CERC Rejects Wind-Only Classification For 160 MW Blended Wind-Solar Project In Karnataka

The Central Electricity Regulatory Commission (CERC) has dismissed a petition filed by Vena Energy Vidyuth Private Limited (VEVPL), seeking special regulatory classification for its 160 MW blended wind-solar power project in Karnataka. The company had requested the Commission to treat the project exclusively as a wind-based generating station for calculating deviation penalties under the CERC Deviation Settlement Mechanism (DSM) Regulations, 2024. However, the regulator ruled that the project must continue to be classified as a hybrid generating station under the existing regulatory framework.

The order was issued on November 2, 2026, by a CERC bench comprising Chairperson Jishnu Barua and Members Ramesh Babu V., Harish Dudani and Ravinder Singh Dhillon.

VEVPL developed the 160 MW project in Koppal district of Karnataka, comprising 129.6 MW of wind capacity and 30.4 MW of solar capacity. Wind accounts for 81% of the project’s total installed capacity, while solar contributes the remaining 19%. The project achieved commercial operation on October 29, 2024, under a Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI).

The project was developed under the Ministry of New and Renewable Energy’s (MNRE) 2020 Blended Wind Guidelines, which permitted developers to combine wind and solar capacities, subject to a minimum wind component of 80% and a maximum solar component of 20%.

The dispute arose after the Southern Regional Power Committee (SRPC) and Southern Regional Load Despatch Centre (SRLDC) classified the facility as a hybrid generating station under the DSM Regulations, 2024. This classification subjected the project to tighter deviation limits compared with standalone wind generating stations. Hybrid projects were initially permitted deviations of up to 10%, which were reduced to 5% from April 2026. In comparison, standalone wind projects were allowed deviations of up to 15%, subsequently reduced to 10%.

VEVPL argued that its project should receive the same regulatory treatment as a wind-based generating station because wind contributes more than four-fifths of its installed capacity. The company maintained that its generation profile was predominantly influenced by wind variability and that applying hybrid project deviation limits resulted in financial losses.

According to the petitioner, the existing classification had caused revenue losses of approximately 5.3% due to deviation penalties. It therefore requested CERC to exercise its regulatory powers to relax the applicable provisions and recognise the facility as a wind generating station.

However, SRPC and SRLDC opposed the request, stating that the DSM Regulations, 2024, do not establish a separate regulatory category for blended wind projects. They argued that generating facilities combining multiple renewable energy sources and injecting electricity through a single grid connection point must be classified as hybrid generating stations.

In its order, CERC observed that classification under MNRE’s blended wind guidelines does not automatically determine regulatory treatment under the DSM framework. The Commission also noted that the developer had opted to include solar capacity when it could have established a completely wind-based project.

The regulator concluded that granting the requested exemption would effectively introduce a new classification threshold outside the existing regulations. Accordingly, CERC dismissed VEVPL’s request and formally disposed of the petition, retaining the project’s hybrid generating station classification for DSM compliance.