The Tamil Nadu Electricity Regulatory Commission (TNERC) has released a draft notification proposing a new regulatory framework for forecasting, scheduling, and deviation settlement for wind, solar, and hybrid power projects, including projects integrated with Energy Storage Systems (ESS). Issued on May 27, 2026, the proposed “Forecasting, Scheduling and Deviation Settlement and Related Matters for Wind, Solar and Hybrid Generations (with or without ESS) Regulations, 2026” will replace the earlier 2024 regulations once finalized.
The Commission stated that the new draft regulations were prepared following multiple petitions and operational concerns raised by the State Load Despatch Centre (SLDC). The petitions highlighted serious infrastructure-related challenges and practical implementation difficulties under the previous framework. According to the draft, Tamil Nadu’s existing grid structure differs significantly from the assumptions made while framing the 2024 regulations.
The earlier regulations were designed considering that Pooling Sub-Stations (PSS) would be “pure” generation pooling stations connected through dedicated feeders. However, out of the 469 identified PSSs in Tamil Nadu, only 48 match this ideal structure. The remaining 421 stations are mixed-type substations where renewable generation feeders are combined with distribution loads. This has created major complications in data validation, energy accounting, and forecasting processes.
The draft also acknowledged the rapid growth of hybrid renewable energy projects and Energy Storage Systems in the state. TNERC said these developments require a modern and integrated regulatory framework capable of handling new technologies and operational requirements.
To address non-compliance issues seen under the earlier regulations, the Commission has proposed strict penalties for renewable energy generators that fail to appoint a Qualified Co-ordinating Agency (QCA) within the prescribed timelines. Under the new draft, deviation charges will increase to 150 percent for the first 30 days of non-compliance and 200 percent for the next 30 days. If the issue continues beyond 120 days, the generators may face suspension of dispatch facilities or even grid disconnection.
The regulations classify QCAs into three categories, namely State-wide Wind QCAs, State-wide Solar QCAs, and PSS-wise QCAs. In addition, QCAs will now be required to provide standardized service options under Basic, Standard, and Premium categories to ensure transparency and avoid monopolistic pricing practices.
The draft regulations also tighten forecasting discipline by reducing permissible deviation-free bands in line with Central Electricity Regulatory Commission guidelines. The free deviation band for wind projects has been reduced from 15 percent to 10 percent, while for solar projects it has been lowered from 10 percent to 5 percent. Hybrid systems will have a 7 percent free band.
Although the SLDC requested the complete removal of the deviation charge ceiling cap, TNERC decided to retain it temporarily due to the ongoing implementation of Automatic Meter Reading systems. However, the monthly deviation charge ceiling has been increased from 3 paise per unit to 7 paise per unit.
The draft further introduces a detailed definition of “gaming” and proposes penalties at three times the standard deviation rate for intentional schedule mis-declarations. The force majeure provisions have also been expanded to include cyber-attacks, telemetry failures, and SCADA or AMR system breakdowns.
The proposed regulations will apply across Tamil Nadu to all wind, solar, and hybrid generating stations with a capacity of 1 MW and above. TNERC has invited comments, objections, and suggestions from stakeholders and the public until June 11, 2026, before finalizing the regulations for official gazette publication.
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