The Central Electricity Regulatory Commission (CERC) has proposed changes to the framework governing deviation settlement, infirm power injection, and payment timelines.

The draft CERC (DSM and Related Matters) (Third Amendment) Regulations, 2026, revise definitions linked to the weighted average Area Clearing Price (ACP), introduce new deviation charge treatment for wind-solar sellers, specify deviation charges for storage systems, including pumped hydro storage projects, and modify the timeline for payment of deviation charges.

The Commission has proposed replacing the reference to the weighted-average ACP of Integrated Day-Ahead Market segments for the respective time block with the daily weighted-average ACP of those market segments for the day.

For wind-solar sellers, the draft inserts a new clause stating that deviation charges will be treated on par with those for general sellers for projects with tendering or bid submission dates on or after January 1, 2027, and for other projects with commercial operation dates on or after January 1, 2029.

The draft also clarifies that deviation charges for a standalone energy storage system, namely a pumped hydro storage project, will be computed at the energy charge rate specified in the CERC Tariff Regulations, 2024.

In addition, the standalone energy storage system’s infirm power injected into the grid from the first synchronization until the successful completion of the trial run will be paid at the normal deviation charge rate for each time block, subject to a ceiling of ₹2 (~$0.0209)/kWh.

The Commission also proposes replacing the existing 10-day payment timeline with the timeline set out in the detailed procedure for implementing, maintaining, and operating the National Deviation and Ancillary Services Pool Account.

Recently, CERC proposed a new framework for grid connectivity withdrawal, energy storage systems, land bank guarantees, source change, return of connectivity bank guarantees, drawee connectivity, and transfer of general network access.

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