Month in a Minute: Top Headlines from the Indian Renewable Sector in October 2025
CERC proposes fulfillment of RCO through payment of the buyout price
November 4, 2025
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The Central Electricity Regulatory Commission (CERC) proposed that designated entities, including electricity distribution licensees, open access consumers, and captive consumers, can fulfill their renewable consumption obligation (RCO) by paying the buyout price specified. The buyout price for FY25 is ₹245 (~$2.79)/MWh.
The Grid Controller of India (Grid-India) has proposed changes to the CERC’s draft procedure for the grant of temporary general network access (T-GNA) to the interstate transmission system. Grid India has proposed to mandate an adequate margin in the transmission system to enable the scheduling of power projects up to their full T-GNA capacity.
Considering the growing instability of the grid due to seasonal jumps in power demand, CERC has suggested a few interim measures for regional load dispatch centers, state load dispatch centers (SLDC), and national load dispatch centers (NLDC). Taking note of the unpreparedness and irregularity in the operation of NLDCs and SLDCs, the Commission urged the states to maintain their own adequate power reserves to meet peak-hour demand.
To make distribution companies more financially viable, the Ministry of Power has proposed an amendment to the Electricity Act, 2003, mandating the electricity regulators to issue cost-reflective power tariffs. The Power Ministry also proposes to amend the Electricity Act to empower state electricity regulatory commissions to file for tariff revisions suo motu.
CERC has notified the Connectivity and General Network Access to the Interstate Transmission System (Third Amendment) Regulations, 2025. The new rules modify several aspects of the Principal Regulations of 2022, introducing expanded definitions, revised procedures for application withdrawals, restructuring of bank guarantee requirements, rules for connectivity to interstate transmission system substations, and detailed compliance obligations for renewable generating stations and energy storage systems.
Importers of solar and wind energy components must register the items with the Renewable Energy Equipment Import Monitoring System before bringing them into the country and declare the intended end-use of the imported products. Under these amendments, solar component importers of toughened (tempered) safety glass and photosensitive semiconductor devices, including photovoltaic cells, whether or not assembled into modules or made into panels, must register these items.
The Ministry of Power has allowed states to implement standalone battery energy storage system (BESS) projects under viability gap funding, supported by the Power System Development Fund, in both two-hour and four-hour configurations. The original guidelines specified that the BESS capacity should preferably have a two-hour discharge duration and average one and a half cycles per 24-hour period.
The Ministry of New and Renewable Energy issued standard operating procedures for the Approved List of Models and Manufacturers Wind (ALMM-Wind) and the Approved List of Models and Manufacturers Wind Turbine Components. For a wind turbine model to qualify for ALMM-Wind, it must possess a valid type certificate issued by an accredited certification body.
The Uttar Pradesh Electricity Regulatory Commission notified the Captive and Renewable Energy Generating Plants Regulations, 2024, setting a comprehensive framework for renewable and captive generation in the state from April 1, 2024, to March 31, 2029. The regulations apply to renewable and captive renewable energy projects, including cogeneration-based systems. As per the regulations, the Commission has limited the number of wheeling and banking agreements to two for the project’s lifetime to ensure the system’s proper management.
Total corporate funding, including venture capital funding, public market, and debt financing, for the solar sector globally, stood at $17.3 billion in the first nine months (9M) of 2025, 22% lower than the $22.3 billion raised in 9M 2024. However, financing picked up in the third quarter (Q3) of 2025, totaling $6.5 billion across 49 deals —a 38% year-over-year increase from $4.7 billion across 29 deals in Q3 2024.
A total of 16.5 GW of utility-scale solar tenders were issued by various agencies in the Q3 of the calendar year 2025, representing a 137.6% increase from 6.9 GW in the previous quarter and a decrease of 17.8 % from 20 GW in the same quarter last year, according to Mercom India research.
The Ministry of New and Renewable Energy amended the operational guidelines for implementing the utility-led aggregation model under the PM Surya Ghar: Muft Bijli Yojana to release central financial assistance (CFA) in a single tranche. The CFA will be released after the physical installation, inspection, and commissioning of the rooftop solar installation.
The Rajasthan Electricity Regulatory Commission notified the third amendment to its Grid-Interactive Distributed Renewable Energy Generating Systems Regulations, opening up virtual and group net metering across consumer categories, codifying charge waivers, and adding battery storage incentives. According to the amendment, under virtual or group net metering, an eligible consumer may install a distributed renewable energy project of more than 1 kW and up to 1 MW.
India added 48.4 MWh of energy storage capacity in the first half (1H) of 2025, a 74% decline from 186 MWh added in the same period last year, according to the newly released India’s Energy Storage Landscape 1H 2025 Report by Mercom India Research. India’s cumulative installed energy storage capacity reached 490 MWh by the end of June 2025.
Electric vehicle (EV) sales in India reached 560,637 units in Q3 for 8% of the overall automobile sales, which totaled 5,796,216 units in Q3, according to data released by the Ministry of Road Transport and Highways through its Vahan Dashboard. India now has over 7.02 million registered EVs.
The Ministry of Heavy Industries has notified operational guidelines for deploying EV public charging stations under the PM Electric Drive Revolution in the Innovative Vehicle Enhancement program. Subsidies will be provided for EV public charging stations and battery swapping stations or battery charging stations.
