The Central Electricity Regulatory Commission (CERC) has revised the Deviation Settlement Mechanism (DSM) framework for new wind and solar power projects in India.
Under the Deviation Settlement Mechanism and Related Matters (Third Amendment) Regulations, 2026, new wind and solar projects will be subject to the same deviation settlement rules applicable to general electricity sellers.
The amended regulations are scheduled to come into effect on August 31, 2026. The changes are aimed at strengthening the management of deviations between scheduled and actual power generation.
Under the revised framework, renewable energy generators will need to maintain greater accuracy in power forecasting and scheduling. Deviations from scheduled generation may result in financial charges under the applicable DSM provisions.
The move is significant for India’s growing renewable energy sector, as increasing solar and wind capacity requires stronger forecasting, scheduling and grid-balancing mechanisms.
The revised rules are expected to encourage renewable energy developers to improve generation forecasting and grid compliance, supporting more reliable integration of solar and wind power into India’s electricity system.
