New Delhi: India’s Ministry of New and Renewable Energy (MNRE) has urged the country’s central power regulator to defer the implementation of stricter rules aimed at wind and solar power producers, warning that immediate enforcement could disrupt investment and hinder the growth of the renewable energy sector. The request comes amid growing concerns that the proposed regulations, designed to tighten compliance under the Deviation Settlement Mechanism, may unfairly penalize producers for fluctuations in output caused by unpredictable weather patterns, which are beyond their control.
The draft regulation, issued by the Central Electricity Regulatory Commission (CERC) in September, was originally scheduled to take effect in April 2026. It proposes a stricter framework to ensure that renewable energy producers meet the supply commitments they declare, with heavy penalties for deviations. In its communication to the regulator, MNRE highlighted that such penalties could disproportionately affect small and medium-scale renewable energy companies, potentially undermining investor confidence and slowing India’s ambitious transition to a low-carbon energy future.
Rather than immediate punitive measures, the ministry recommended alternative solutions to manage grid stability and energy forecasting challenges. These include incorporating energy storage solutions alongside new projects and leveraging advanced weather data to create more realistic forecasting norms. Officials emphasized that these approaches would support sectoral growth while maintaining reliability and efficiency on the grid, without discouraging the participation of emerging renewable energy producers.
India is targeting a total non-fossil fuel power capacity of 500 GW by 2030, a goal that places wind and solar energy at the center of its energy transformation strategy. However, the ongoing debate over regulatory stringency underscores the complex balance the government must achieve between encouraging rapid renewable energy expansion and enforcing standards that maintain grid integrity. As the final decision on the draft regulations remains pending, stakeholders across the sector are closely watching for measures that protect both investors and the country’s clean-energy ambitions.