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Renewable and power ministries to tackle green curbs and grid penalties threatening project viability
Economy
Published on 14 May 2026
Grid penalties could hit renewables even when forecasts miss
Renewable energy minister Pralhad Joshi said the renewable energy and power ministries will meet on Wednesday to address industry complaints over two pressure points: the deviation settlement mechanism and curtailment of green power. He said stricter grid compliance rules have raised viability concerns for renewable projects, with the government already holding several rounds of talks. The deviation settlement mechanism can impose grid penalties when actual supply or demand diverges from scheduled forecasts, adding uncertainty for developers and distributors.
- Ministries will meet Wednesday to discuss green power curtailment
- They will also review the deviation settlement mechanism
- Stricter grid compliance norms are hurting renewable project viability
- Deviation settlement can trigger grid penalties for forecast mismatches
- The discussion includes transmission infrastructure concerns
- Joshi said talks are ongoing and won’t end quickly
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times