Daily News Wrap-Up: Deviation Limits May Raise Renewable Tariffs
Bombay High Court sets aside MERC order curbing renewable energy banking
November 6, 2025
Follow Mercom India on WhatsApp for exclusive updates on clean energy news and insights
The recent Central Electricity Regulatory Commission’s (CERC) proposal to tighten 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.
Quashing the impugned multi-year tariff (MYT) review order passed 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.
The Tripura Electricity Regulatory Commission (TERC) capped 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.
The South Eastern Railway invited 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.
Textile manufacturing company and the flagship company of the LNJ Bhilwara Group, RSWM, signed 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.
Waaree Forever Energies, a wholly owned subsidiary of Waaree Energies, executed 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.
The Government-owned transmission utility, Power Grid Corporation of India’s board approved 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.
Dharan Infra Solar, a wholly owned subsidiary of engineering, procurement, and construction company Dharan Infra-EPC, executed 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).
Solar cell and module manufacturer Websol Energy System reported 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.
Wind turbine manufacturer Suzlon Energy recorded 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.
Researchers at the University of New South Wales, Sydney, claim they have increased 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.
