The Central Electricity Regulatory Commission (CERC) has issued a proposal under the Deviation Settlement Mechanism and Related Matters Regulations, 2024 to revise the formula for computing deviations by wind and solar sellers.
The proposed change is part of a phased shift from “available capacity” to a blended denominator including “scheduled generation,” based on stakeholder feedback. The deviations will continue to be calculated using only available capacity as the denominator. The proposed changes follow feedback received during the draft regulation phase with stakeholders divided between using scheduled generation, available capacity or a weighted mix of both for deviation calculations. CERC also noted that starting April 2026, the revenue-neutral tolerance band will reduce from ±10 per cent to ±5 per cent for solar and wind-solar hybrid generating stations and from ±15 per cent to ±10 per cent for wind generating stations.