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CERC · Final regulation · 25 August 2026 · In force from 31 August 2026

CERC (Deviation Settlement Mechanism and Related Matters) (Third Amendment) Regulations, 2026

CERC has notified the third DSM amendment, bringing future wind and solar projects under the same deviation rules as general sellers. It took effect on 31 August 2026.

Why it matters. Forecasting and scheduling accuracy now carries a direct cost for new RE, which strengthens the case for co-located storage.

What changes

  1. Future wind and solar projects settle deviations on the same basis as general sellers, ending their separate treatment.
  2. Also revises provisions for energy storage and timelines for deviation payments.
  3. Final rules follow a draft of 27 May 2026 and written comments from 41 stakeholders.
  4. Builds on CERC's 2026 phase-down of the wind and solar X-factor: 100% in 2026-27 falling to 0% from April 2031, with tolerance bands narrowing to ±5% for solar and ±10% for wind.

Who is affected

Wind generators · Solar generators · Storage operators · Discoms · RLDCs

Notified 25 Aug 2026 (No. L-1/260/2021/CERC); published in the Gazette on 7 Sep 2026.

Sources

Last checked 11 October 2026. Summary for information; rely on the official gazette text.

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