- CERC’s tighter green power regulations could significantly affect India’s clean energy investments by reducing profit margins and increasing operational risks.
- By enforcing stricter compliance, CERC aims to improve grid reliability, but may unintentionally slow the growth of the renewable sector.
India’s renewable energy sector may face slower growth under the Central Electricity Regulatory Commission’s (CERC) proposed tighter green power regulations. The new framework, released in September 2025, requires solar and wind producers to closely match their committed power supply to the grid under the Deviation Settlement Mechanism (DSM).
Starting in April 2026, CERC plans to gradually reduce the allowable deviation margins, with renewable producers expected to meet the same strict standards as conventional power plants by 2031. The move aims to enhance forecasting accuracy and grid reliability as renewables become an increasingly significant part of India’s energy mix.
However, industry groups such as the Wind Independent Power Producers Association (WIPPA) and the National Solar Energy Federation of India (NSEFI) warn that the new rules could hurt project revenues and deter future investment. WIPPA estimates that some wind projects could lose nearly 48% of revenue due to unpredictable weather conditions and penalties for deviations.
Both organisations argue that these tighter rules may create financial stress for developers and undermine India’s clean energy expansion goals. Despite industry pushback, CERC maintains that the regulations are necessary for ensuring grid stability and operational discipline.
Ultimately, the challenge lies in finding a balance between regulatory compliance and renewable flexibility. If implemented without adjustment, CERC’s tighter green power regulations could slow India’s progress toward its 2030 target of 500 GW of non-fossil fuel capacity.