India’s new targets more than double the country’s non-fossil-based power capacity to 500 gigawatts (GW). This audacious target lies at the heart of the country’s continuing energy transition. Central Electricity Regulatory Commission (CERC) has recently issued a draft of new regulations. These regulations are meant to increase the reliability of the nation’s electricity grid as renewable energy sources continue to play a larger role in the country’s overall energy portfolio. Yet, these proposed changes have sparked alarm among industry stakeholders—especially those making long-term investments in the sector—about their possible chilling effect on investments.
On September 30, 2025, CERC implemented stricter regulations for wind and solar energy producers. These rules are leading renewable energy producers to precisely synchronize their green power deliveries on a minute-by-minute basis to the grid. This new initiative is intended to disincentivize renewable generators from over-forecasting and overscheduling. The broader objective is to improve grid reliability as renewables assume an ever more major role in India’s energy future.
Proposed Regulations and Their Impact
The impact of these newly proposed regulations could be enormous financially for renewable energy developers. Industry experts caution these policy changes could lead to revenue reductions of 36-48% for some wind projects. The Wind Independent Power Producers Association expressed strong concerns, stating:
“These penalties could cause huge losses, especially for older projects that were built under different rules.” – Wind Independent Power Producers Association
Beginning in April 2026, we will change how we calculate delivery power deviations. Shipper-friendly stakeholders are concerned that tightening tolerance margins—with new standards coming into effect annually until 2031—could put project viability at risk for many companies. To bring greater grid discipline, the CERC aims to bring domestic renewable generators on par with conventional power plants by 2031. Reaching this ambitious goal might come at a high price tag for established projects.
Industry Concerns and Legal Challenges
The federation of renewable energy producers has voiced apprehensions that the proposed rules may discourage future investments in India’s clean energy sector. In April, they filed a lawsuit against last year’s regulations on supply deviation and resource planning. Stakeholders emphasize that while promoting grid discipline is essential, the accompanying penalties could disincentivize investment in renewable projects that are pivotal for meeting India’s energy targets.
The changes would be especially welcome at this crucial juncture for India. The nation plans to increase its renewable energy generation capability and decrease the country’s dependence on fossil fuels. To put 500 GW of non-fossil fuel power on the grid by 2030, we need to find the right tuning between heavy-handed regulatory stick and friendly investment carrot. That balance is more important than ever today.
The Road Ahead
Meanwhile, India is making great progress to establish a greener energy future. We look forward to seeing the proposed regulations implemented and will be watching every step of the way. Industry leaders are calling for more nuance that takes into account the unique challenges that renewable energy producers experience. They say it’s important to recognize the difficulties of renewable energy generation. This understanding will inform sensible, supportive regulations that enable growth while keeping the grid reliable.