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					</table>The Uttarakhand Electricity Regulatory Commission (<a href="https://uerc.uk.gov.in/" target="_blank" rel="noopener">UERC</a>) has proposed reducing the tolerance to ±5% for solar and hybrid projects and to ±10% for wind projects, aligning with the Central Electricity Regulatory Commission’s (CERC) <a href="https://www.mercomindia.com/cerc-notifies-phased-move-to-schedule-based-deviation-for-wind-solar-under-dsm" target="_blank" rel="noopener">revised</a> deviations settlement tolerance bands.
Under the draft UERC (Deviation Settlement Mechanism and Related Matters) Regulations, 2026, the regulator aims to enforce grid discipline and security through a commercial mechanism for settling differences between scheduled and actual electricity injection or drawal.
The regulations will apply to all state grid-connected entities and other entities engaged in the intrastate purchase and sale of electricity. Generating stations, including renewable energy projects, that are directly connected to the interstate transmission network and supply power outside Uttarakhand will be governed by CERC’s DSM Regulations, 2024.
Computation of Deviation
Deviation in a time block for General Sellers will be computed as follows:
Deviation-General Seller (D-GS) (in MWh) = [(Actual injection in MWh) –
(Scheduled generation in MWh)].
Deviation-General Seller (D-GS) (in %) = 100 x [(Actual injection in MWh) –
(Scheduled generation in MWh)] / [(Scheduled generation in MWh)].
(2) Deviation in a time block for buyers will be computed as follows:
Deviation-Buyer (D-BUY) (in MWh) = [(Actual drawal in MWh) – (Scheduled
drawal in MWh)].
Deviation-Buyer (D-BUY) (in %) = 100 x [(Actual drawal in MWh) – (Scheduled
drawal in MWh)] / [(Scheduled drawal in MWh)].
Normal Rate of Charges for Deviations
The normal rate of charges for deviation for a time block will be equal to the
normal rate of charges for deviation, as considered by Northern Regional Power
Committee (NRPC) for the billing purposes for that time block in line with the
provisions of the CERC (Deviation Settlement Mechanism and Related Matters)
Regulations, 2024.
Solar and Hybrid Projects
For solar and wind-solar hybrid projects, over-injection of up to 5% will be compensated at the applicable contract rate. For over-injection beyond 5% and up to 10%, generators will receive 90% of the contract rate.
However, generators will receive no payment for over-injection beyond 10%.
Solar and wind-solar hybrid generators will have to pay deviation charges at the contract rate for under-injection of up to 5%. Under-injection beyond 5% and up to 10% will attract charges equivalent to 110% of the contract rate.
For under-injection beyond 10%, generators will have to pay deviation charges equivalent to 200% of the contract rate.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm5.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-103494 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm5.png" alt="" width="942" height="529" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm5.png 942w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm5-300x168.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm5-768x431.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm5-650x365.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm5-844x475.png 844w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm5-624x350.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm5-600x337.png 600w" sizes="auto, (max-width: 942px) 100vw, 942px" /></a>
Wind Projects
Wind generators will receive the contract rate for over-injection of up to 10% and 90% of the contract rate for deviation beyond 10% and up to 15%. They will receive no payment for over-injection beyond 15%.
For under-injection, wind generators will pay the contract rate for deviations of up to 10% and 110% of the contract rate for deviations beyond 10% and up to 15%.
Under-injection exceeding 15% will attract charges equivalent to 200% of the contract rate.
Energy Storage
The Commission has also proposed deviation settlement provisions for energy storage systems (ESS).
For renewable energy projects with an ESS connected at the same interconnection point, the applicable solar, wind, or hybrid deviation mechanism will apply when the renewable project is injecting electricity.
When only the ESS injects electricity, the deviation mechanism applicable to standalone storage systems will apply. The standalone ESS provisions will also apply when the system draws electricity from the grid for charging.
Each generator and ESS must have a Special Energy Meter to record actual injection and drawal separately.
Charges for Deviation, in respect of a general seller D-GS (other than an RoR generating station and a generating station based on municipal solid waste)
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-103496 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm1.png" alt="" width="971" height="727" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm1.png 971w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm1-300x225.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm1-768x575.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm1-650x487.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm1-624x467.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm1-600x449.png 600w" sizes="auto, (max-width: 971px) 100vw, 971px" /></a>
Charges for deviation, in respect of a general seller being an RoR generating station without any linkage to grid frequency
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-103497 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm2.png" alt="" width="1119" height="358" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm2.png 1119w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm2-300x96.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm2-768x246.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm2-650x208.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm2-624x200.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm2-600x192.png 600w" sizes="auto, (max-width: 1119px) 100vw, 1119px" /></a>
Charges for deviation, in respect of a general seller being a generating station based on municipal solid waste without any linkage to grid frequency
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm3.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-103495 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm3.png" alt="" width="953" height="242" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm3.png 953w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm3-300x76.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm3-768x195.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm3-650x165.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm3-624x158.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm3-600x152.png 600w" sizes="auto, (max-width: 953px) 100vw, 953px" /></a>
Charges for deviation, in respect of a Buyer D-BUY
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm6.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-103493 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm6.png" alt="" width="942" height="830" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm6.png 942w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm6-300x264.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm6-768x677.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm6-650x573.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm6-624x550.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/dsm6-600x529.png 600w" sizes="auto, (max-width: 942px) 100vw, 942px" /></a>
Role of QCA
The draft regulations provide a framework for Qualified Coordinating Agencies (QCA) to manage forecasting, scheduling, and deviation settlement for renewable energy generators.
Wind and solar generators with more than one legal owner connected directly or through a pooling station to the state grid must appoint a common QCA with the generators&#8217; consent. A lead generator can also act as the QCA.
The QCA will coordinate generation schedules and periodic revisions on behalf of renewable energy generators and handle metering, data collection, communication, and commercial settlement of generation-related deviation charges.
It will also de-pool payments received on behalf of generators and settle them with individual projects.
For renewable generators aggregated at a pooling station through a QCA, the contract rate used to calculate deviation charges will be the weighted average of the contract rates of the individual generators opting for aggregation.
Infirm Power
The Commission has proposed a ₹1.78 (~$0.019)/kWh rate for infirm electricity injected during testing before the commercial operation date by solar, wind, hydro, and municipal solid waste projects where a power purchase agreement, another agreement, or applicable regulations do not already cover its treatment.
The rate will be applicable for six months.
Settlement of Deviation Charges
The SLDC will prepare State Energy Accounts monthly in accordance with the State Grid Code and will also issue weekly statements detailing the deviation charges payable and receivable by each state entity.
Entities must pay deviation charges within seven days of the SLDC issuing the statement. Payments delayed beyond nine days from the statement date will attract simple interest of 0.04% for each day of delay.
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