NHPC Invites Bids for 1.2 GW Solar Projects in Uttar Pradesh

REMCL Issues RfS for Supply of 1 GW Round-the-Clock Renewable Power

Funding and M&A Roundup: CleanPeak Energy Raises $328 Million

Project Finance Brief: Exus Secures $300 Million for Solar-Wind Portfolio

Odisha Identifies 45 Pumped Storage Project Sites, to Issue Guidelines Soon

APTEL Upholds Ruling Against Wind Developer’s Power Injection Claim

NTPC Floats O&M Tender for 97 MW Ground-Mounted and Floating Solar Projects 

MNRE Says Solar Projects Set Up to Charge ESS Not Exempt from ALMM

Use of ALMM-listed Solar Cells Mandatory a Month After List Publication

Higher Solar Module Sales Drive Waaree Energies’ Income Up 31% in Q1 FY26


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					</table><p>As India aggressively pursues its clean energy goals, the gap between policy ambition and on-ground execution remains a central concern. With a target of 500 GW of non-fossil fuel capacity by 2030, the urgency to build infrastructure, resolve regulatory friction, and fast-track deployment is greater than ever.</p>
<p>These issues were explored in depth on the second day of the <a href="https://www.mercomindia.com/event/renewables-summit-2025" target="_blank" rel="noopener">Mercom India Renewables Summit 2025</a> during a panel discussion titled <strong>“Scaling Renewable Projects: Overcoming Challenges for Timely Execution.”</strong> The panel featured  Vaibhav Roongta, Chief Business Officer at <a href="https://rayspowerinfra.com/" target="_blank" rel="noopener">Rays Power Infra</a>, Purnendu Chaubey, Senior VP at <a href="https://www.renew.com/" target="_blank" rel="noopener">ReNew</a>, Ajay Kumar Sinha, General Manager at Solar Energy Corporation of India (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>), and Deepak Ushadevi, MD and CEO at <a href="https://ciel-et-terre.net/" target="_blank" rel="noopener">Ciel et Terre Solar</a>.</p>
<p>Priya Sanjay, Managing Director, Mercom India, moderated the discussion.</p>
<p>Kicking off the discussion, Roongta highlighted that while solar module and inverter availability have improved, transmission infrastructure remains the largest constraint. He explained that the lead times for critical high-voltage equipment such as 220 kV and 400 kV switchyards, transformers, and isolators have now reached almost 20 months, making them one of the top reasons for project delays.</p>
<p>He added that developers are now required to secure increasingly larger parcels of land, up to 1,500 acres, for utility-scale solar projects, which has further complicated the land aggregation and registration process. While earlier developers could assemble smaller plots over a few months, the process now takes more than a year in many cases.</p>
<p>Roongta suggested that digitizing the land registration and conversion process could help speed up development timelines. He noted that the current process requires landowners to be physically present for documentation. He proposed that an online registration model, similar to those used in urban real estate for rental agreements, could reduce delays.</p>
<p>Ushadevi emphasized that floating solar remains one of India’s most promising solutions to land constraints, but it continues to face policy and perception hurdles. He explained that while floating solar installations were previously 40% to 50% more expensive than ground-mounted projects, design improvements and economies of scale have now brought the cost difference down to approximately 9% to 12%.</p>
<p>Despite these advances, Ushadevi noted that floating solar still faces challenges related to a lack of regulatory clarity and risk perception. Developers are concerned about long-term sustainability and operations, given that the infrastructure is deployed on water. He highlighted that anchoring systems, flotation stability, and safety mechanisms, which are required to last over 25 years, necessitate different engineering capabilities.</p>
<p>Ushadevi said that most engineering graduates lack the specialized training needed to work on floating solar projects, and companies have had to develop internal training programs to bridge the skill gap.</p>
<p>He also noted that floating solar has advantages beyond land savings, including higher energy output due to natural cooling and significant water conservation. According to him, these benefits are not yet fully captured in current policy frameworks, and stronger incentives and mandates are needed to scale adoption.</p>
<p>Chaubey discussed the increasing importance of storage in renewable energy development. He stated that ReNew’s early investments in hybrid projects, which integrate solar, wind, and battery storage, had proven successful, particularly in meeting peak-hour demand obligations. One of the company’s recent projects in Karnataka includes 150 MWh of battery storage and supplies electricity during morning and evening peak hours under a high-penalty regime.</p>
<p>He also explained that battery costs have declined, making storage financially viable in more projects. Storage is no longer an optional enhancement but a central part of project financial modeling, especially in firm power contracts. According to Chaubey, storage has overtaken wind in importance when designing hybrid solutions.</p>
<p>Chaubey also noted that solar curtailment in Rajasthan has reached 25% to 30% in some areas due to transmission delays and demand-supply mismatches. In such cases, storage could help preserve generation value and grid stability. He welcomed recent policy developments in energy storage but noted that long-term storage procurement frameworks and improved incentives are necessary to accelerate its adoption.</p>
<p>Sinha echoed the importance of storage and explained how SECI is integrating it into a wide range of tenders. He said that most upcoming tender designs now assume a minimum of two hours of energy storage, either through batteries or other mechanisms, to meet dispatch requirements.</p>
<p>He added that SECI has introduced new tender frameworks that use empirical formulas to enable fair competition across multiple technologies. These frameworks aim to prevent tenders from being unintentionally biased toward specific technologies, allowing greater participation and innovation. He said the recent module supply tender was well-received, and SECI would continue refining its approach to make future tenders more inclusive and competitive.</p>
<p>Sinha pointed out that the ability of developers to meet commissioning deadlines is directly tied to timely transmission connectivity. He said that developers are making genuine efforts to meet timelines, but they are often delayed due to the grid infrastructure not being ready.</p>
<p>He added that the commissioning process itself has become more complex, with multiple layers of compliance, testing, and approvals, particularly for hybrid projects.</p>
<p>Sinha also highlighted SECI’s role in providing payment security and stated that it has been instrumental in building investor confidence. While SECI is not currently involved in direct project financing, Sinha said the agency is exploring ways to further reduce the risk for developers through coordination and policy support.</p>
<p>Chaubey emphasized the importance of execution over expansion in the years to come. He said that while many companies have announced large order books and ambitious plans, few have consistently delivered projects. According to him, the sector must shift focus from signing MoUs to completing high-quality, on-time installations. He added that developers should be held to higher accountability standards if the sector wants to sustain investor interest and public trust.</p>
<p>Roongta noted that module manufacturing is scaling rapidly in India, but solar cells remain a weak link. He said that while module manufacturing is relatively simple and cost-effective, cell production is more complex and capital-intensive. As a result, many developers are now backward integrating into cell manufacturing to ensure supply reliability. He added that developers aiming for 2 GW to 3 GW annually cannot afford to be constrained by limited cell availability and must invest in securing their supply chains.</p>
<p>Ushadevi said that as floating solar matures, Indian companies should focus on technology innovation and global market competitiveness. He said that India has already developed industry-leading designs in pontoon structures and anchoring mechanisms and should now position itself as a global exporter of floating solar solutions. He called for more investment in research and development, as well as stronger branding and quality control, to differentiate Indian products in international markets.</p>
<p>The panel also discussed workforce challenges. Chaubey and Ushadevi agreed that most engineering graduates are not job-ready for large-scale renewable projects. While classroom education covers the basics, practical skills required for execution, such as structural design, hydrodynamic modeling, and project logistics, are largely absent. They called for joint training initiatives between industry and government to bridge this talent gap and prepare a new generation of clean energy professionals.</p>
<p>Looking ahead, panelists said that grid integration, project execution, and storage adoption will be the defining factors for India’s energy future. While policy and ambition are aligned, delivering projects at scale, on time, and with reliability will determine whether India reaches its clean energy goals.</p>
<p>In closing remarks, Sinha reiterated that SECI is committed to supporting the sector’s transition from ambition to action. He said that with better coordination, risk-sharing, and long-term planning, India’s renewable sector can not only meet but exceed its 2030 targets.</p>


Lack of Transmission Infrastructure Impacting Power Project Commissioning


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					</table><p>The International Finance Corporation (<a href="https://www.ifc.org/en/home" target="_blank" rel="noopener">IFC</a>) has announced a $20 million equity investment in Mumbai-based electric vehicle (EV) platform Transvolt Mobility (<a href="https://transvolt.in/" target="_blank" rel="noopener">Transvolt</a>), as part of a $50 million financing round.</p>
<p>IFC said the investment will help enhance access to quality urban transport, scale up EV production, and strengthen India’s electric mobility ecosystem.</p>
<p>This equity investment is IFC’s first in an EV platform.</p>
<p>Transvolt aims to utilize the investment to scale its electric fleet portfolio to 3,500 vehicles and create 8,200 jobs over the coming five years. The company also plans to deploy 8,000 heavy commercial EVs, such as buses and trucks, across India.</p>
<p>The company has deployed 500 heavy commercial EVs since the financial year (FY) 2023.</p>
<p>IFC said that India’s transition goals, which include electrifying 800,000 buses, replacing 10% of diesel trucks with 400,000 electric trucks, and electrifying 18% of small commercial vehicles (SCVs) by deploying 111,000 e-SCVs, offer an opportunity to invest in scalable EV solutions across public and private fleets. This opportunity involves mobilizing an estimated $200 billion to complete the transition.</p>
<p>Imad N Fakhoury, IFC’s Regional Director for South Asia at IFC, said, “Our investment in Transvolt will drive the adoption of EVs, especially buses, as they remain the preferred and affordable mode of transportation across India.” He added that IFC’s private sector solutions, including e-mobility, are critical to the World Bank Group’s approach to support India’s urban transformation agenda.</p>
<p>In FY 2024, IFC committed $56 billion in financing to private companies and financial institutions in developing countries.</p>
<p>Transvolt is an original equipment manufacturer-agnostic platform. It offers e-mobility infrastructure capability in the business-to-government, business-to-consumer, and business-to-business segments.</p>
<p>Recently, IFC <a href="https://www.mercomindia.com/ifc-indigrid-to-develop-180-mw-360-mwh-standalone-bess-project-in-gujarat" target="_blank" rel="noopener">committed</a> ₹4.6 billion (~$53.49 million) in long-term financing to IndiGrid through a subscription to listed non-convertible debentures to develop a 180 MW/360 MWh standalone battery energy storage system project in Gujarat.</p>
<p>In June, IFC <a href="https://www.mercomindia.com/ev-kazam-raises-6-2-million-in-series-b-funding" target="_blank" rel="noopener">invested</a> in a Series B fundraising round for Kazam, an EV charging software platform. The platform raised a total of $6.2 million, with existing investors Vertex Ventures SEA and India, as well as Avaana Capital Advisors, participating in the round.</p>


IFC to Invest $20 Million in EV Platform Transvolt Mobility


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					</table><p>The U.S. <a href="https://www.commerce.gov/" target="_blank" rel="noopener">Department of Commerce</a> has imposed a preliminary weighted-average dumping margin of 93.5% on imports of active anode-grade graphite material from China, following an investigation into unfair trade practices.</p>
<p>Anode-grade graphite is a vital component in electric vehicle battery manufacturing.</p>
<p>The decision stems from an anti-dumping and countervailing duty petition filed by the American Active Anode Material Producers, a coalition of five U.S.-based firms: <a href="https://www.anoviontech.com/" target="_blank" rel="noopener">Anovion Technologies</a>, <a href="https://www.syrahresources.com.au/" target="_blank" rel="noopener">Syrah Technologies</a>, <a href="https://www.novonixgroup.com/" target="_blank" rel="noopener">NOVONIX Anode Materials</a>, <a href="https://www.epsilonam.com/" target="_blank" rel="noopener">Epsilon Advanced Materials</a>, and SKI US.</p>
<p>In May, Commerce had <a href="https://www.mercomindia.com/us-sets-preliminary-countervailing-duties-on-chinese-active-anode-material" target="_blank" rel="noopener">determined</a> preliminary countervailing duties of up to 721% on imports of active anode material from China.</p>
<p>In February this year, the U.S. International Trade Commission (<a href="https://www.usitc.gov/" target="_blank" rel="noopener">USITC</a>) preliminarily <a href="https://www.mercomindia.com/us-anti-dumping-investigations-anode-material-china" target="_blank" rel="noopener">determined</a> that such imports materially retarded the growth of the domestic industry.</p>
<p>Commerce found that active anode material from China is being sold in the U.S. at less than fair value. For non-selected Chinese exporters, a dumping margin of 93.5% was calculated based on revised petition margins. The China-wide entity rate is even higher, at 102.72%, assigned using the adverse facts available method.</p>
<p>Mandatory respondents, Contemporary Amperex Technology (CATL) and BTR, were found to be under government control and were denied separate rate status.</p>
<p>Commerce has also issued preliminary countervailing duties. Most Chinese producers face a countervailing duty rate of 6.55%, while exceptionally high subsidy rates were imposed on Huzhou Kaijin New Energy (712.03%) and Shanghai Shaosheng Knitted Sweater (721.03%). The department noted that no export subsidies were identified among cooperative respondents, and no cash deposit adjustments were applied.</p>
<p>The scope of anti-dumping and countervailing duties investigations covers active anode material imported independently or as part of downstream products, including silicon-based blends, compounds, slurries, and battery subassemblies.</p>
<p>Several stakeholders, including Tesla and Panasonic, challenged the inclusion of downstream battery components, but Commerce clarified that only the active anode portion is under investigation, even when embedded in larger assemblies.</p>
<p>Commerce is accepting final scope comments until August 6, 2025. The final determinations in both the anti-dumping and countervailing duties cases are expected by December 5, 2025. CATL and BTR have requested a postponement of the final ruling and an extension of provisional measures.</p>
<p>The outcome will impact the battery materials supply chain, particularly for electric vehicle and energy storage manufacturers reliant on Chinese anode materials.</p>


US Slaps 93.5% Anti-Dumping Tariff on Chinese Anode Graphite Imports


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					</table><p>India had a record year for renewable energy capacity additions in 2024, with solar alone contributing 25.2 GW. For renewable energy to grow at a faster pace and the country to reach its 2030 clean energy goals, policy and regulatory uncertainty, supply chain limitations, transmission infrastructure shortages, and market volatility must be overcome.</p>
<p>These issues will be discussed in depth at the fifth edition of the <a href="https://www.mercomindia.com/event/renewables-summit-2025" target="_blank" rel="noopener">Mercom India Renewables Summit</a>, set to take place on July 24-25, 2025, at the Hyatt Regency, New Delhi.</p>
<p>A key session during the summit on July 25, titled “<strong>Scaling Renewable Projects: Overcoming Challenges for Timely Execution</strong>,” will address the challenges faced by renewable power generators as they attempt to increase the country’s renewable energy capacity and ensure timely project completion.</p>
<p>The one-hour session will be held between 3:20 PM and 4:20 PM.</p>
<p>The panel discussion will feature industry experts from the renewable energy industry, including Vaibhav Roongta, Chief Business Officer at <a href="https://rayspowerinfra.com/" target="_blank" rel="noopener">Rays Power Infra</a>, Purnendu Chaubey, Senior VP at <a href="https://www.renew.com/" target="_blank" rel="noopener">ReNew</a>, Ajay Kumar Sinha, Additional General Manager at <a href="https://www.seci.co.in/" target="_blank" rel="noopener">Solar Energy Corporation of India</a>, and Deepak Ushadevi, MD and CEO at <a href="https://ciel-et-terre.net/" target="_blank" rel="noopener">Ciel et Terre Solar</a>.</p>
<p><a href="https://www.mercomindia.com/event/renewables-summit-2025/register"><img loading="lazy" decoding="async" class="aligncenter wp-image-82182 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SCALING-RENEWABLE-PROJECTS-scaled.jpg" alt="" width="2560" height="1578" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SCALING-RENEWABLE-PROJECTS-scaled.jpg 2560w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SCALING-RENEWABLE-PROJECTS-300x185.jpg 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SCALING-RENEWABLE-PROJECTS-2000x1233.jpg 2000w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SCALING-RENEWABLE-PROJECTS-768x474.jpg 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SCALING-RENEWABLE-PROJECTS-1536x947.jpg 1536w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SCALING-RENEWABLE-PROJECTS-2048x1263.jpg 2048w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SCALING-RENEWABLE-PROJECTS-650x401.jpg 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SCALING-RENEWABLE-PROJECTS-624x385.jpg 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/SCALING-RENEWABLE-PROJECTS-600x370.jpg 600w" sizes="(max-width: 2560px) 100vw, 2560px" /></a></p>
<p>This session will highlight the best practices and innovations for navigating supply chain constraints, fast-tracking regulatory approvals, and enhancing project execution strategies to meet clean energy targets.</p>
<p>The 2025 summit features three side events: the Mercom India Awards, the Cleantech Startup Pitch Competition, and the inaugural Renewable Energy Exhibition.</p>
<p>The <a href="https://www.mercomindia.com/awards" target="_blank" rel="noopener">Mercom India Awards</a> will honor outstanding achievements and the latest technological innovations driving the transformation of India’s energy markets.</p>
<p>The <a href="https://www.mercomindia.com/event/renewables-summit-2025/exhibitor" target="_blank" rel="noopener">Renewable Energy Exhibition</a> will provide a platform for the top industry players and decision-makers to showcase their latest products and services.</p>
<p>The <a href="https://www.mercomindia.com/event/startup" target="_blank" rel="noopener">Startup Pitch Competition</a> will offer startups the opportunity to showcase their innovative technology solutions to potential investors.</p>
<p><a href="https://www.mercomindia.com/event/renewables-summit-2025/register" target="_blank" rel="noopener">Register now</a> to attend the event and contribute to shaping the future of India’s vibrant renewable energy landscape.</p>


Tackling Roadblocks to Accelerate Renewable Project Growth in India


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					</table><p>A consortium of renewable energy project developers, led by <strong>ACWA Power,</strong> <a href="https://www.arabnews.com/node/2607947/business-economy" target="_blank" rel="noopener">signed</a> agreements totaling SAR31 billion (~$8.3 billion) to develop seven solar and wind power projects with a cumulative capacity of 15 GW. The solar projects include the Bisha project in <strong>Saudi Arabia</strong>’s Asir and the Humaij project in Madinah, totaling 6 GW capacity. They also include the Khulis project in Makkah, as well as the Afif 1 and Afif 2 projects in the Riyadh region, also with a cumulative capacity of 6 GW. The consortium will develop two wind power projects: the Starah project (2 GW) and the Shaqra project (1 GW).</p>
<p>The <strong>Saudi Power Procurement Company</strong> and a consortium led by <strong>ACWA Power</strong> have <a href="https://www.pv-magazine.com/2025/07/14/saudi-arabia-signs-5-solar-ppas-totaling-12-gw/" target="_blank" rel="noopener">signed</a> five solar power purchase agreements (PPAs), totaling a capacity of 12 GW. The deals signed by the companies were in partnership with the <strong>Water and Electricity Holding Company </strong>and <strong>Aramco Power</strong>. The PPAs were signed for the 3 GW Humaji project in the western Madinah region, with a levelized cost of electricity (LCOE) of SAR0.049 (~$0.013)/kWh, and for the 2 GW Khulis project in the western Makkah region, with an LCOE of SAR0.051 (~$0.013)/kWh.</p>
<p>According to <strong>Saudi Arabia’s General Authority for Statistics</strong>, the country <a href="https://taiyangnews.info/markets/saudi-arabia-installed-375-gw-new-solar-pv-capacity-2024" target="_blank" rel="noopener">added</a> <strong>3.75 GW</strong> of new solar capacity across five projects in 2024. Solar comprised 6.15 GW, and wind accounted for 400 MW of the added capacity in the renewable power mix. Total investments in renewable energy projects amounted to approximately SAR19.8 billion ($5.27 billion) as of the end of 2024, comprising SAR18.26 billion ($4.8 billion) for a solar and SAR1.57 billion ($420 million) for a wind energy project.</p>
<p>According to the <strong>Energy Industries Council’s</strong> <strong>(EIC)</strong> Survive and Thrive report, 90% of energy companies operating in the <strong>Middle East</strong> reported growth in 2024, with average revenues jumping by 68%. Firms in the <strong>Americas</strong> reported an average 20% growth, followed by the <strong>UK</strong> and <strong>Ireland</strong> at 16%, <strong>Continental Europe</strong> at 13%, and<strong> Asia Pacific</strong> at 8%. With more than 90% of EIC member companies in the Middle East still focusing on oil and gas, the growth of investment into renewables, hydrogen, and digital infrastructure reveals a willingness to embrace what’s next, without abandoning what works now.</p>
<p><strong>Oman’s </strong>solar and wind share in the power mix <a href="https://www.utilities-me.com/news/oman-renewable-energy-2025" target="_blank" rel="noopener"><strong>surged</strong></a> by 11.5% in the first five months of 2025, over doubling from approximately 4.88% at the end of December 2024. The Nama Power and Water Procurement Company contributed 1.88 terawatt-hours (TWh) of renewable energy between January and May 2025. The 1.88 TWh of power generated nearly reaches the total renewable output of 2.4 TWh recorded for the whole of 2024.</p>


MENA Weekly Round-Up: Saudi Consortium to Build 15 GW Solar, Wind Projects


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					</table><p>The Karnataka Electricity Regulatory Commission (<a href="https://kerc.karnataka.gov.in/en">KERC</a>) has issued the Intra-State Deviation Settlement Mechanism and Related Matters Regulations, 2025, to establish a commercial mechanism to ensure grid users’ adherence to scheduled electricity drawal and injection, and maintain grid security and stability.</p>
<p>The regulations apply to all grid-connected entities engaged in the intrastate purchase and sale of electricity within the state.</p>
<p>The commission <a href="https://www.mercomindia.com/karnataka-introduces-deviation-mechanism-for-unscheduled-power-usage">issued</a> the draft document in October last year.</p>
<p><strong>Availability-Based Tariff (ABT) and Deviation Settlement Mechanism</strong></p>
<p>Under the ABT regime, the tariff comprises three components:</p>
<ul>
<li>Fixed/Capacity Charges: Charges payable to generators based on the allocated capacity and are tied to the daily declared availability of the generating stations, measured in MW</li>
<li>Energy/Variable Charges: Energy charges or variable charges payable on the scheduled energy irrespective of actual drawal</li>
<li>Deviation Charges: Charges accounting for the variation between actual and scheduled generation or actual and scheduled drawal</li>
</ul>
<p><strong>Intra-State ABT Applicability</strong></p>
<p>The intra-state ABT will govern the following:</p>
<ul>
<li>Wind, solar, and wind-solar (WS) hybrid generating stations with installed capacities exceeding 5 MW, supplying power under long-term, medium-term, or short-term contracts to state distribution licensees at tariffs determined under Section 62 or 63 of the Electricity Act</li>
<li>All conventional fuel-based generators, including captive generating projects (CGPs), that sell power directly through electricity traders or exchanges, intending to supply power to state distribution licensees under short-term contracts</li>
<li>All generating stations, including renewable energy projects and CGPs, are selling power outside Karnataka under long, medium, or short-term contracts</li>
<li>Generating stations, including renewable energy projects and CGPs, sell power to intra-state consumers under long, medium, or short-term contracts</li>
<li>Distribution licensees drawing power from the state grid</li>
<li>All open-access consumers and captive users within Karnataka who procure or receive power through the state grid will be governed by the intra-state ABT for electricity supplied by generating stations or licensees under inter-state or intra-state ABT</li>
</ul>
<p><strong>Applicability of Deviation Charge Component under the Intra-State ABT</strong></p>
<p>The following entities will be governed by the intra-state ABT only concerning applicable deviation charges:</p>
<ul>
<li>All small-scale consumers in Karnataka are procuring power through open access</li>
<li>All generators, including CGPs, that sell power directly or through electricity traders, are contracted to supply power exclusively to small-scale consumers and/or medium-scale consumers</li>
<li>All generators, including CGPs, that sell power directly or through electricity traders, are contracted to supply power exclusively to licensees or consumers located outside Karnataka</li>
</ul>
<p><strong>Computation of Deviation</strong></p>
<p>Every grid-connected state entity must adhere to its schedule as per the Grid Code and not deviate from it. The State Load Despatch Centre (SLDC) must manage any deviation.</p>
<p>Deviation charges will be calculated as follows:</p>
<ul>
<li>Deviation in a time block for General sellers will be computed as follows:</li>
</ul>
<p>Deviation – general seller (DGS) (in MWh) = [(Actual injection in MWh) – (Scheduled generation in MWh)].</p>
<p>Deviation – general seller (DGS) (in %) = 100 x [(Actual injection in MWh) – (Scheduled generation in MWh)] / [(Scheduled generation in MWh)]</p>
<ul>
<li>Deviation in a time block for RE seller other than WS/WSH seller will be computed as follows:</li>
</ul>
<p>Deviation – RE seller (in MWh) = [(Actual injection in MWh) – (Scheduled generation in MWh)].</p>
<p>Deviation – RE seller (in %) = 100 x [(Actual injection in MWh) – (Scheduled generation in MWh)] / [(Scheduled generation in MWh)].</p>
<ul>
<li> Deviation in a time block for buyers will be computed as follows:</li>
</ul>
<p>Deviation – buyer (DBUY) (in MWh) = [(Actual drawal in MWh) – (Scheduled drawal in MWh)].</p>
<p>Deviation – buyer (DBUY) (in %) = 100 x [(Actual drawal in MWh) – (Total Scheduled drawal in MWh)] / [(Total Scheduled drawal in MWh)].</p>
<p><strong>Normal Rate of Charges for Deviation</strong></p>
<p>The Normal Rate (NR) of charges for deviation for a particular time block will be the highest of (A), (B), or (C), where (A), (B), and (C) are as follows:</p>
<p>(A) The weighted average ACP (in Paise /kWh) of the Integrated- Day Ahead Market segments of all the Power Exchanges.</p>
<p>(B) The weighted average ACP (in Paise /kWh) of the Real Time Market segments of all the Power Exchanges.</p>
<p>(C) The sum of: (a) 1/3 [ Weighted average ACP (in paise/kWh) of the Integrated- Day Ahead Market segments of all the Power Exchanges]; (b) 1/3 [ Weighted average ACP (in paise/kWh) of the Real-Time Market segments of all the Power Exchanges]</p>
<p>(c) 1/3 [Ancillary Service Charge (in paise/kWh) computed based on the total quantum of Ancillary Services (SRAS UP and TRAS UP) deployed and the net charges payable to the Ancillary Service Providers for all the Regions]: Provided that in case of non-availability of ACP for any time block on a given day, ACP for the corresponding time block of the last available day will be considered.</p>
<p><strong>Deviation charges</strong></p>
<p><strong> <a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-5.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-82147 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-5.png" alt="KERC 5" width="772" height="698" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-5.png 772w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-5-300x271.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-5-768x694.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-5-650x588.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-5-624x564.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-5-600x542.png 600w" sizes="(max-width: 772px) 100vw, 772px" /></a> </strong></p>
<p><strong><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-4.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-82148 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-4.png" alt="KERC 4" width="780" height="201" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-4.png 780w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-4-300x77.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-4-768x198.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-4-650x168.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-4-624x161.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-4-600x155.png 600w" sizes="(max-width: 780px) 100vw, 780px" /></a></strong></p>
<p><strong> <a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-82149 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-2.png" alt="KERC 2" width="819" height="292" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-2.png 819w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-2-300x107.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-2-768x274.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-2-650x232.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-2-624x222.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-2-600x214.png 600w" sizes="(max-width: 819px) 100vw, 819px" /></a></strong></p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-3.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-82152 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-3.png" alt="KERC 3" width="794" height="594" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-3.png 794w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-3-300x224.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-3-768x575.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-3-650x486.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-3-624x467.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/KERC-3-600x449.png 600w" sizes="(max-width: 794px) 100vw, 794px" /></a></p>
<p><strong>Scheduling and Despatch</strong></p>
<p>Sellers/buyers will bear energy loss (transmission loss or distribution loss) for their injection /drawal schedules at the interface point with the state grid.</p>
<p>The seller supplying power in the short term must submit a monthly declared capacity. Accordingly, buyers must submit their requirements to SLDC in 15-minute time blocks, and based on these, SLDC will finalize the injection/drawal schedule.</p>
<p>If the sellers/buyers fail to submit the declared capacity/drawal requirement for power scheduling, it will be considered zero for all purposes. However, a maximum of two schedule revisions per month, with advance intimation to SLDC and the distribution licensee, will be allowed, effective from 00:00 hours on the next day.</p>
<p>For day-ahead transactions, the seller will convey the declared capacity/schedules to SLDC one day in advance, up to 08:00 hours of the day.</p>
<p>SLDC may refuse to accept schedule/capability changes of less than 2% of the previous schedule/capability or 0.5 MW, whichever is more.</p>
<p>The SLDC may revise the schedules. The revised schedules will become effective from the 4th time block, counting the time block in which the SLDC issues the revised schedule to be the first one.</p>
<p>SLDC may curtail the transactions that are already scheduled due to transmission constraints.</p>
<p><strong>Energy accounting and settlement</strong></p>
<ul>
<li>Settlement of energy at the drawal point in respect of a Single Supply Consumer</li>
</ul>
<p>The scheduled drawal (MWh) at the drawal point will be computed for each time block from the scheduled drawal (in MW) for such consumer through open access at the drawal point, considering the energy losses of the State grid.</p>
<p>All excess energy consumed will be treated as consumed by the consumer from the State grid, treated as deviation, and paid by the consumer at the applicable DSM charge.</p>
<ul>
<li>Settlement of energy at drawal point in respect of Multiple Supply Consumer</li>
</ul>
<p>The total scheduled drawal at the drawal point will be computed for each time block, considering contract demand (in MVA) with the licensee (considering power factor 0.90) and drawal schedule for the consumer through open access at the drawal point by considering the losses of the state grid.</p>
<p>If the distribution licensee levies demand charges, the actual drawal will first be set off against the actual demand scheduled through open access for the respective time block, and the remaining amount will be considered as drawal against the contract demand with the distribution licensee.</p>
<p>Energy charges for medium-scale consumers receiving power other than solar power will be levied by the distribution licensee according to the respective tariff, based on the actual energy consumed in the billing month, after deducting the energy scheduled for open access.</p>
<p><strong>Deviation Charge Payment and Settlement</strong></p>
<p>Deviation charges are settled via the state deviation pool account maintained by the distribution licensee. Payment will be due within 10 days of DSM account issuance. Any delay beyond the due date attracts 0.04% daily interest. A letter of credit (LC) is mandatory for entities with prior defaults, equal to 110% of the peak weekly/monthly liability. Non-payment leads to LC encashment and recovery action.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>


Karnataka Electricity Regulator Issues Deviation Settlement Guidelines


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					</table><p>The <a href="https://delhi.gov.in/" target="_blank" rel="noopener">Delhi Government</a> has notified the first amendment to the Delhi Solar Energy Policy 2023, increasing the state capital subsidy for residential rooftop solar systems. The revised subsidy now stands at ₹10,000 (~$116.28)/kW, capped at ₹30,000 (~$348.84) for systems with a capacity of up to 3 kW.</p>
<p>In the draft Delhi Solar Energy Policy, 2023, the Delhi government <a href="https://www.mercomindia.com/delhis-draft-solar-policy-targets-mw-capacity-2025" target="_blank" rel="noopener">offered</a> a state capital subsidy of ₹2,000 (~$23.26)/kW with a cap of ₹10,000 (~$116.28)/consumer.</p>
<p>The amendment also introduces a new capital subsidy for group housing societies (GHS) and resident welfare associations (RWAs). A subsidy of ₹2,000 (~$23.26)/kW will now be provided for solar capacity installed for common facilities, including electric vehicle (EV) charging infrastructure, up to 500 kW. This 500 kW cap includes both common facilities and rooftop solar systems installed by individual households within the society.</p>
<p>Subsidy disbursements will be carried out through the direct benefit transfer (DBT) system. Data for installations registered through the national PM Surya Ghar portal will be automatically sourced for DBT. In cases where applications are submitted outside the national portal, details will be collected via the Delhi Solar Portal.</p>
<p>Subsidy will be paid to distribution companies (DISCOMs) after the net meter installation and submission of claim documents if they act as companies (RESCOs).</p>
<p>The amendment also modifies the hybrid RESCO model. Under the updated structure, RESCO developers will install rooftop solar systems on consumer premises, and consumers will receive a single consolidated electricity bill from the DISCOMs.</p>
<p>Under the amendment, solar project installation in the RESCO model will be combined with solar bill payment to the RESCO developer through DISCOMs at a predetermined tariff.  This contrasts with the previous model, where consumers signed separate agreements with RESCO developers and DISCOMs.</p>
<p>A generation-based early-bird incentive has been introduced for commercial and industrial consumers adopting the hybrid RESCO model. This incentive will apply to the first 200 MW of installed capacity and will be paid to the RESCO developer.</p>
<p>Last March, the Delhi Government <a href="https://www.mercomindia.com/delhi-new-solar-policy" target="_blank" rel="noopener">announced</a> plans to install 4,500 MW of solar capacity, including 750 MW of rooftop solar within the state and approximately 3,750 MW of utility-scale solar outside the state, by 2027.</p>


Delhi Raises Residential Rooftop Solar Subsidy to ₹10,000/kW


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					</table><p>The Appellate Tribunal for Electricity (<a href="https://www.aptel.gov.in/en" target="_blank" rel="noopener">APTEL</a>) has confirmed that transmission systems built, owned, and operated by the Central Transmission Utility (CTU) qualify as an interstate transmission system (ISTS) even if located within a single state.</p>
<p>The ruling came while dismissing the Tamil Nadu Generation and Distribution Corporation&#8217;s (TANGEDCO) appeal, which challenged the Central Electricity Regulatory Commission&#8217;s (CERC) classification of transmission assets developed by Power Grid Corporation of India (PGCIL) for evacuating power from the NP Kunta Solar Park as part of the ISTS.</p>
<p>The Tribunal ruled that the tariff for these assets must be recovered through the point of connection (PoC) mechanism, as per the CERC Sharing Regulations, 2010.</p>
<p><strong>Background </strong></p>
<p>The dispute arose from CERC&#8217;s order which approved the transmission tariff for assets built by PGCIL to evacuate power from the NP Kunta Solar Park, located in Andhra Pradesh. These assets included a 400/220 kV substation at NP Kunta and a LILO (Line-In-Line-Out) of the 400 kV Kadapa-Kolar transmission line.</p>
<p>The power evacuated from this solar park, developed by Andhra Pradesh Solar Power Corporation, was almost entirely consumed within Andhra Pradesh, with 90% of the power contracted to state distribution companies.</p>
<p>TANGEDCO objected to the inclusion of these transmission assets in the ISTS network, arguing that the infrastructure served only a state-specific project and did not facilitate interstate power flow. It contended that since the project was meant exclusively for Andhra Pradesh and was partially funded under the Ministry of New and Renewable Energy (MNRE) programs, its cost should not be socialized among all PoC payers across India.</p>
<p>The appellant argued that the system should be classified as a dedicated transmission line, and such systems are to be built and financed by the generating entity. It also claimed that PGCIL, which had executed the project, had not entered into any transmission service agreement with the Andhra Pradesh utilities and had failed to secure funding under the MNRE&#8217;s Green Energy Corridor or National Clean Energy Fund programs.</p>
<p>PGCIL maintained that the project was planned and executed after receiving regulatory approval from CERC under its 2010 Regulations. It submitted that the assets were developed in its capacity as CTU and thus formed part of the ISTS. It argued that the asset&#8217;s location within a single state did not disqualify it from ISTS classification.</p>
<p>PGCIL also clarified that partial MNRE grants had been received and adjusted against the capital cost, with the remaining cost subjected to tariff determination.</p>
<p>CERC&#8217;s impugned order had approved the tariff and directed that the cost be shared under the PoC mechanism. TANGEDCO challenged this because there was no interstate power flow, and that socializing the tariff unfairly burdened other State utilities that did not benefit from the assets.</p>
<p><strong>Tribunal&#8217;s Analysis</strong></p>
<p>APTEL identifying two central questions: i) first, whether the transmission system built by PGCIL for evacuating power from the NP Kunta Solar Park can be classified as an ISTS, despite the power being consumed entirely within Andhra Pradesh and ii) second, whether TANGEDCO could challenge the classification and tariff order after having failed to contest the regulatory approval earlier granted by CERC.</p>
<p>On the first question, the Tribunal referred to Section 2(36)(iii) of the Electricity Act, 2003, which explicitly includes within ISTS any system built, owned, operated, maintained, or controlled by a CTU, even if the system is located entirely within a single State. The Tribunal rejected TANGEDCO&#8217;s argument that actual cross-border power flow was necessary for ISTS classification. It found that the statutory provision confers ISTS status on CTU-built infrastructure, regardless of geographical boundaries or usage patterns.</p>
<p>The Tribunal also dismissed the claim that the NP Kunta system was a dedicated line. It clarified that dedicated lines, as defined under the Act, are constructed by the generating company or captive generator to connect directly to the grid, and not by a CTU like PGCIL. The infrastructure in question was developed by a licensed transmission utility with regulatory approval, and thus did not qualify as a dedicated line.</p>
<p>In response to the absence of a transmission service agreement between PGCIL and Andhra Pradesh utilities, APTEL held that the regulatory framework does not mandate a transmission service agreement as a condition for tariff recovery under the PoC regime. The CERC Sharing Regulations outline procedures for billing and payment, but do not limit cost recovery from designated ISTS customers if the asset is an ISTS.</p>
<p>Regarding funding, APTEL noted that while the MNRE guidelines encourage partial funding of evacuation infrastructure, PGCIL had received a grant and adjusted it against the project cost. The remaining cost was appropriately submitted for regulatory approval and tariff determination, which was done through the impugned order.</p>
<p>The Tribunal acknowledged that the transmission system, being interconnected to the Kolar-Kadapa 400 kV line, contributed to grid strengthening and potential interstate transfers in the future, even if the present power flow was unidirectional and confined to Andhra Pradesh.</p>
<p>Recently, the Central Electricity Regulatory Commission <a href="https://www.mercomindia.com/no-ists-charges-waiver-solar-wind-june-2028/" target="_blank" rel="noopener">issued</a> a time frame for waiving ISTS charges for renewable energy, energy storage projects, green hydrogen, and green ammonia.</p>
<p>Subscribe to Mercom&#8217;s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you don&#8217;t miss any critical updates from the renewable industry.</p>


APTEL Rules Transmission Line Built by CTU Deemed Interstate System  


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					</table><p><a href="https://www.panasonic.com/global/energy/" target="_blank" rel="noopener">Panasonic Energy</a>, a <a href="https://holdings.panasonic/global/" target="_blank" rel="noopener">Panasonic Group</a> company, has announced the opening of its new cylindrical lithium-ion (Li-ion) battery factory for electric vehicles (EV) in De Soto, in the U.S. state of Kansas.</p>
<p>The company has also begun mass-producing its 2170 battery cells at the Kansas plant. It aims to achieve an annual production capacity of approximately 32 GWh. The factory is built on roughly 300 acres of land.</p>
<p>Panasonic Energy aims to utilize the Kansas facility to increase its U.S.-based production capacity to approximately 73 GWh. The new facility will also help meet the demand from automotive consumers who are increasing their EV production.</p>
<p>The company also has a production facility in Sparks, Nevada, with a production capacity of roughly 41 GWh. The Nevada factory has been operational since 2017 and has delivered over 11 billion cells to date.</p>
<p>Panasonic Energy said it aims to build on this experience to advance its manufacturing capabilities and achieve stable mass production at the Kansas facility at an early stage.</p>
<p>Utilizing its production lines, the Kansas factory is expected to achieve approximately 20% higher productivity compared to the Nevada facility. The company aims to introduce products using advance materials to improve cell capacity by roughly 5%.</p>
<p>Panasonic Energy stated that it is collaborating with institutions such as the University of Kansas to foster long-term partnerships between industry and academia, centered on technological advancements and specialized talent development.</p>
<p>The company produces Li-ion cells with a volumetric energy density of 800 Wh/L, with about 19 billion cells supplied as of March this year. It claims the cells have powered approximately 3.7 million EVs.</p>
<p>In April this year, Panasonic’s North American division <a href="https://www.mercomindia.com/panasonic-exits-solar-and-battery-storage-business" target="_blank" rel="noopener">announced</a> it would be discontinuing its solar and battery storage business.</p>
<p>Last year, Panasonic <a href="https://www.mercomindia.com/battery-smart-expand-battery-swapping-network" target="_blank" rel="noopener">participated</a> in Battery Smart’s $65 million fundraising round in a Series B. LeapFrog Investments led this round. Other investors included MUFG Bank, Ecosystem Integrity Fund, Blume Ventures, and British International Investment.</p>


Panasonic Opens EV Battery Manufacturing Plant in Kansas


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					</table><p>The Andhra Pradesh Electricity Regulatory Commission (<a href="https://aperc.gov.in/" target="_blank" rel="noopener">APERC</a>) has fixed connection charges for new or additional loads up to 150 kW to streamline electricity connections for small and medium consumers.</p>
<p>These charges will only apply when the service location lies within 1 km of an electrified network. The maximum length of the service line must not exceed 1 km. The charges, categorized by type of service, are to be applied during the financial year 2025–26.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Electricity-Connection-Charges-for-FY-2025-26-in-Andhra-Pradesh-2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81973 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Electricity-Connection-Charges-for-FY-2025-26-in-Andhra-Pradesh-2.png" alt="Electricity Connection Charges for FY 2025-26 in Andhra Pradesh" width="767" height="588" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Electricity-Connection-Charges-for-FY-2025-26-in-Andhra-Pradesh-2.png 767w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Electricity-Connection-Charges-for-FY-2025-26-in-Andhra-Pradesh-2-300x230.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Electricity-Connection-Charges-for-FY-2025-26-in-Andhra-Pradesh-2-650x498.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Electricity-Connection-Charges-for-FY-2025-26-in-Andhra-Pradesh-2-624x478.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Electricity-Connection-Charges-for-FY-2025-26-in-Andhra-Pradesh-2-600x460.png 600w" sizes="(max-width: 767px) 100vw, 767px" /></a></p>
<p>For domestic services under the LT-I category, the charges are defined as follows:</p>
<ul>
<li>For up to 500 W of contracted load, the connection charge is ₹800 (~$9.32)</li>
<li>For loads between 501 and 1,000 W, it is ₹1,500 (~$17.48). For loads above 1 kW and up to 20 kW, the charge is ₹1,500 (~$17.48) plus ₹ 2000 (~$23.30)/kW or part thereof of the contracted load</li>
<li>For loads ranging from 20 kW to 150 kW, the charge is ₹12,600 (~$146.82)/kW or part thereof</li>
</ul>
<p>For non-domestic and commercial services under the LT-II category, the charges differ slightly:</p>
<ul>
<li>For up to 250 W, the charge is ₹600 (~$7.99). For 251 to 500 W, the cost is ₹1,000 (~$11.65). For 501 watts up to 1 kW, the charge is ₹1800 (~$20.97)</li>
<li>For loads ranging from 1 kW to 20 kW, the charge is ₹1800 (~$20.97) plus ₹2,000 (~$23.30)/kW or part thereof</li>
<li>For loads ranging from 20 kW to 150 kW, the charge is ₹12,600 (~$146.82)/kW or part thereof.</li>
</ul>
<p>For LT industrial and other services under LT-III and LT-IV categories, the charges are as follows:</p>
<ul>
<li>The charge for up to 20 kW is ₹2000 (~$23.30)/kW or part thereof</li>
<li>For loads ranging from 20 kW to 150 kW, the rate is ₹12,600 (~$146.82)/kW or part thereof</li>
</ul>
<p>The charge for HT services operating at 11 kV and with contracted loads between 75 kW and 150 kW is ₹4,400 (~$51.27)/kW or part thereof. In this case, the distribution transformer falls within the scope of the consumer.</p>
<p>Consumers whose load exceeds 100 HP, or 75 kW, may choose between LT or HT supply, up to 150 kW. Those who opt for LT supply for loads between 75 kW and 150 kW will be billed at the tariffs specified in the retail supply tariff (RST) orders.</p>
<p>For the financial year 2025–26, the tariffs applicable under LT supply up to 75 kW will also be extended to cover up to 150 kW. A separate tariff specified in the RST order will apply for connections of up to 150 HP.</p>
<p>Consumers must also pay the pertinent application fee and security deposit charges per the relevant regulations notified by the Commission.</p>
<p>Certain categories are exempt from the standard connection charges listed in the amendment. These categories include connections located beyond 1 km from an electrified area, electrification of layouts, agricultural and related categories, farmhouses, and underground cable installations.</p>
<p>The Commission has also stated that all LT consumers, except those in the agricultural category, whose contracted load exceeds 20 kW, must be supplied power through a dedicated transformer. The licensee is prohibited from extending this transformer’s supply to any other consumer.</p>
<p>Recently, the Commission <a href="https://www.mercomindia.com/andhra-pradesh-retains-last-years-electricity-tariffs-for-fy-2026/" target="_blank" rel="noopener">announced</a> the tariff for the retail sale of electricity for the financial year 2026, with the tariffs for commercial, industrial, and domestic consumers in Andhra Pradesh remaining unchanged from the previous year.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you don’t miss any critical updates from the renewable industry.</p>


Andhra Pradesh Simplifies Process for New Electricity Connections Up to 150 kW


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					</table><p>The Ministry of Heavy Industries (<a href="https://heavyindustries.gov.in/" target="_blank" rel="noopener">MHI</a>) has issued a notification for the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) program, offering demand incentives for electric trucks (e-trucks).</p>
<p>Under the notice, the following categories of e-trucks will be eligible for the incentives:</p>
<ul>
<li>N2 – trucks with gross vehicle weight (GVW) more than 3.5 tons but not exceeding 12 tons</li>
<li>N3 – trucks with GVW exceeding 12 tons but under 55 tons</li>
</ul>
<p>For articulated vehicles, only puller tractors (tractor-trailer combinations) under the N3 category will be eligible for the incentives.</p>
<p>E-trucks will receive the lesser of the following demand incentives:</p>
<ul>
<li>₹5,000 (~$58.28) multiplied by battery capacity measured in kilowatt-hour (kWh)</li>
<li>10% of the truck’s ex-factory price (excluding trailer)</li>
</ul>
<p>The incentives will be distributed per GVW as follows:<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Picture5-1-e1752236236778.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81877 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Picture5-1-e1752236236778.png" alt="" width="532" height="232" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Picture5-1-e1752236236778.png 532w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Picture5-1-e1752236236778-300x131.png 300w" sizes="(max-width: 532px) 100vw, 532px" /></a>E-trucks will receive the incentive only after submitting a certificate of deposit (CD) issued by the Ministry of Road Transport and Highways (MoRTH)-authorized internal combustion truck scrapping facilities. These facilities must cater to internal combustion trucks of at least the same GVW as the e-trucks. The CD’s transferability will adhere to the MoRTH norms.</p>
<p>The authenticity, validity, ownership, and GVW in the CDs will be verified under the PM E-DRIVE and Vahan portals.</p>
<p>The performance and efficiency eligibility criteria for e-trucks are as follows:</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electric-trucks1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81868 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electric-trucks1.png" alt="" width="886" height="373" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electric-trucks1.png 886w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electric-trucks1-300x126.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electric-trucks1-768x323.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electric-trucks1-650x274.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electric-trucks1-624x263.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electric-trucks1-600x253.png 600w" sizes="(max-width: 886px) 100vw, 886px" /></a></p>
<p>Last year, the PM E-Drive was <a href="https://www.mercomindia.com/cabinet-pm-edrive-program" target="_blank" rel="noopener">launched</a> with an outlay of ₹109 billion (~$1.29 billion), focusing on providing demand incentives, deploying electric vehicles (EVs), and developing charging infrastructure to support wider adoption of such vehicles.</p>
<p>In March this year, MHI <a href="https://www.mercomindia.com/mhi-mandates-100-dcr-requirement-for-18-ev-components-under-pm-e-drive" target="_blank" rel="noopener">mandated</a> a 100% domestic content requirement for 18 EV components under the two-wheeler, three-wheeler, and e-bus segments to be eligible for a subsidy under the PM E-Drive program.</p>
<p>EV sales in India <a href="https://www.mercomindia.com/electric-vehicle-sales-clock-34-yoy-growth-in-q2-2025" target="_blank" rel="noopener">reached</a> 530,386 units in the second quarter (Q2) of 2025, an over 34% year-over-year increase from 396,719 units. EVs accounted for 8% of the overall automobile sales, which totaled 6,554,775 units in Q2 2025, according to data released by the Ministry of Road Transport and Highways through its Vahan Dashboard.</p>


MHI Announces Demand Incentives for Electric Trucks Under PM E-Drive


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					</table><p>REC Power Development and Consultancy (<a href="https://www.recpdcl.in/" target="_blank" rel="noopener">RECPDCL</a>) has signed agreements to deploy 3.32 million smart prepaid meters in Paschim Gujarat Vij Company’s (<a href="https://www.pgvcl.com/" target="_blank" rel="noopener">PGVCL</a>) jurisdictional area as part of the Phase II rollout of the Revamped Distribution Sector Scheme (RDSS).</p>
<p>The implementation will follow the design, build, finance, own, operate, and transfer model. RECPDCL signed the project implementation agency and the distribution department framework agreements for the project.</p>
<p>It also signed an advanced metering infrastructure service provider contract agreement with Bharat Grid, a <a href="https://www.mercomindia.com/edf-proposes-partnerships-with-ntpc-cil-and-actis-for-renewables" target="_blank" rel="noopener">partnership</a> venture between global infrastructure investor Actis and EDF India, the Indian arm of Électricité de France.</p>
<p>Bharat Grid will replace conventional meters in the electricity distribution network with smart prepaid meters.</p>
<p>The key benefits of this initiative include a reduction in the aggregate technical and commercial losses, improved billing efficiency, real-time monitoring of electricity usage, reduced downtime, and better consumer engagement.</p>
<p>Consumers will be able to track and manage their electricity consumption through digital interfaces, while the utility will gain access to data for demand forecasting and grid management. This initiative is part of the Indian government’s broader RDSS objective to digitalize and make the distribution sector financially more sustainable and operationally efficient.</p>
<p>Under the Smart Meter National Program, as part of the RDSS, the government has set a target to install 250 million electricity consumer smart meters by the end of the financial year 2026. However, with less than a year to go before the program ends, the <a href="https://www.mercomindia.com/smart-meter-deployment-dismal-sunset-date-just-a-year-away" target="_blank" rel="noopener">achievement</a> is dismal.</p>
<p>The government provides a grant of ₹900 (~$10.3), or 15% of the cost, whichever is lower, for every smart meter.</p>
<p>The parliamentary standing committee on energy commented in a December 2024 report that the target of installing 250 million smart meters by the year 2025-26 “seems to be a difficult task.”</p>


RECPDCL Signs Agreements for Installing 3.32 Million Smart Meters in Gujarat


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					</table><p>The Himachal Pradesh Electricity Regulatory Commission (<a href="https://hperc.org/" target="_blank" rel="noopener">HPERC</a>) has finalized its Resource Adequacy Framework Regulations, 2025. These regulations aim to ensure that the state’s generating companies, distribution licensees, distribution companies (DISCOMs), and load dispatch centers contract sufficient electricity generation capacity to meet peak demand reliably, cost-effectively, and sustainably.</p>
<p>The draft regulation was <a href="https://www.mercomindia.com/hperc-issues-draft-frameworl-resource-adequacy-electricity-demand" target="_blank" rel="noopener">released</a> in February this year.</p>
<p>The regulations provide a legal mandate for demand forecasting, capacity planning, and power procurement.</p>
<p>Under the finalized framework, DISCOMs must demonstrate a 100% capacity tie-up in the first compliance year and a 90% tie-up in the second. The Commission retained its earlier position that short-term power purchases, including those from the day-ahead market and real-time market, will not be counted toward meeting resource adequacy requirements (RAR).</p>
<p>It also reiterated that over 85% of the DISCOMs’ capacity must be sourced through long-term power purchase agreements, with only limited procurement allowed from short-term contracts.</p>
<p><strong>Demand Forecasting</strong></p>
<p>One of the key changes in the final order is the approval of periodic validation and refinement of demand forecasting models. A provision was added to the regulations to permit DISCOMs to refine and improve their forecasting techniques using real-time data and emerging consumption trends.</p>
<p>This flexibility enables the use of hybrid forecasting methodologies, including artificial intelligence such as machine learning, autoregressive integrated moving average models, trend analysis, and econometric models.</p>
<p><strong>Capacity Credit Method Retained</strong></p>
<p>Despite stakeholder requests to alter the capacity credit factor for renewable energy, HPERC retained the methodology based on the top 250 peak demand hours using the ‘net load base’ approach. Suggestions to revise the hours or use actual generation instead of availability were rejected.</p>
<p><strong>OTC Platforms Rejected</strong></p>
<p>The Commission firmly rejected proposals to recognize over-the-counter (OTC) platforms for electricity procurement or coordination. HPERC stated that OTC platforms are not recognized under the Ministry of Power’s bidding guidelines, cannot facilitate price discovery, and do not ensure the formation of legally binding contracts. Only the discovery of efficient electricity prices and the use of power utilities&#8217; short-term procurement platforms will be permitted for procurement under these regulations.</p>
<p>The request to allow electricity banking through OTC platforms was similarly denied, with the Commission mandating that such transactions must be conducted through open bidding. The Commission also declined to mandate competitive bidding for emergency procurement, allowing DISCOMs flexibility during unforeseen demand surges or outages.</p>
<p><strong>Compliance Definitions Unchanged</strong></p>
<p>Regulation 17, which deals with compliance and evaluation, was retained without modification despite suggestions to clarify definitions for surplus tie-ups, demand projection errors, and shortfalls. The Commission held that existing provisions under the resource adequacy plan already account for these scenarios.</p>
<p><strong>Digital Platforms and Demand Response</strong></p>
<p>While stakeholders pushed for a unified digital platform and the inclusion of demand response mechanisms in RAR calculations, the Commission noted that these are already factored into operational procedures. It declined to include them within the regulations, considering them procedural rather than regulatory matters.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>


Himachal Electricity Regulator Finalizes Resource Adequacy Framework Regulations


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					</table><p>The Multi Commodity Exchange of India (<a href="https://www.mcxindia.com/" target="_blank" rel="noopener">MCX</a>), a commodity derivatives and options exchange, will launch electricity futures contracts from  July 10, 2025, enabling power producers, distributors, and large power consumers to manage risks associated with price volatility.</p>
<p>The exchange had <a href="https://www.mercomindia.com/mcx-gets-sebi-nod-to-trade-electricity-derivatives">received</a> approval from the Securities and Exchange Board of India <a href="https://www.sebi.gov.in/" target="_blank" rel="noopener">(SEBI)</a> in June to launch electricity derivatives.</p>
<p>Electricity futures are financial instruments that derive their value from electricity prices and are primarily used for hedging, speculation, or arbitrage.</p>
<p>MCX stated that the electricity futures contracts aim to meet the growing demand for structured electricity price risk management instruments.</p>
<p>India’s power sector has until now relied on long-term power purchase agreements to mitigate price volatility. These contracts offer price stability but lack adaptability, as they do not reflect changing supply and demand conditions. The short-term power market, facilitated by power exchanges, has become increasingly unpredictable, posing risks for both generators and consumers.</p>
<p>Electricity future contracts are seen as a potential solution to these challenges.</p>
<p>These contracts will be available throughout the year. Its trading will be initially opened for the current and the following three months. The trades will occur in units of 50 MWh, with the smallest change in price (tick size) of ₹1 (~$0.012)/MWh.</p>
<p>The contracts will be settled in cash, with the amount based on the volume-weighted average of the unconstrained market-clearing price at the Indian Energy Exchange’s Day-ahead market. This will cover all days of the expiry month.</p>
<p>MCX stated that the contract will adhere to SEBI’s daily price limits for market stability. Its initial price slab will be 6% and can be extended to 9%. The contract will have a minimum 10% initial margin requirement or a volatility’ value at risk’ margin, whichever is higher.  The client-level position limits will be capped at 300,000 MWh or 5% of the market-wide open interest, whichever is greater.</p>


MCX to Start Electricity Futures Trading from July 10, 2025


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					</table><p>The Tamil Nadu Electricity Regulatory Commission (<a href="https://www.tnerc.tn.gov.in/website/" target="_blank" rel="noopener">TNERC</a>) has increased the retail supply tariff for commercial and industrial consumers by approximately 3.16%.</p>
<p>The tariff revision will take effect from July 1, 2025.</p>
<p>The tariff increase is part of the multi-year tariff framework introduced in 2022, which allows for inflation-indexed annual revisions capped at 6%.</p>
<p>The tariff for industrial category consumers has been increased by 3.4% to ₹7.5 (~$0.087)/kWh in FY 2026 from ₹7.25 (~$0.084)/kWh. Demand charges have increased to ₹608 (~$7.09)/kVA/month from ₹589 (~$6.8)/kVA/month.</p>
<p>The commercial category consumers also witnessed a 3.3% growth in the FY 2026 tariff to ₹9.4 (~$0.109)/kWh from ₹9.1 (~$0.106)/kWh in FY 2025. Demand charges have increased to ₹608 (~$7.09)/)/kVA/month from ₹589 (~$6.8)/kVA/month.<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/TNERC-tariff.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81548 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/TNERC-tariff.png" alt="" width="716" height="195" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/TNERC-tariff.png 716w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/TNERC-tariff-300x82.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/TNERC-tariff-650x177.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/TNERC-tariff-624x170.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/TNERC-tariff-600x163.png 600w" sizes="(max-width: 716px) 100vw, 716px" /></a></p>
<p>The tariff for domestic consumers was hiked within the range of ₹4.95 (~$0.057)/kWh and ₹12.15 (~$0.141)/kWh. However, the government will absorb the hike. This effectively means that domestic consumers will continue to pay the existing tariff. The state government will compensate the Tamil Nadu Power Distribution Corporation for the revenue loss by providing an additional subsidy.</p>
<p>However, the following  consumer categories are also exempted from the tariff increase for one year:</p>
<ul>
<li>Cottage and tiny industries, power loom industries</li>
<li>Industries up to 50 kW</li>
<li>Miscellaneous/general purpose consumers for consumption up to 500 units bimonthly</li>
</ul>
<p>Wheeling charges have been set at ₹1.04 (~$0.012)/kWh for high-tension consumers and ₹1.6 (~$0.018)/kWh for low-tension consumers.</p>
<p>A cross-subsidy surcharge of ₹1.99 (~$0.023)/kWh has set for industrial consumers and ₹2.57 (~$0.03)/kWh for commercial consumers.</p>
<p>All HT consumers, except HT-IIA (Lift irrigation), HT-IV, and HT-V (EV Charging station), will be billed an additional 25% for FY 2023-2027 on energy charges recorded during peak hours.</p>
<p>There will also be a 5% rebate on energy charges consumed between 10 PM and 5 PM as an incentive for night consumption.</p>
<p>Consumers under HT Tariff I, II(A), II(B), III, and V who request a Green Energy Consumption certificate will be charged at 110% of the approved tariff for the respective category.</p>
<p><strong>EV Charging Stations</strong></p>
<p>Demand charges for high-tension electricity to support EV charging stations have been reduced by 50% to ₹145 (~$1.69)/kVA/month from ₹304 (~$3.54)/kVA/month.</p>
<p>The energy charges applicable for EV charging stations have been revised as follows:</p>
<ul>
<li>6:00 to 9:00 and 18:00 to 22:00- ₹9.75 (~$0.113)/kWh 9:00 to16:00- ₹6.5 (~$0.075)/kWh 16:00 to 18:00 and 22:00 to 6:00- ₹8.1 (~$0.094)/kWh If EV charging stations under low-tension electricity connection avail power from 06:00 to 09:00 and 18:00 to 22:00, and up to 50 kW, the energy charges have increased to ₹9.75 (~$0.113)/kWh from ₹9.45 (~$0.110)/kWh The fixed charges have also risen to ₹55 (~$0.64)/kWh/month from ₹26 (~$0.3)/kW/month.</li>
</ul>
<p>V charging stations under low tension electricity connection availing power from 09.00 to 16.00, and above 50-112 kW, will be billed at  ₹6.5 (~$0.07)/kWh. The fixed charges have been  increased to ₹165 (~$1.92)/kWh/month from ₹79 (~$0.92)/kW/month.</p>
<p>EV charging stations under low tension electricity connection availing power from 16:00 to 18:00 and 22.00 to 06.00, and above 112 kW, will be billed at ₹8.1 (~$0.09)/kWh. The fixed charges have gone up to ₹304 (~$3.54)/kWh/month from ₹145 (~$1.69)/kW/month.</p>
<p>In December 2024, the Tamil Nadu Electricity Regulatory Commission <a href="https://www.mercomindia.com/additional-surcharge-nadu-increased-to-%E2%82%B90-54-kwh" target="_blank" rel="noopener">issued</a> an order setting the additional surcharge for open access consumers at ₹0.54 (~$0.0063)/kWh, effective from December 12, 2024, until March 31, 2025.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>


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