The Centre may soften the proposed penalties on wind and solar power producers who fail to meet their electricity supply commitments to the grid. The move comes after developers warned that the stricter rules could reduce their earnings and discourage investment in the clean energy sector, The Economic Times reported.
The Central Electricity Regulatory Commission had issued a draft regulation in September proposing tighter rules for renewable power producers. The proposal aimed to reduce the gap between the amount of electricity companies promise to supply and the actual power they generate.
The new rules also suggested imposing heavy penalties if companies fail to meet their supply commitments. These regulations were expected to come into effect from April 2026.
However, during a meeting with the country’s power and clean energy ministers in late January, renewable energy developers raised concerns that the new rules could cause significant financial losses. According to meeting minutes, industry representatives also said that the stricter norms could slow down investment in renewable energy projects.
Several industry groups had earlier written to the regulator, requesting a review of the proposal.
Following these concerns, the government asked the power regulator to examine the request of renewable power producers. The meeting minutes indicate that the proposed penalties may now be reconsidered.
The Central Electricity Authority, which advises the power ministry, informed the ministers that the implementation of stricter rules had already been postponed by two years to give companies more time to improve their power generation forecasts.
Despite the delay, developers said the rules could still affect projects that were built under earlier and more flexible regulations.
India has set a target to almost double its non-fossil fuel power capacity to 500 gigawatts by 2030 as part of its clean energy plans.
