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Karnataka High Court Halts Tighter Grid Penalties for Wind and Solar

The pause keeps generators on the older deviation regime pending a court review of whether regulators followed required public consultation.

Overview

  • The Karnataka High Court issued an interim order Monday that stops enforcement of the power regulator’s new deviation formula and higher charges for renewable plants.
  • Until the next hearing on June 10, projects will be settled under the 2014 system, which lets output stray up to 15% from 15‑minute schedules before higher charges apply.
  • Petitioners led by the National Solar Energy Federation of India argue CERC skipped mandatory prior publication and comment under Section 178(3) of the Electricity Act.
  • CERC raised deviation charges on March 31 and set a plan to tighten allowable errors each year through 2031, eventually treating renewables like conventional plants.
  • Industry groups warn the tougher regime would cut revenues and cool investment, a risk for India’s goal of 500 gigawatts of renewable capacity by 2030.