The Commission issued draft third amendment to CERC Deviation Settlement Mechanism and Related Matters) Regulations, 2024 on 26th May, 2026 and sought public comments till 26th June, 2026. The proposed amendments mark a paradigm shift for variable renewables (wind and solar) and will re-define the DSM framework going ahead with the rapidly increase share of renewables. 

We have few suggestions and comments on the draft which are detailed below. 

1. Clarify various aspects which need consideration while aligning new solar, wind and hybrid projects (WS sellers) with general sellers- Tolerance band, option of aggregation, volume limit and charges for deviation; apart from some operational complexities arising due to such alignment.
2. Need to specify trajectory for aligning existing WS sellers with general sellers.
3. Move towards a common, market linked deviation charges for all buyers and sellers, in the long run.
4. Need of a stricter DSM framework for BESS.
5. Improve data reporting for DSM, including standardisation across RPCs, reporting individual level RE plant data, incorporating TRAS instructions in DSM statements and report about revision of schedules.

The detailed comments and suggestions can be found attached on this page.