Indian court pauses stricter power grid penalties for renewable firms

A court in the southern Indian state of Karnataka has temporarily blocked new, tougher penalties for solar and wind power producers for deviating from scheduled grid supply after industry bodies challenged ‌the rules.

Here ⁠are ⁠some details:

India, on March 31, increased penalties for wind and solar generators for deviating from their supply pledges to the power grid.


Until the next hearing, renewable energy companies can continue using the older system for paying charges when ⁠their power ‌generation differs from the schedule given to grid operators, the court order on ⁠Monday, reviewed by Reuters, showed.

The case was filed by the National Solar Energy Federation of India, which argued that new rules issued by the Central Electricity Regulatory Commission (CERC) were introduced without proper public consultation.

Solar and wind power output depends on weather ‌conditions and cannot always be controlled, the petitioners said, unlike coal or gas-based power plants.

The federal ⁠government and power regulator have been asked to respond by June 10.

India aims to build 500 gigawatts of renewable energy capacity by 2030.

Industry groups had previously said stricter regulations could lead to revenue loss and limit investor interest in India's clean energy sector.