The Central Electricity Regulatory Commission (CERC) has scheduled a public hearing on December 3, 2025, at 14:30 Hrs (2:30 PM) via video conference to deliberate on the determination of the value of “X” for computing the percentage of deviation for Wind and Solar (WS) Sellers starting April 1, 2026.
This determination is being carried out under the provisions of the Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2024.
Significance of the ‘X’ Value
The value of “X” is a critical parameter in the formula used to calculate the deviation percentage for Wind and Solar (WS) Sellers under the Deviation Settlement Mechanism (DSM) framework.
The DSM Regulations, 2024, aim to enforce stricter adherence to electricity injection schedules to ensure the reliability, security, and stability of India’s power grid.
Currently, until March 31, 2026, the deviation is computed using Available Capacity in the denominator, essentially setting X at 100 percent. The proposed change is part of a phased transition toward a computation method anchored primarily on scheduled generation (X=0). A decrease in the value of “X” will likely lead to tighter compliance requirements and may increase deviation settlement charges paid by renewable projects.
The public hearing will also address related proposals to narrow the revenue-neutral tolerance band for WS Sellers starting April 1, 2026.
Public Hearing and Submission Details
The CERC invited initial comments on this subject by October 5, 2025, which was later extended to October 17, 2025. The public hearing will involve oral proceedings to gather further input from a wide range of stakeholders, including representatives of Central/State Governments, Load Despatch Centers, State Utilities, Generation Companies, Power Exchanges, and RE Developers/Associations.
To participate, proposed attendees must register on the SAUDAMINI Portal by December 1, 2025. Organizations proposing to make a presentation should limit it to 5-10 minutes (not more than 8-10 slides) and email an advance copy to ecourtastt101@cercind.gov.in and advisor-re@cercind.gov.in by December 1, 2025.