Daily News Wrap-Up: KERC Plans to End Cross-Subsidy, Surcharge by FY 2029

RERC approved procedure for granting GEOA in the state

December 22, 2025

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The Karnataka Electricity Regulatory Commission (KERC) issued the draft Karnataka Electricity Regulatory Commission (Roadmap for Reducing Cross-Subsidy and Cross-Subsidy Surcharge) Regulations, 2025. The draft regulations seek to formally establish a time-bound roadmap for reducing tariff cross-subsidies across consumer categories and to align retail tariffs more closely with the cost of supplying electricity, consistent with statutory requirements and national tariff policy objectives.

The Rajasthan Electricity Regulatory Commission (RERC) approved the detailed procedure for granting green energy open access (GEOA) in the state in line with the RERC (Terms and Conditions for Green Energy Open Access) Regulations, 2025. RERC had issued the GEOA Regulations, 2025, in July 2025, to promote the use of renewable energy through open access.

The West Bengal Electricity Regulatory Commission granted CESC approval to procure 600 MW of wind-solar hybrid power through tariff-based competitive bidding. The Commission held that the proposed long-term procurement was justified by CESC’s future power supply requirements, renewable compliance obligations, and the need to manage peak demand more efficiently.

The Andhra Pradesh Electricity Regulatory Commission approved the procurement of 1,162.8 MW of solar power for feeder-level solarization of agricultural feeders under Component C of the PM-KUSUM program. The approval covers projects proposed by the Andhra Pradesh Southern Power Distribution Company, the Andhra Pradesh Central Power Distribution Company, and the Andhra Pradesh Eastern Power Distribution Company.

The Solar Energy Corporation of India issued a request for selection to set up six standalone battery energy storage systems (BESS) projects in Odisha, with a cumulative capacity of 125 MW/500 MWh. The projects comprise five BESS units of 20 MW/80 MWh each and one unit of 25 MW/100 MWh.

Regional Institute of Medical Sciences invited bids to install 1.4 MW of grid-connected rooftop solar systems on RESCO mode at its buildings in Imphal, Manipur. The last date to submit bids is submitted by January 17, 2026. Bids will be opened on January 19. The scope of work encompasses the design, engineering, procurement, construction, testing, and commissioning of rooftop solar systems, as well as grid connectivity and net-metering approvals with the respective power distribution companies.

POWERGRID Khavda II-B Transmission, a wholly owned subsidiary of Power Grid Corporation of India, commissioned an interstate transmission system to evacuate 4.5 GW of renewable energy from the Khavda polling station in Kutch District, Gujarat, under Phase-II, Part-B.

Chennai-based wind energy solutions company Venwind Refex Power (VRPL), a subsidiary of Refex Industries, received an order to supply 148 MW of wind turbine generators to Jindal Steel and Power Group for wind projects in Tamil Nadu. VRPL will design, procure, manufacture, assemble, and supply the wind turbines. It will also provide related technical and supervisory assistance.

Waaree Energies’ subsidiary, Waaree Solar Americas, will buy 53,68,551 Series B shares of polysilicon manufacturer United Solar Holding for $30 million. The proposed investment, for which the two companies signed a binding term sheet, will help strengthen Waaree’s long-term, secure, and fully traceable polysilicon supply chain to support its expanding U.S. and global manufacturing footprint.

Module manufacturer Alpex Solar’s board of directors approved raising ₹1.25 billion (~$13.8 million) through the issuance of secured, redeemable, unlisted, unrated, and non-convertible debentures (NCDs). Alpex will issue 12,500 NCDs, each with a face value of ₹100,000 (~$1,107.83). The NCDs will carry a coupon rate of 14.75% per annum, payable monthly. The NCDs carry an extra layer of security in the form of subservient charges.

Poland’s Ministry of Climate and Environment signed eight additional agreements with energy clusters, allocating PLN264 million (~$73.42 million) to support local renewable energy and storage projects. The agreements are part of Poland’s National Recovery Plan investment program. The total energy and heat generation capacity of these projects is expected to reach approximately 40 MW, and the storage capacity is projected to exceed 47 MWh.

Bulgaria’s Ministry of Energy approved funding for 31 energy storage system projects totaling 4 GWh, worth BGN 228.9 million (~$137.29 million), under its National Renewable Energy Storage Infrastructure RESTORE 2 program. The country received 93 project proposals, and 30 projects worth BGN 100 million (~$59.9 million) were placed in the reserve list due to funding limitations.

Sri Lanka’s Trincomalee Power Company, a 50:50 joint venture between Ceylon Electricity Board and India’s NTPC, issued an engineering, procurement, and construction tender for a 50 MW (Phase I) ground-mounted solar photovoltaic power project at Sampoor in the Trincomalee region. Bids must be submitted by February 18, 2026. Bids will be opened on February 19.

China filed a complaint with the World Trade Organization (WTO) against India’s solar photovoltaic subsidies, alleging that they provide an unfair competitive advantage to Indian companies and harm Chinese interests. According to a Ministry of Commerce spokesman, China had submitted a request for consultations at the WTO about India’s subsidies for the solar sector.

Germany’s Federal Network Agency (Bundesnetzagentur) set price ceilings of €0.0725 (~$0.085)/kWh for onshore wind and €0.1 (~$0.12)/kWh for rooftop solar project auctions being held in 2026. The price determinations will also apply to the auctions closing on February 1, 2026.

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