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					</table><p>The Kerala State Electricity Regulatory Commission (<a href="https://erckerala.org/" target="_blank" rel="noopener">KSERC</a>) has issued the draft Kerala State Electricity Regulatory Commission (Multi Year Tariff) Regulations, 2026, proposing a framework for energy storage systems, including battery energy storage, for the control period from financial year (FY) 2028 to FY 2032.</p>
<p>The draft regulations also contain norms for distributed energy resources, rooftop solar integration, time-of-day (ToD) tariffs, green tariffs, renewable power procurement, and grid modernization.</p>
<p>Stakeholders must submit comments or suggestions by September 25, 2026.</p>
<h2><strong>MYT Framework </strong></h2>
<p>The multi-year tariff (MYT) framework covers tariff determination for electricity generation, energy storage systems, transmission, distribution, and the state load despatch center (SLDC). It provides for determining aggregate revenue requirement (ARR) and expected tariff and charge revenue for each year, annual truing up of expenses and revenue, and a mid-term performance review in FY 2029-30.</p>
<p>Generating companies, energy storage system developers (ESSDs), transmission and distribution companies (DISCOMs), and the SLDC must file petitions for ARR approval and tariff determination for each year of the control period by November 30, 2026. The filings must include annual capital investment plans. DISCOMs must also submit proposals for meeting renewable purchase obligations.</p>
<p>The regulations propose liquidating DISCOM regulatory assets or surpluses by March 31, 2031. Regulatory assets existing as of March 31, 2024, including carrying costs, will be liquidated in four equal installments from FY 2027-28 to FY 2030-31 through a Commission-determined regulatory asset surcharge.</p>
<h2><strong>Tariff Determination</strong></h2>
<p>For existing generating stations with approved power purchase agreements (PPAs), tariffs will continue according to the agreements. Modifications or extensions of existing PPAs from April 1, 2027, will require the Commission’s approval. New generating stations and power sources must also obtain PPA approval before supplying electricity to DISCOMs.</p>
<p>Retail supply tariffs will remain uniform across Kerala for consumers in the same tariff category. DISCOMs must submit proposals covering category-wise sales, tariff revisions, cross-subsidies, demand-based billing, ToD tariffs, wheeling charges, and tariff recategorization.</p>
<p>The draft proposes lower tariffs or rebates during solar generation or other low-demand hours and higher tariffs during peak periods. DISCOMs may propose tariffs for peak-hour support from consumer-owned energy storage systems. The regulations also provide for demand response programs and a green tariff option for consumers procuring 100% renewable energy at a premium.</p>
<h2><strong>Financial Principles</strong></h2>
<p>KSERC will assess revenue, revenue expenditure, and capital expenditure while determining ARR and tariffs and may disallow expenditure when an entity does not demonstrate adequate financial prudence.</p>
<p>For new generating stations, transmission and distribution assets, and capacity expansions commissioned from April 1, 2027, the debt-equity ratio for tariff determination will be 70:30. Equity considered for tariff purposes will be capped at 30% of approved capital cost.</p>
<p>The proposed annual return on equity is 14% for distribution and transmission licensees, generating companies, ESSDs, and the SLDC. Where equity is absent or cannot be identified, a 4% return will be allowed on net fixed assets.</p>
<h2><strong>Distribution</strong></h2>
<p>DISCOMs must prepare annual capital investment plans covering load growth, loss reduction, supply reliability, metering, consumer services, and grid modernization supporting distributed energy resource integration. They must ensure 24&#215;7 electricity supply and prepare five-year power procurement plans that can include long-, medium-, and short-term procurement and energy storage systems.</p>
<p>The Commission will set annual distribution loss reduction targets. Power purchase costs corresponding to losses above approved levels will be disallowed. Savings from outperforming the target will be shared between DISCOMs and consumers in a 2:1 ratio.</p>
<h2><strong>Transmission and SLDC</strong></h2>
<p>Transmission licensees must submit capital investment plans for power evacuation, load growth, loss reduction, reliability, metering, and congestion reduction. New intrastate transmission projects above the prescribed threshold must use tariff-based competitive bidding. Specified strategic projects may use a cost-plus basis with state government approval.</p>
<p>The regulations set a 99% transmission availability target for full recovery of annual revenue requirements. Availability of at least 99.5% will qualify for an incentive of 0.5% of annual transmission charges, while availability from 99% to below 99.5% will qualify for a 0.25% incentive. Reactive energy charges are proposed at ₹0.25/kVArh.</p>
<p>KSERC proposes a separate ARR for the SLDC covering O&amp;M expenses, working capital interest, depreciation, finance costs, and return on equity, after deducting SLDC fees, charges, and non-tariff income. The Commission may permit an SLDC Development Fund for system automation, technology upgrades, information technology implementation, and strengthening and ring-fencing the SLDC.</p>
<h2><strong>Generation Tariffs</strong></h2>
<p>According to the draft regulations, tariffs for cogeneration, solar, wind, small hydro projects up to 25 MW, and other renewable energy sources will continue under the KSERC (Renewable Energy and Related Matters) Regulations, 2025.</p>
<p>Generating companies must file tariff petitions for new projects 180 days before the anticipated commercial operation date (COD) and final tariff petitions within 180 days of COD. Capital cost variations of 5% or more from approved levels will result in corresponding tariff adjustments with interest.</p>
<h2><strong>Energy Storage</strong></h2>
<p>KSERC proposes a tariff framework for energy storage systems, including battery energy storage and pumped storage projects (PSPs). It will apply to storage developed by distribution licensees, ESSDs, and storage integrated with generating stations or transmission systems. The regulations also allow community or collective storage systems, with participating consumers and ESSDs sharing capacity, charging and discharging schedules, costs, and benefits.</p>
<p>Upcoming energy storage projects covered by the regulations must use grid-forming inverters capable of supporting weak grids with a short-circuit ratio of 2 or lower and providing near-instantaneous frequency and voltage support.</p>
<p>Normative round-trip efficiency is 85% for battery energy storage and 75% for PSPs, with annual availability norms of 95% and 90%, respectively. Battery energy storage has a normative depth of discharge of 90%, annual degradation of 1%, and a ramp rate of 75% of rated capacity per minute.</p>
<p>O&amp;M expenses will be allowed at 1% of capital expenditure for battery energy storage and 2% for PSPs. An incentive of ₹0.20 (~$0.0021)/kWh will be payable for energy delivered above normative cycle efficiency. The regulations also propose incentives for energy storage projects commissioned ahead of schedule, linked to power purchase savings or approved.</p>
<p>This July, KSERC<a href="https://www.mercomindia.com/kerala-regulator-approves-ksebs-200-mw-solar-plus-400-mwh-storage-procurement" target="_blank" rel="noopener"> approved</a> the power sale agreement signed between KSEB and the Solar Energy Corporation of India) for procuring 200 MW of solar power coupled with a 100 MW/400 MWh battery energy storage system.</p>
<p>In June, KSERC <a href="https://www.mercomindia.com/kerala-electricity-regulator-approves-500-mwh-battery-storage-project" target="_blank" rel="noopener">approved</a> KSEBL&#8217;s proposal to implement a 250 MW/500 MWh grid-connected battery energy storage system at the 220 kV substation premises at Brahmapuram, using Viability Gap Funding.</p>


Kerala Drafts Tariff Framework for Energy Storage, Generation and Transmission


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					</table><p>The Maharashtra Electricity Regulatory Commission (<a href="https://merc.gov.in/" target="_blank" rel="noopener">MERC</a>) has modified aspects of its multi-year tariff (MYT) order, revising time-of-day (ToD) banking rules and rationalizing the rebate structure to better align with regulatory principles and solar consumption patterns.</p>
<p>The Commission has clarified that banked energy can be drawn only within the same or lower tariff time block, and introduced a slot-wise framework under which energy banked during normal hours (00:00–06:00 and 06:00–09:00) can be used during normal and solar hours but not peak hours, solar-hour banking (09:00–17:00) is restricted to the same time block, and peak-hour banking (17:00–24:00) can be utilized across all time periods.</p>
<p>Under the revised ToD framework, there is no rebate or additional charge during normal hours from 00:00 to 06:00 and 06:00 to 09:00. During solar hours (09:00 to 17:00), a rebate of 15% applies from April to September and 25% from October to March, while peak-hour consumption (17:00 to 24:00) will attract a 20% premium.</p>
<p>For low tension residential consumers and high tension group housing societies, the Commission has specified a solar-hour rebate trajectory of ₹0.80 (~$0.0085)/kWh in financial year (FY) 2025-26, ₹0.85 (~$0.0090)/kWh in FY 2026-27, ₹0.90 (~$0.0096)/kWh in FY 2027-28 and FY 2028-29, and ₹1.00 (~$0.0106)/kWh in FY 2029-30.</p>
<p>The Commission has also removed the earlier ₹0.80 (~$0.0085)/kWh night-time rebate, aligning incentives more closely with daytime renewable energy availability.</p>
<p>These principles apply to net metering and net billing arrangements. Residential consumers are exempt from ToD-wise banking for rooftop renewable energy.</p>
<p>The revised tariff and banking provisions will apply from July 1, 2025, while the remaining elements of the MYT order will remain unchanged.</p>
<p><strong>Background </strong></p>
<p>The proceedings arise from a review petition filed by MSEDCL challenging multiple aspects of the MYT tariff order for the fourth and fifth control periods.</p>
<p>The Commission had initially issued its MYT order, followed by a review order on June 25, 2025. The Bombay High Court subsequently set aside the review order and <a href="https://www.mercomindia.com/bombay-high-court-sets-aside-merc-order" target="_blank" rel="noopener">remanded</a> the matter to the Commission with directions to conduct a fresh process with stakeholder consultation. The Supreme Court upheld the remand and directed the Commission to decide the matter within a specified timeline, which was later extended.</p>
<p>Pursuant to these directions, the Commission conducted public consultations and hearings across Maharashtra and received approximately 2,000 suggestions and objections from stakeholders.</p>
<p>MSEDCL raised multiple issues in its petition. It argued that capital expenditure associated with programs already approved or submitted had been erroneously excluded, resulting in an underestimation of allowable costs. It also raised concerns regarding depreciation calculations, including the treatment of assets funded through consumer contributions and grants.</p>
<p>The utility sought additional return on equity for its wires business, contending that the Commission had incorrectly linked such incentives to factors outside the prescribed regulatory framework. It also challenged the methodology used to estimate agricultural consumption and technical losses, stating that reliance on limited sample data had distorted energy balance and cross-subsidy calculations.</p>
<p>MSEDCL also sought recognition of approximately ₹117.51 billion (~$1.24 billion) in liabilities arising from subsequent judicial and regulatory orders. It, however, held that these claims were not admissible in the present proceedings as they arose after the MYT order and the filing of the review petition, and granted liberty to MSEDCL to approach the Commission separately for their recovery.</p>
<p>Stakeholders raised a wide range of concerns. Industrial consumers opposed any revision in agricultural sales that could increase their tariff burden. Consumer groups raised concerns about kVAh-based billing and its impact on fairness and energy efficiency. Renewable energy stakeholders raised objections to banking provisions, time-of-day restrictions, and grid-related charges.</p>
<p><strong>Commission’s Analysis </strong></p>
<p>The Commission examined the petition under Regulation 28 governing its review jurisdiction, while also noting that it possesses inherent powers to amend the tariff after following due process.</p>
<p>It observed that the present proceedings were conducted in compliance with judicial directions, including full public consultation, and that the issues raised by MSEDCL could therefore be evaluated on merits within this framework.</p>
<p>On capital expenditure, the Commission accepted MSEDCL’s contention that certain programs had been wrongly excluded in the MYT order. It approved capitalisation for previously disallowed programs, including those already granted in principle approval. It addressed additional capex components, including grant-funded and projected programs, in its revised determination.</p>
<p>On the issue of depreciation, the Commission examined the issues raised by MSEDCL regarding the calculation methodology and the treatment of assets funded through grants and contributions. The order reflects issue-specific determinations rather than a blanket acceptance or rejection of all depreciation claims.</p>
<p>The Commission also addressed the estimation of agricultural sales as a substantive issue. It considered stakeholder objections and MSEDCL’s submissions regarding loss assumptions, feeder level data, and methodology. It adjudicated the issue in the latter part of the order rather than treating it as outside the scope of review.</p>
<p>Regarding return-on-equity, the Commission did not allow additional return-on-equity for the wires business, noting that its earlier approach was consistent with tariff principles and that related matters are subject to appellate proceedings. However, the treatment of other financial components was adjusted where justified.</p>
<p>A key aspect of the order relates to the banking of renewable energy. The Commission held that its earlier MYT order was not consistent with the Distribution Open Access Regulations and therefore required correction. It reaffirmed that banking must follow the regulatory principle that energy can be drawn only within the same or lower tariff time block. It then aligned this principle with the revised ToD structure.</p>
<p>The state regulator also clarified that these principles apply to net metering and net billing arrangements. Residential consumers are exempt from time-of-day slot-wise banking for rooftop renewable energy.</p>
<p>It also examined other issues raised by stakeholders, including kVAh billing and time-of-day tariffs. It noted that kVAh-based billing had been introduced through earlier tariff orders as part of a phased regulatory approach and does not constitute an apparent error warranting review.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>


Maharashtra Revises Energy Banking Rules in Modified Multi-Year Tariff Order


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					</table><p>The Supreme Court of India <a href="https://www.mercomindia.com/supreme-court-orders-merc-to-clear-pleas-on-multi-year-tariff-order-in-12-weeks" target="_blank" rel="noopener">directed</a> the Maharashtra Electricity Regulatory Commission (MERC) to review the petitions challenging the impugned multi-year tariff (MYT) within 12 weeks. In a November 17, 2025, ruling remanding the matter to the MERC, the apex court said all stakeholders must be heard before the electricity regulator takes a decision. It also said the directions issued by the Bombay High Court in the matter will continue to operate. Recently, the Bombay High Court quashed the impugned MYT order limiting power banking facilities in the state and said that the earlier MYT order, passed by MERC on March 28, 2025, will continue to be in force.</p>
<p>A new staff paper by the Central Electricity Regulatory Commission (CERC) <a href="https://www.mercomindia.com/cerc-favors-grid-connectivity-only-to-renewable-energy-projects-with-ppas" target="_blank" rel="noopener">suggested</a> that grid connectivity for renewable energy projects be given only if they have signed power purchase agreements. As another option, it has been recommended that an auction regime be introduced for all connectivity allocations. These suggestions have been made in the context of 31.8 GW of renewable energy projects that have secured tentative grid connectivity in the absence of power purchase agreements (PPAs) as of June 2025. When pending applications are included, this number climbs to nearly 45.3 GW, representing a very large block of connectivity that has not yet translated into firm offtake in India’s transition pipeline.</p>
<p>The CERC <a href="https://www.mercomindia.com/cerc-approves-tariffs-for-secis-420-mw-of-renewable-energy-projects-with-ess" target="_blank" rel="noopener">approved</a> tariffs of ₹5.06 (~$0.0567)/kWh and ₹5.07 (~$0.0568)/kWh for 420 MW of Solar Energy Corporation of India’s (SECI) 1,200 MW renewable energy projects with an energy storage system. The Commission also approved a trading margin of ₹0.07 (~$0.0008)/kWh, subject to a cap of ₹0.02 (~$0.0002)/kWh if SECI did not provide escrow or line-of-credit payment security.</p>
<p>Lineage Power, a material subsidiary of Pace Digitek, <a href="https://www.mercomindia.com/pace-digitek-subsidiary-wins-order-for-276-mwh-of-bess-from-lt" target="_blank" rel="noopener">received</a> an order worth ₹1.9 billion (~$22.33 million) from Larsen &amp; Toubro to supply 275,825 kWh of battery energy storage systems (BESS) in 55 integrated LiFePo4 liquid cooling containers for the Bihar State Power Generation Company in Kajra, Lakhisarai district. This order is part of the 116 MW solar project integrated with a 241 MWh BESS that Larsen &amp; Toubro won from BSPGCL in August this year. Lineage Power will execute the order by March 2026.</p>
<p>Ahmedabad-based integrated power transmission equipment manufacturer, Diamond Power Infrastructure, <a href="https://www.mercomindia.com/diamond-power-bags-%E2%82%B92-76-billion-transmission-conductor-order-from-adani" target="_blank" rel="noopener">received</a> a letter of intent to supply transmission conductors worth ₹2.76 billion (~$30.96 million) from Adani Energy Solutions for the Khavda renewable energy project. The order involves the supply of 7,668 km of AL-59 zebra conductors. The cables must be supplied by November 23, 2026. In addition to conductors, Diamond Power also manufactures cables for the power sector.</p>
<p>Southern Railway <a href="https://www.mercomindia.com/southern-railway-invites-bids-for-1-mw-rooftop-solar-projects-at-rameswaram" target="_blank" rel="noopener">invited</a> bids for installing rooftop solar systems with a cumulative capacity of 1 MW at various locations of Rameswaram station under the Madurai Division, Tamil Nadu. The rooftop solar systems will have a minimum capacity of 10 kW. The tender has specified an expected aggregate generation of 28.13 million kWh over the project billing period. The scope of work includes the designing, building, financing, and operation of the project through the renewable energy service company model. Successful bidders will be responsible for conducting detailed site surveys, supplying modules and associated electrical components, mounting structures, evacuation systems, metering arrangements, remote monitoring, and safety systems.</p>
<p>Power Grid Corporation of India (POWERGRID) <a href="https://www.mercomindia.com/powergrid-invites-bids-to-select-partner-for-aptranscos-2-gwh-bess-tender" target="_blank" rel="noopener">invited</a> bids to select a consortium partner to set up 1,000 MW/2,000 MWh of standalone BESS across seven substations in Andhra Pradesh. Bids must be submitted by November 27, 2025. Bids will be opened on the same day. This tender is a pre-bid tie-up up and its award is contingent on POWERGRID winning the upstream tender floated by Andhra Pradesh Power Transmission Corporation (APTRANSCO). The scope of work involves setting up the BESS, including the battery system, power conversion system, and transformers, and interconnection with the 33 kV bus developed by APTRANSCO.</p>
<p>Kolkata-based solar module manufacturer Vikram Solar <a href="https://www.mercomindia.com/vikram-solar-commissions-5-gw-solar-manufacturing-plant-in-tamil-nadu" target="_blank" rel="noopener">commissioned</a> a 5 GW solar module manufacturing facility in Vallam, Tamil Nadu, increasing its total production capacity to 9.5 GW. The facility covers 27,000 square meters and has been designed as a fully automated facility to ensure productivity, consistency in quality, and supply reliability. The facility utilizes advanced TOPCon technology and is designed to support an upgrade to heterojunction technology. It can produce modules across M10, G12, and G12R formats.</p>
<p>Australia-based clean energy solutions company Hydro Tasmania <a href="https://www.mercomindia.com/hydro-tasmania-invites-proposals-for-1500-gwh-of-wind-solar-power" target="_blank" rel="noopener">invited</a> expressions of interest for new wind and solar developments across Tasmania to deliver up to 1,500 GWh of electricity annually, aiming to increase the state’s renewable energy supply to the electricity grid. Proposals must be submitted by December 5, 2025. The selected projects must be operational within the next five to six years, aligning with forecasted increases in demand. Hydro Tasmania has demonstrated support for large-scale solar investment. In 2024, the utility agreed to purchase electricity generated from a proposed 288 MW solar project in the Northern Midlands.</p>


Daily Wrap-Up: Supreme Court Tells MERC to Clear Pleas on Maharashtra MYT Order


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					</table><p>The <a href="https://www.sci.gov.in/" target="_blank" rel="noopener">Supreme Court of India</a> has directed the Maharashtra Electricity Regulatory Commission (MERC) to review the petitions challenging the impugned multi-year tariff (MYT) within 12 weeks.</p>
<p>In a November 17, 2025, ruling remanding the matter to the MERC, the apex court said all stakeholders must be heard before the electricity regulator takes a decision.</p>
<p>It also said the directions issued by the Bombay High Court in the matter will continue to operate.</p>
<p>Recently, the Bombay High Court <a href="https://www.mercomindia.com/bombay-high-court-sets-aside-merc-order" target="_blank" rel="noopener">quashed</a> the impugned MYT order limiting power banking facilities in the state and said that the earlier MYT order, passed by MERC on March 28, 2025, will continue to be in force.</p>
<p>The ruling came in the background of multiple writ petitions filed by stakeholders in the renewable energy sector, challenging the MYT order passed without public consultation.</p>
<p>On March 28, 2025, MERC passed the MYT order, and MSEDCL filed an interlocutory application requesting a stay of its enforcement in the interest of protecting consumers and stakeholders.</p>
<p>Following the MSEDCL petition, MERC issued a stay on the MYT order without holding any public consultation.</p>
<p>On June 25, 2025, MSEDCL filed a review petition seeking amendments to the MYT order, and the Commission approved it, again without considering stakeholder opinions.</p>
<p>The impugned June order altered several key aspects of the MYT order, including renewable energy banking and approvals for distribution companies&#8217; capital expenditure/annual aggregate review requirements.</p>
<p>Based on a writ petition filed by the National Solar Energy Federation of India, the Bombay High Court <a href="https://www.mercomindia.com/bombay-high-court-stays-msedcls-restrictions-on-banked-renewable-energy" target="_blank" rel="noopener">stayed</a> MSEDCL’s limitations on the use of banked solar power within solar hours in September.</p>
<p>Solar project developers said that the energy banking restrictions could adversely <a href="https://www.mercomindia.com/maharashtras-energy-banking-rules-could-limit-solar-capacity-additions" target="_blank" rel="noopener">impact</a> solar capacity additions in Maharashtra and result in a 10% reduction in consumer savings.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry</p>


Supreme Court Orders MERC to Clear Pleas on Multi-Year Tariff Order in 12 Weeks


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					</table><p>The recent Central Electricity Regulatory Commission’s (CERC) proposal to <a href="https://www.mercomindia.com/deviation-settlement-higher-tariffs" target="_blank" rel="noopener">tighten</a> deviation limits for the scheduling and dispatch of power has raised concerns about higher project costs for renewable developers and potential increases in consumer tariffs. As part of its broader effort to reduce grid instability, CERC has proposed narrowing the tolerance band for the deviation settlement mechanism (DSM) for wind and solar projects starting in 2026. The tighter DSM limits could result in higher deviation charges for renewable projects or force developers to invest more in advanced forecasting and weather-monitoring systems to minimize penalties.</p>
<p>Quashing the impugned multi-year tariff (MYT) review order <a href="https://www.mercomindia.com/bombay-high-court-sets-aside-merc-order" target="_blank" rel="noopener">passed</a> by the Maharashtra Electricity Regulatory Commission (MERC), the Bombay High Court said that the MYT order, passed by MERC on March 28, 2025, will continue to be in force. The ruling comes in the backdrop of several writ petitions filed by stakeholders in the renewable energy industry challenging the MYT review order dated June 25, 2025, passed by MERC without public consultation. The petitions, filed by leading renewable energy developers and industrial associations, challenged MERC’s ex parte review decision, which altered several key aspects of the MYT Order, including renewable energy banking, hotel tariff categorization, and approvals for capital expenditure/annual aggregate review requirements by distribution companies.</p>
<p>The Tripura Electricity Regulatory Commission (TERC) <a href="https://www.mercomindia.com/tripura-regulator-amends-rooftop-solar-rules" target="_blank" rel="noopener">capped</a> the net energy credits at a maximum of 3.8 units per kW per day for solar systems installed by domestic, irrigation, and water works consumers. The Commission has released the (First Amendment) to the Draft TERC (The Grid Interactive Solar Rooftop Photovoltaic System under Gross/Net Metering) Regulation, 2024. The regulations will be effective from the date of publication in the Tripura Gazette. The TERC has revised the capacities permitted for gross or net metering.</p>
<p>The South Eastern Railway <a href="https://www.mercomindia.com/south-eastern-railways-floats-tender-for-1-37-mw-rooftop-solar-projects" target="_blank" rel="noopener">invited</a> bids for 1.37 MW grid-connected rooftop solar power systems under the Santragachi Division jurisdiction in Howrah, West Bengal. The project comes under the second phase of the division’s solar initiative and covers installations across residential buildings, service buildings, railway stations, and level crossing gates within Santragachi limits. Bids must be submitted by November 21, 2025. Bids will be opened on the same day. The scope of work includes the design, supply, erection, testing, and commissioning of rooftop on-grid solar systems with capacities ranging from 1 kW to 50 kW across multiple sites.</p>
<p>Textile manufacturing company and the flagship company of the LNJ Bhilwara Group, RSWM, <a href="https://www.mercomindia.com/textile-firm-rswm-to-procure-60-mw-of-renewable-power-from-adani-energy" target="_blank" rel="noopener">signed</a> an agreement with Adani Energy Solutions (AESL) to supply 60 MW of renewable energy to its multiple facilities in Rajasthan. The agreement marks a step in RSWM’s sustainability roadmap, aiming to increase its share of renewable energy from the current 33% to 70% of its total energy consumption. Under the agreement, AESL will manage the complete green power value chain to meet RSWM’s additional power requirements. To facilitate this, RSWM has invested ₹600 million (~$6.77 million) in the renewable generation company.</p>
<p>Waaree Forever Energies, a wholly owned subsidiary of Waaree Energies, <a href="https://www.mercomindia.com/waaree-to-acquire-100-stake-in-sunbreeze-ninth-cloud" target="_blank" rel="noopener">executed</a> a share purchase agreement to acquire a 100% stake in renewable solutions provider, Sunbreeze Ninth Cloud. The acquisition is subject to the fulfillment of certain conditions precedent and is expected to be completed by November 30, 2025, or on a later date mutually agreed upon by the parties. According to Mercom sources, the acquisition is of a solar project with a capacity of nearly 50 MW in Maharashtra. Waaree has been acquiring multiple companies in the power sector.</p>
<p>The Government-owned transmission utility, Power Grid Corporation of India’s board <a href="https://www.mercomindia.com/powergrid-%E2%82%B960-billion-loan-sbi" target="_blank" rel="noopener">approved</a> raising funds of up to ₹60 billion (~$676.05 million) through an unsecured rupee term loan or a line of credit from the State Bank of India (SBI). As of October 31, 2025, the company operates 1,81,054 circuit kilometers of transmission lines and manages 287 substations across its network with 1,500 transmission lines, 5,71,000 MVA, transformation capacity, and system availability of 99.84%. The company currently has projects worth approximately ₹1,480 billion (~$16.7 billion) under execution and development.</p>
<p>Dharan Infra Solar, a wholly owned subsidiary of engineering, procurement, and construction company Dharan Infra-EPC, <a href="https://www.mercomindia.com/dharan-infra-bags-supply-contract-for-75-mw-solar-projects-in-maharashtra" target="_blank" rel="noopener">executed</a> a supply agreement with Skymax Infrapower, an infrastructure company, for 75 MW of solar projects spread across nine sites in Nanded, Maharashtra. Dharan will design, supply, and install project equipment and structures for the solar project. It will also conduct the related work for setting up and operating the project. The contract is valued at ₹2.15 billion (~$24.24 million).</p>
<p>Solar cell and module manufacturer Websol Energy System <a href="https://www.mercomindia.com/websols-revenue-up-yoy-q2-fy26" target="_blank" rel="noopener">reported</a> a 17% increase in revenue to ₹1.68 billion (~$18.9 million) in the second quarter of the financial year 2026, from ₹1.44 billion (~$16 million) in the same quarter of the previous year. Despite the revenue growth, the company stated that the increase was offset by the temporary shutdown of its existing cell and module line for eight days. The facility was shut down for electrical integration at its recently commissioned 600 MW cell line. Websol noted its revenue growth was also impacted by the slowdown of logistics during the festive season in West Bengal.</p>
<p>Wind turbine manufacturer Suzlon Energy <a href="https://www.mercomindia.com/suzlon-posts-538-yoy-profit" target="_blank" rel="noopener">recorded</a> a 538% year-over-year increase in profit after tax of ₹12.79 billion (~$144 million) in the second quarter (Q2) of the financial year (FY) 2026, increasing from ₹2.01 billion (~$22.6 million). The company has attributed the rise in profit to an increase in sales of wind turbine generators. It reported a 115% jump in sales of wind turbine generators valued at 32.41 billion (~$365 million) in Q2 FY26 from ₹15.07 billion (~$169.7 million) in the same quarter of the previous year. Suzlon’s revenue during the quarter stood at ₹38.66 billion (~$435.5 million), an 85% jump from₹20.93 billion (~$235.7 million) in Q2 FY25.</p>
<p>Researchers at the University of New South Wales, Sydney, claim they have <a href="https://www.mercomindia.com/singlet-fission-can-enhance-silicon-solar-cell-efficiency" target="_blank" rel="noopener">increased</a> the efficiency of solar technology by utilizing the concept of singlet fission, increasing the theoretical efficiency limit of silicon cells to approximately 45%. Singlet fission refers to a process where a single light particle, a photon, is split into two packets of energy, doubling the output of solar energy technologies. The research team, known as Omega Silicon, published their findings in ACS Publications. The findings demonstrate how singlet fission works on an organic material called Dipyrrolonaphthyridinedione, which could be mass-produced in the future for use in solar panels.</p>


Daily News Wrap-Up: Deviation Limits May Raise Renewable Tariffs


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					</table><p>Quashing the impugned multi-year tariff (MYT) review order passed by the Maharashtra Electricity Regulatory Commission (<a href="https://merc.gov.in/" target="_blank" rel="noopener">MERC</a>), the <a href="https://bombayhighcourt.nic.in/" target="_blank" rel="noopener">Bombay High Court</a> said that the MYT order, passed by MERC on March 28, 2025, will continue to be in force.</p>
<p>The ruling comes in the backdrop of several writ petitions filed by stakeholders in the renewable energy industry challenging the MYT review order dated June 25, 2025, passed by MERC without public consultation.</p>
<p>The petitions, filed by leading renewable energy developers and industrial associations, challenged MERC’s ex parte review decision, which altered several key aspects of the MYT Order, including renewable energy banking, hotel tariff categorization, and approvals for capital expenditure/annual aggregate review requirements by distribution companies. The Court found that these changes had “far-reaching consequences” for consumers and industry participants who should have been consulted before being passed.</p>
<p>The court ruled that the order was quashed for failing to comply with public consultation mandates as per Regulation 14 of the MYT Regulation, 2024, which pertains to the determination of tariffs, fees, and charges for transmission, distribution, and retail power supply businesses.</p>
<p>The judgment emphasized that, under Regulations 28(f) and 40(b) of the Transactions of Business Regulations, affected parties must be given notice and an opportunity to be heard before any review or amendment of a tariff order.</p>
<p>The High Court has directed MERC to rehear MSEDCL’s review petition only after issuing public notice and allowing all stakeholders to participate in the proceedings. Until MERC concludes the review afresh, the original MYT Order of March 28, 2025, will remain in force. Once the due process is followed, the aggrieved petitioner can also appeal to the APTEL.</p>
<p>The Court has stayed the operation of the Order for four weeks to enable MERC and MSEDCL to appeal before the Supreme Court of India.</p>
<p><strong>Background</strong></p>
<p>After MERC passed the MYT order on March 28, 2025, MSEDCL filed an interlocutory application requesting a stay of its implementation and enforcement, stating that it was in the interest of protecting consumers and stakeholders.</p>
<p>Following the interlocutory application filed by MSEDCL, MERC issued a stay on the MYT order without holding any public consultation.</p>
<p>Furthermore, MSEDCL filed a review petition on June 25, 2025, seeking amendments to the MYT order, and the Commission passed it without considering the opinions of stakeholders.</p>
<p>In September 2025, the Bombay High Court <a href="https://www.mercomindia.com/bombay-high-court-stays-msedcls-restrictions-on-banked-renewable-energy" target="_blank" rel="noopener">stayed</a> the MSEDCL restrictions on the use of banked renewable energy for solar hours. It ruled that the older MYT framework, which allows renewable energy use at any time except during peak hours, would remain in effect.</p>
<p>Stating the impact of the restrictions on energy banking, solar project developers said that it could <a href="https://www.mercomindia.com/maharashtras-energy-banking-rules-could-limit-solar-capacity-additions" target="_blank" rel="noopener">reduce</a> solar savings by at least 10%.</p>
<p>This ruling is expected to have significant implications for Maharashtra’s power sector, reaffirming the requirement for transparency and stakeholder consultation in tariff-related decisions that affect consumers and renewable energy players.</p>


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