India's renewable energy ministry asks regulator to delay stricter green power rules

Economic Times
Economic Times
2d ago 8 views
India's renewable energy ministry has requested a delay in stricter grid supply rules for wind and solar producers, citing potential investment deterrence. The ministry argues that unpredictable weather leads to forecasting errors, making penalties imprudent.
India's renewable energy ministry asks regulator to delay stricter green power rules
A What happened
The Indian renewable energy ministry has formally requested the Central Electricity Regulatory Commission (CERC) to delay the implementation of stricter grid supply rules for wind and solar energy producers. These proposed regulations, part of the Deviation Settlement Mechanism, aim to reduce the allowable gap between committed and actual electricity generation. The ministry argues that unpredictable weather conditions lead to forecasting errors, making penalties for deviations unreasonable. It warns that such penalties could deter investment, particularly affecting small and medium-sized firms. The ministry recommends consulting stakeholders and suggests that future projects should include clean energy storage solutions instead of imposing strict penalties. India aims to double its non-fossil-based power capacity to 500 gigawatts by 2030, making the success of its renewable energy sector crucial.

Key insights

  • 1

    Investment Concerns

    Stricter rules may deter investment in clean energy.

  • 2

    Weather Impact

    Unpredictable weather leads to forecasting errors.

  • 3

    Stakeholder Consultation

    Ministry urges consultation with industry stakeholders.

Takeaways

The renewable energy ministry's request highlights the need for a balanced approach to regulation that considers the challenges faced by producers, particularly in forecasting due to weather variability. This could help maintain investment momentum in India's clean energy sector.

Topics

Environment Climate Change Sustainability Energy