, aim to reduce the permissible difference between the power promised and the power delivered. The commission introduced this draft to bring more accuracy in forecasting and scheduling of renewable energy generation, which has been a long-standing operational challenge.
A source aware of the matter said MNRE has asked the regulator to re-examine the proposal and share its feedback. The ministry's request comes against the backdrop of India's target of achieving 500 GW of renewable energy capacity by 2030. Industry experts have repeatedly stated that the country will need to add at least 50 GW of clean energy capacity every year to meet this goal, noting that stable policies are crucial for sustaining investor confidence.
As per Central Electricity Authority (CEA) data, India's renewable capacity stood at around 250 GW by the end of October 2025. This includes 130 GW of solar, 54 GW of wind, 10 GW of biomass, and about 50 GW from large hydro projects above 25 MW. While capacity additions have grown steadily in recent years, challenges around project development and approvals continue to impact momentum.
One major concern is the pending power sale agreements for nearly 40 GW of renewable projects. These agreements are essential for developers to secure financing and begin construction. The issue has been raised several times by senior government officials, who have stressed the need for timely approvals to maintain progress toward the 2030 target.
The ministry's communication to the regulator reflects growing caution within the renewable sector over policy changes that may create uncertainty for upcoming investments. The discussion between MNRE and CERC is expected to shape the final form of the regulations once the draft goes through consultation and review.
Source PTI
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