India’s central electricity regulator, the Central Electricity Regulatory Commission (CERC), issued an amendment to the Deviation Settlement Mechanism (DSM) regulations in 2015 to apply them to solar and wind power. The regulations aim to ensure grid stability in view of the increasing capacity of variable renewable power. All inter-state grid connected solar and wind power plants are mandated to forecast their generation schedule for day-ahead and week-ahead periods.

Note: Fixed rate is the weighted average of PPAs of all power plants connected to the respective pooling station.

Many states have subsequently issued individual regulations on forecasting, scheduling and deviation settlement broadly in line with the CERC framework. This report compares policy framework across states and assesses challenges faced by project developers in implementation. It also includes a high level overview of similar framework in other countries.