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					</table>The Maharashtra Electricity Regulatory Commission (<a href="https://merc.gov.in/" target="_blank" rel="noopener">MERC</a>) has proposed tightening deviation settlement rules for solar, wind, and wind-solar hybrid projects, gradually shifting toward a schedule-based mechanism that increases the financial consequences of deviations from scheduled generation.
The changes were proposed under the draft MERC (Forecasting, Scheduling and Deviation Settlement for Solar and Wind Generation) (Second Amendment) Regulations, 2026.
MERC said that increasing renewable energy penetration, deployment of solar, wind, and hybrid projects, and the objectives of Maharashtra’s Renewable Energy and Energy Storage Policy necessitate strengthening the forecasting and scheduling framework.
The shift to scheduled generation over available capacity is <a href="https://www.mercomindia.com/cerc-notifies-phased-move-to-schedule-based-deviation-for-wind-solar-under-dsm" target="_blank" rel="noopener">aligned</a> with the Central Electricity Regulatory Commission (CERC) DSM guidelines issued in April 2026.
Schedule-Based Settlement
Under the proposed regulations, existing wind and solar sellers supplying or self-consuming electricity within Maharashtra will eventually be commercially settled based on scheduled generation.
MERC will notify the implementation date separately after considering a readiness report from the State Load Despatch Center (SLDC) by April 1, 2028. The Commission will provide at least three months’ notice.
Deviation for each time block will be calculated on the difference between actual and scheduled generation.
The deviation percentage will be calculated using a combination of available capacity and scheduled generation. The parameter ‘X,’ which determines the weight assigned to available capacity, will progressively decline.
X determines the weighting between available capacity and scheduled generation when calculating a generator’s deviation percentage, progressively shifting entirely to scheduled generation as X falls to zero.
For solar and wind-solar hybrid projects, X will decline from 100% in 2026-27 to 90% in 2027-28, 75% in 2028-29, 55% in 2029-30, and 30% in 2030-31. For wind projects, it will decline from 100% to 95%, 85%, 65%, and 35% over the same period.
From April 1, 2031, X will be zero for all three technologies, making the deviation percentage entirely dependent on scheduled generation rather than available capacity.
The Commission also highlighted that under the new formula for calculating DSM percentage, SLDC must specify how to treat a zero denominator if scheduled generation is zero.
Deviation Charges
The draft regulations propose deviation charges for solar, wind-solar hybrid projects, and renewable energy generating stations within tolerance bands of 5% to 10%. Wind projects will have higher limits of 10% to 15%.
Solar, wind-solar hybrid projects, and renewable energy generating stations over-injecting within the 5% tolerance band will be compensated at 100% of the contract rate. Over-injection between the bands of 5% and up to 10% will receive 90%, while over-injection beyond 10% will receive no payment.
For under-injection, generators will pay 100% of the contract rate up to a deviation within the 5% tolerance band. The charge will rise to 110% for deviation between 5% and 10% and 200% for deviations beyond 10%.
The charges will be calculated incrementally for the energy falling within each band.
Widening DSM Framework
The draft also proposes moving certain new renewable projects to the deviation settlement provisions applicable to general sellers under Maharashtra’s DSM regulations.
Projects awarded through tariff-based competitive bidding will come under the general seller framework if the last date for bid submission is on or after January 1, 2027.
For other projects, the framework will apply if the commercial operation date is on or after January 1, 2029.
Existing wind and solar sellers will continue under the renewable forecasting and deviation settlement regulations, including the phased transition.
The regulations will also apply to projects under the Mukhyamantri Sour Krushi Vahini Yojana and Mukhyamantri Sour Krushi Vahini Yojana 2.0 connected to the intrastate transmission system.
MERC has also proposed applying deviation-charge provisions to REGS connected to distribution networks. However, their treatment will be specified separately based on recommendations from the Grid Coordination Committee, which must submit its recommendations within six months of the regulations being notified.
Contract Rate
The contract rate for deviation settlement will be the tariff determined, adopted, or approved by the Commission, or the price discovered on a power exchange for distribution licensee procurement.
For generators without power purchase agreements with distribution licensees, the applicable contract rate will be the variable cost of the state marginal generating station identified by SLDC for the relevant time block, subject to a ceiling of ₹10 (~$0.11)/kWh.
For multiple power purchase or sale agreements at a pooling substation, the contract rate will be the weighted average based on contracted capacity.
No demand charges will apply where contract demand for auxiliary consumption is up to 1% of installed renewable energy capacity. If the demand exceeds 1% of the installed capacity, demand charges will apply to the total recorded demand for that month at the tariff applicable to high-tension (HT) industrial consumers.
Energy drawn for auxiliary consumption will be charged at the applicable Average Cost of Supply.
Hybrid Projects and De-Pooling
The proposed amendments bring wind-solar hybrid generators and projects with energy storage systems under the framework.
QCAs will settle the net deviation amount with SLDC and de-pool deviations and charges among individual generators at a pooling substation.
They will provide each generator a time-block-wise statement showing the aggregate account, the methodology, inputs, allocation, and reconciliation.
At the end of every month, the QCAs will issue contract-wise credit notes based on scheduled generation or actual generation.
Scheduled generation will be the default de-pooling methodology. However, QCAs and generators can adopt an alternative methodology within six months, with approval from generators representing at least 51% of the installed capacity at the pooling substation.
Alternative methodologies can use available capacity, scheduled generation, actual generation, deviation, or a combination of these parameters.
Pooling substations and standalone generators with installed capacity of 5 MW or more must have special energy meters capable of recording energy in 15-minute time blocks.
SLDC must publish draft amendments to the detailed procedure within 60 days of the regulations&#8217; publication and submit them to MERC for approval within 90 days.
The procedure will cover issues including contract-rate mapping, curtailment and outages, hybrid resources, energy storage operation and metering, de-pooling, reconciliation, and dispute handling.
In another move to improve grid discipline and stability, MERC <a href="https://www.mercomindia.com/maharashtra-revises-energy-banking-rules-in-modified-multi-year-tariff-order" target="_blank" rel="noopener">modified </a>aspects of its multi-year tariff order, revising time-of-day banking rules and rationalizing the rebate structure to better align with regulatory principles and solar consumption patterns.
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