Extension of Grid Norms for Wind and Solar Generators

The Central Electricity Regulatory Commission (CERC) in India has postponed the enforcement of stricter grid deviation norms for wind and solar power generators from April 2026 to April 2027. These norms are designed to penalize generators for producing more or less electricity than scheduled, impacting grid stability.

Current Deviation Norms

• Power generators must declare their electricity supply in advance.
• Deviation charges are imposed if actual generation does not match the scheduled supply, forcing grid operators to adjust other power sources.
• Renewable energy companies currently enjoy relaxed norms due to the intermittent nature of wind and solar power.

Reasons for Extension

• Renewable outputs are influenced by weather, complicating precise generation predictions.
• Stricter norms are planned to align renewable energy with conventional generators by 2031.
• Implementation is subject to pending writ petitions in the Delhi High Court.

Impact and Industry Concerns

• Industry players warn that tighter norms could reduce revenues and financial viability.
• Renewable energy constitutes over 50% of India's installed capacity but less than 30% of actual generation.

Grid Stability Concerns

• Rapid increase in renewables raises grid stability issues.
• Moderate forecasting errors can lead to significant deviations, affecting system balance and reserve deployment.
• Costs from deviations are ultimately borne by consumers if not internalized by generators.

Regulatory Changes and Pathways

• New deviation assessments will use a blended denominator of available capacity and scheduled generation.
• The weighting parameter “X” will be gradually reduced, moving assessment closer to scheduled generation.
• Separate trajectories for solar and wind due to differences in forecasting accuracy.
• For solar and hybrid projects, the permissible deviation band will narrow from +/- 10% to +/- 5%.
• For wind projects, it will reduce from +/- 15% to +/- 10%.

Overall, the CERC's approach aims to gradually integrate more stringent norms for renewable energy, addressing grid stability concerns while considering the unique challenges of forecasting renewable power generation.