CERC Revises Deviation Charges for Infirm Power Under New 2025 Amendment

Introduction

The Central Electricity Regulatory Commission (CERC) has implemented significant regulatory modifications through the Second Amendment to the Deviation Settlement Mechanism and Related Matters Regulations, 2024¹. This comprehensive amendment, officially notified on June 25, 2025, and taking effect from July 1, 2025, fundamentally transforms the management and financial treatment of infirm power injection into India’s national grid infrastructure. The amendment addresses critical operational challenges faced by power generating stations during their commissioning phases while maintaining overall grid stability and discipline.

Explanation (Key Points)

The amendment establishes a comprehensive framework for infirm power management that primarily centers on a zero-charge principle for grid injection while incorporating specific exceptions and conditions that accommodate various operational scenarios. Under the general provisions, charges for injecting infirm power into the grid are set at zero, creating a supportive regulatory environment for new power plants during their critical commissioning periods when technical testing and stabilization are essential.

For thermal generating stations, the regulations provide detailed considerations during the commissioning period, recognizing the unique operational requirements of these facilities. When thermal plants inject infirm power from the date of first synchronization of a unit until the successful completion of their trial run, they receive compensation at normal deviation charge rates, though this payment is strategically capped at ₹2.86 per kilowatt-hour for each time block. This provision acknowledges the necessity of extensive testing and system stabilization that thermal units require during their initial operational phases, while providing appropriate financial support without creating excessive grid cost burdens.

The amendment introduces critical distinctions for situations involving scheduled infirm power after successful completion of trial runs, as defined in the Grid Code. When infirm power is scheduled post-trial run completion and deviations occur from this scheduled amount, the applicable charges align with those established for general sellers or Wind and Solar (WS) sellers, depending on the specific case circumstances. This approach maintains grid discipline by ensuring that operational facilities are held to appropriate deviation standards while providing necessary flexibility during critical commissioning phases.

Frequency-based provisions represent another sophisticated aspect of the amendment, incorporating real-time grid conditions into the charging mechanism.

When system frequency exceeds 50.05 Hz, no charges apply for infirm power injection or deviations due to over-injection, applicable to both general sellers and WS sellers after successful trial runs. This frequency-sensitive approach helps maintain grid stability by avoiding penalization during high-frequency conditions when additional power injection could actually worsen grid stability.

The regulatory framework addresses various technical scenarios that may arise during power plant operations, including situations where different types of generating stations operate under varying grid conditions. The amendment ensures that the charging mechanism remains responsive to actual grid requirements while providing appropriate incentives for proper grid operation and stability maintenance.

The evolution of these regulations reflects CERC’s ongoing commitment to refining India’s deviation settlement mechanism, which began with the original regulations issued in August 2024 and subsequently saw its first amendment implemented in December 2024. This second amendment continues the progressive development of the regulatory framework, incorporating operational experience and stakeholder feedback to create more nuanced and effective grid management mechanisms.

Conclusion

The amendment provides a structured framework that balances support for new generating stations during commissioning with the imperative of maintaining grid stability and operational discipline. Through its implementation of zero charges for general infirm power injection, compensated testing periods for thermal stations, and frequency-sensitive provisions, the regulation creates an environment that supports power sector development while preserving grid reliability standards.