HSA | Projects, Energy & Infrastructure Monthly Newsletter – April & May 2026

The Ministry of Power (MoP) has issued directions to Imported Coal-Based Generating Companies under Section 11 of the Electricity Act, 2003 on March 27, 2026

• The Ministry of Power (MoP), Government of India on March 27, 2026 has issued directions to Imported Coal-Based Generating Companies under Section 11 of the Electricity Act, 2003, considering the prevailing demand–supply scenario and the anticipated increase in electricity demand in the coming months, has undertaken various measures to ensure adequate availability of electricity across the country.
• The key directions issued are provided below:
  • The Imported Coal - Based power plant of Coastal Gujarat Power Ltd. (CGPL) shall operate and generate power to their full capacity.
  • A Committee comprising representatives from MoP, Central Electricity Authority (CEA), and National Thermal Power Corporation (NTPC) shall determine the benchmark tariff for supply of power, ensuring coverage of prudent costs including coal price, transportation, and operational expenses, along with a reasonable margin.
  • The fixed charges shall continue to be governed by the provisions of the existing PPAs or as has agreed mutually between the generating company and the procurers.
  • The PPA holders shall have the option to procure power either at the benchmark rate determined by the Committee or at a mutually negotiated rate with the generating company.
  • The generated power, in the first instance will be supplied to the PPA holders. Any surplus power shall be sold through power exchanges.
  • In cases where a DISCOM does not schedule its allocated power according to PPA, such power shall be offered to other PPA holders, and any remaining power shall be sold on the power exchanges.
  • Where a DISCOM is not able to enter mutually negotiated rates with the generating company and is not willing to procure power at the benchmark rate, or fails to make timely payments, the generator shall be entitled to sell such power in the power exchanges.
  • PPA holder, who does not wish to requisition power, it shall inform the Imported Coal-Based (ICB) plant at least three days in advance for a minimum period of one week. In case of failure to give such intimation, the ICB plant may sell power to other distribution licensees. During such period, the PPA holder shall not be liable to pay fixed charges and shall not be entitled to requisition power.
  • Where power is not scheduled by the procurer, the generator shall bid power in the power exchange at the tariff determined by the Committee or mutually agreed tariff. The bid shall be cleared on the Market Clearing Price (MCP) discovered in the power exchange. The generator shall not be bound to sell where the MCP is lower than such tariff, but shall mandatorily sell where the MCP is higher.
  • The net profit arising from the sale of power in exchanges (in lieu of supply to PPA holders) shall be shared between the generator and procurers in the ratio of 50:50 on a monthly basis.
  • Payment security mechanisms, including maintenance of Letter of Credit (LC), shall be strictly enforced. In the absence of LC or advance payment, the generator shall not be obligated to supply power and may sell it on exchanges.
  • Payments by procurers shall be made on a weekly basis, in accordance with rebates as per Central Electricity Regulatory Commission (CERC) norms or PPA provisions, whichever is higher, shall be applicable.
  • The generator shall maintain adequate coal stock as per prescribed norms to ensure continuous operation at full capacity.
  • Weekly reports of generation and sale of power shall be submitted by the generator to the Ministry of Power.
  • No penalties shall be imposed on generators for availability under PPA while operating under these directions.
  • Outstanding dues of generators shall not affect compliance with these directions and shall be addressed separately.
  • The Energy Charge Rate (ECR) shall be determined based on the lowest of cost of coal based on the index linked with the lower cost of imported coal; cost of coal minus mining profit; or actual ECR based on the price of imported coal provided by the seller.
  • Where coal is sourced from the country in which the coal mine owned by the seller or its group company is located, the mining profit shall be calculated based on the index used for imported coal from such country and shall be deducted by the generating company.
  • Non-compliance with these directions may attract penalties under the Electricity Act, 2003.
  • The benchmark tariff shall be reviewed every 15 days by the Committee, considering fluctuations in coal prices and associated costs.
• The MoP may extend similar directions to other generating stations, if required, depending on future demand-supply conditions.

Ministry of Power, Government of India, has notified Amendment to General Financial Rules (GFR), 2017 relating to Bid Security and Performance Security on April 7, 2026

• The Ministry of Power (MoP), Government of India, on 07.04.2026, has notified Amendment to General Financial Rules (GFR), 2017 relating to Bid Security and Performance Security.
• MOP as made partial amendment in Rule 170(i) and Rule 171(i) of the GFR, 2017. The amendment has recognised Insurance Surety Bonds (ISBs) as an acceptable alternative to Bank Guarantees (BGs) for Bid Security and Performance Security.
• The amendment made in Rule 170(i) and Rule 171(i) are provided below:
  • Rule 170(i): The bid security may be accepted in the form of Insurance Surety Bonds, Account Payee Demand Draft, Fixed Deposit Receipt, Banker's Cheque or Bank Guarantee from any of the Commercial Banks or payment online in an acceptable form, safeguarding the purchaser's interest in all respects.
  • Rule 171(i): Performance Security may be furnished in the form of Insurance Surety Bonds, Account Payee Demand Draft, Fixed Deposit Receipt from a Commercial bank, Bank Guarantee from a Commercial bank or online payment in an acceptable form safeguarding the purchaser's interest in all respects.

Rajasthan Electricity Regulatory Commission (RERC) issued the Rajasthan Electricity Regulatory Commission (Electricity Supply Code and Connected Matters) (Third Amendment) Regulations, 2026 on March 18, 2026

• The Rajasthan Electricity Regulatory Commission (RERC), in exercise of its powers under Sections 43 to 48, 50, 55 and 56 read with Section 181 of the Electricity Act, 2003, has notified the RERC (Electricity Supply Code and Connected Matters) (Third Amendment) Regulations, 2026 (Regulations).
• The Regulations extend to the entire State of Rajasthan and amend the RERC (Electricity Supply Code and Connected Matters) Regulations, 2021 and apply to distribution licensees, including deemed licensees, and consumers.
• Dual Source Supply:
  • The Regulations introduce a new provision enabling supply of electricity to High Tension (HT) and Extra High Tension (EHT) consumers from dual sources, either for simultaneous use or as a standby arrangement, subject to technical feasibility and compliance with applicable safety regulations. Consumers are permitted to utilise their contracted demand from either source, ranging from zero up to the contracted demand.
• Cost Implications:
  • Applicants opting for dual source supply are required to bear the expenses towards extension of electrical lines and plant for both sources, in addition to the applicable charges specified under the Schedule of Charges (Schedule-I). The Regulations further introduce a proviso under Schedule-I stipulating that consumers applying for dual source supply (whether simultaneous or standby) will be liable to pay twice the plant cost.

Rajasthan Electricity Regulatory Commission (RERC) issued the Rajasthan Electricity Regulatory Commission (Framework for Resource Adequacy) Regulations, 2026 on April 24, 2026

• The Rajasthan Electricity Regulatory Commission (RERC), in exercise of its powers under Section 181 read with Sections 61, 66 and 86 of the Electricity Act, 2003, has notified the RERC (Framework for Resource Adequacy) Regulations, 2026 (Regulations).
• The Regulations establish a comprehensive framework for ensuring resource adequacy by enabling planning of generation and transmission resources to reliably meet projected electricity demand with an optimal generation mix, and apply to generating companies, distribution licensees, State Load Despatch Centre (SLDC), State Transmission Utility and other grid-connected entities and stakeholders in the State of Rajasthan.
• Resource Adequacy Framework:
  • The framework provides for demand assessment and forecasting, generation resource planning, procurement planning, and monitoring and compliance. Distribution licensees are required to prepare Long-Term Distribution Resource Adequacy Plan (10 years), Medium-Term Distribution Resource Adequacy Plan (5 years), and Short-Term Distribution Resource Adequacy Plan (1 year). All the Distribution Licensees of the state shall, by mutual consent, adopt uniform tools, techniques, software, procedures, etc. for preparation of their respective Resource Adequacy Plans.
• Planning and Forecasting:
  • Distribution licensees are required to undertake detailed demand assessment and forecasting using scientific and statistical methodologies, including scenario-based analysis such as most probable, business-as-usual and aggressive scenarios. The forecasting exercise must consider historical demand patterns, consumer category-wise consumption, load profiles, weather and demographic data, and policy and technological developments, and is required to be carried out for long-term, medium term and short-term horizons to determine peak demand and energy requirements.
• Capacity and Procurement Framework:
  • The Regulations provide for detailed generation resource planning based on demand forecasts, existing and planned capacity, and Planning Reserve Margin (PRM), which is prescribed to be not less than 10%. The framework introduces a methodology for determining capacity credit of generation resources based on a net load approach and requires distribution licensees to plan procurement through an optimal mix of long-term, medium-term and short-term arrangements, with indicative ranges of 75-80% long-term and 10-20% medium-term procurement, while ensuring reliability and cost optimisation.
  • The framework emphasises integration of renewable energy sources into the overall resource mix and mandates consideration of storage solutions, including battery energy storage systems and pumped storage projects, to address variability and ensure reliability of supply.
• Monitoring and Compliance:
  • Distribution licensees are required to comply with resource adequacy obligations within specified timelines and maintain data, planning and reporting frameworks in accordance with the Regulations. In case of non compliance, the Commission may impose appropriate non-compliance charges, subject to specified conditions.

RERC issued the Rajasthan Electricity Regulatory Commission (Renewable Purchase Obligation) (First Amendment) Regulations, 2026 on April 24, 2026

• The Rajasthan Electricity Regulatory Commission (RERC), in exercise of its powers under Section 181 read with Sections 61, 66 and 86 of the Electricity Act, 2003, has notified the RERC (Framework for Resource Adequacy) Regulations, 2026 (Regulations).
• The RERC, in exercise of its powers under Section 86(1)(e) read with Section 181 of the Electricity Act, 2003, has notified the RERC (Renewable Purchase Obligation) (First Amendment) Regulations, 2026 (Regulations), which amend the RERC (Renewable Purchase Obligations) Regulations, 2023 and shall come into force from April 1, 2026.
• Introduction of Distributed Renewable Energy:
  • The Regulations introduce the concept of distributed renewable energy, defined as renewable energy generated from projects not exceeding 10 MW, including solar installations under various configurations such as net metering, gross metering, virtual net metering, group net metering and behind-the-meter systems, along with other renewable energy sources as notified by the Central Government. Compliance with distributed renewable energy obligations is to be assessed in energy terms, with provision for conversion of installed capacity into energy where generation data is not available.
• RPO Targets and Compliance Framework:
  • The Regulations revise Renewable Purchase Obligation (RPO) targets for FY 2024-25 and FY 2025-26 and introduce a trajectory of RPO targets for distribution licensees from FY 2026-27 to FY 2029-30, with a structured break-up across wind, hydro, distributed renewable energy and other renewable energy components. The framework provides that obligations under wind, hydro and other renewable energy components are fungible, while distributed renewable energy obligations are non-fungible, although surplus distributed renewable energy may be utilised to meet other obligations. The Regulations further clarify that RPO shall be computed based on electricity supplied to consumers and exclude electricity consumed from nuclear power sources.
• Alignment with Energy Conservation Act Framework:
  • The Regulations align RPO compliance with the Renewable Consumption Obligation (RCO) framework under the Energy Conservation Act, 2001 for designated consumers for FY 2024-25 and FY 2025-26, and provide that no parallel RPO compliance or enforcement shall apply to such consumers to the extent of compliance under the central framework. From FY 2026-27 onwards, designated consumers shall be governed by the central framework, while RPO obligations under these Regulations shall continue to apply to other obligated entities, with the Central Government framework prevailing in case of any inconsistency.

Delhi Electricity Regulatory Commission (DERC) issued Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) (Second Amendment) Regulations, 2026 on April 30, 2026

• The Delhi Electricity Regulatory Commission (DERC), in exercise of its powers conferred under Section 181 read with Section 61 and Section 86(1)(b) of the Electricity Act, 2003, has notified the DERC (Terms and Conditions for Determination of Tariff) (Second Amendment) Regulations, 2026 (Regulations).
• The Regulations amend the Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2017 (Principal Regulations).
• Short Title and Commencement:
  • These Regulations shall be called the Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) (Second Amendment) Regulations, 2026. The Regulations shall be applicable from 1st June 2026, corresponding to the Power Procurement by the Distribution Companies (DISCOMs) from 1st April 2026 onwards.
• Amendment to Regulation 134- Fuel and Power Purchase Adjustment Surcharge (FPPAS):
  • Regulation 134 of the Principal Regulations has been substituted in its entirety. The substituted Regulation 134 governs the Fuel and Power Purchase Adjustment Surcharge (FPPAS), which is defined as the change in cost of power supplied to consumers due to change in fuel cost, power purchase cost and transmission charges, with reference to the cost of supply approved by the Commission. The key provisions of the substituted Regulation 134 are as under:
• Billing Mechanism:
  • FPPAS shall be calculated and billed to consumers automatically, on a monthly basis, without going through the regulatory approval process, according to the formula prescribed by the Commission. The surcharge shall be subject to true-up on an annual basis. FPPAS shall be computed and charged by the Distribution Licensee in the (n+2)th month, on the basis of actual variation in cost of fuel and power purchase and Interstate/Intrastate Transmission Charges for the power procured during the nth month.
• Forfeiture and Carrying Cost Provisions:
  • In case of positive FPPAS, if the Distribution Licensee fails to compute and charge the surcharge in full within the prescribed timeline (except in cases of force majeure), its right to recovery of costs on account of FPPAS shall be forfeited, including the right to recover the same at the time of true-up. In case of negative FPPAS, failure to compute and refund the surcharge in full within the prescribed timeline (except in cases of force majeure) shall render such FPPAS recoverable from the licensee at the time of true-up along with carrying cost at 1.20 times the carrying cost rate under these Regulations, to be adjusted from the revenue available towards Annual Revenue Requirement (ARR).
• Capping of FPPAS:
  • The percentage increase on account of FPPAS shall be applied as a surcharge on the total of Energy Charges and Fixed Charges billed to a consumer and shall be capped at 10% of the total Energy Charges and Fixed Charges. The Commission may periodically review and revise this cap considering the effect of carrying cost and other regulatory aspects. FPPAS claims exceeding the 10% ceiling shall be carried forward and adjusted by the Distribution Licensee in subsequent months within the same financial year, subject to the prescribed ceiling. 
• True-up, Reporting and Compliance:
  • The revenue recovered on account of FPPAS shall be trued up for the year concerned. Any amount billed in excess of the admissible FPPAS shall be recovered from the Distribution Licensee at the time of true-up along with carrying cost at 1.20 times the carrying cost rate, adjusted from the revenue available towards ARR. Under-recovery of FPPAS shall be allowed at the time of true-up The Distribution Licensee shall submit detailed computations and supporting documents to the Commission, both at the time of true-up and through monthly submissions, in formats as specified by the Commission from time to time. A Statutory Auditor’s certificate on a quarterly basis, accompanied by an affidavit signed by a senior officer of the Distribution Company, shall also be furnished to the Commission. All FPPAS details shall be published and archived by the Distribution Licensee on its website through a dedicated web address.
• Transitional Provisions:
  • FPPAS being claimed by the DISCOMs on the basis of the Tariff Order dated 30.09.2021 for the financial year 2021-22 shall not be claimed with effect from the date of applicability of these Regulations. For the intervening period, i.e., after the expiry of the period covered by the last order passed by the Commission for Power Purchase Adjustment Charge (PPAC) (FPPAS) and before the applicability of these Regulations, the DISCOMs shall be allowed to recover PPAC (FPPAS) at the rates approved by the Commission in its last order for PPAC, irrespective of the rates applicable for the relevant quarter under Clause 30 of the existing Business Plan Regulations, 2023. The approved intervening period rates are: TPDDL - 7.24%; BRPL - 5.76%; BYPL - 2.96%; and NDMC - 8.75%.
• Deletion of Regulations 135 and 136:
  • Regulations 135 and 136 of the Principal Regulations have been deleted.

Delhi Electricity Regulatory Commission (DERC) issued Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) (Second Amendment) Regulations, 2026 on April 30, 2026

• The Delhi Electricity Regulatory Commission (DERC), in exercise of its powers conferred under Section 181 read with Section 61 and Section 86(1)(b) of the Electricity Act, 2003, has notified the DERC (Business Plan) (First Amendment) Regulations, 2026 (Regulations).
• The Regulations amend the Delhi Electricity Regulatory Commission (Business Plan) Regulations, 2023, extended up to 2026-27 (Principal Regulations).
• Short Title and Commencement:
  • These Regulations shall be called the Delhi Electricity Regulatory Commission (Business Plan) (First Amendment) Regulations, 2026. The Regulations shall be applicable from 01st June 2026, corresponding to the Power Procurement by the Distribution Companies (DISCOMs) from April 1, 2026 onwards.
• Amendment to Regulation 30:
  • Regulation 30 of the Principal Regulations has been deleted. The Fuel and Power Purchase Adjustment Surcharge (FPPAS) shall henceforth be governed by Regulation -134 of the DERC (Terms and Conditions for Determination of Tariff) (Second Amendment) Regulations, 2026.

Rajasthan Electricity Regulatory Commission (RERC) notified the Rajasthan Electricity Regulatory Commission (Battery Energy Storage Systems) Regulations, 2026 on May 13, 2026

• The Rajasthan Electricity Regulatory Commission (RERC), in exercise of the powers conferred on it under Section 61, Section 86 read with Section 181 of the Electricity Act, 2003, has notified the RERC (Battery Energy Storage Systems) Regulations, 2026 (Regulations), effective from the date of publication in the Official Gazette.
• The Regulations apply to all Licensees, the State Transmission Utility (STU), State Load Despatch Centre (SLDC), Generating Companies, Renewable Energy Developers, Aggregators, Battery Energy Storage System (BESS) Service Providers, Consumers/Prosumers, and all other entities involved in the planning, procurement, deployment, operation, or utilisation of Battery Energy Storage Systems within the State of Rajasthan.
• Ownership and Business Models:
  • BESS may be developed, owned, leased, or operated by Distribution Licensees, Transmission Licensees, Generating Companies, Independent Power Procurers (IPPs), Independent BESS Service Providers, Standalone BESS Developers, Renewable Energy Developers, Aggregators, Consumers/Prosumers, or any third-party investors. BESS may be deployed as co-located with generators, grid-connected standalone storage, embedded in distribution or transmission networks, behind the meter, or integrated with Electric Vehicle infrastructure for Vehicle-to-Grid (V2G) services. Standalone BESS and non-co-located BESS scheduled as a separate storage element shall comply with scheduling, metering, telemetry, and dispatch requirements under the applicable Grid Code and SLDC procedures, with deviations settled as per applicable CERC Regulations mutatis mutandis. The BESS shall carry the same legal status as that of its owner.
• Planning and Procurement:
  • Distribution Licensees and the STU, in consultation with SLDC, shall plan energy storage capacity within their respective areas, aligned with the State’s Renewable Energy Policy, Energy Storage Targets, and State Transmission Plan. The STU shall prepare a consolidated intra-state storage plan, including recommended locations and voltage levels, and share it with all relevant entities. The minimum individual project size shall be 1 MW or above with an energy rating of at least two hours, connected at 11 kV or above. This minimum does not apply to BESS at the Distribution Transformer level or for behind-the-meter consumer applications. For BESS co-located with existing generating stations, the minimum energy rating may be reduced to less than two hours where the primary application is ancillary services or frequency regulation, subject to approval of the storage plan by STU, DISCOM, and SLDC. All procurement of BESS capacity or services by Licensees shall be through transparent competitive bidding in accordance with Central Government guidelines.
• Ancillary Services and Market Participation:
  • BESS shall be eligible to provide ancillary services including frequency regulation, spinning reserves, voltage support, black start services, and demand response. BESS may provide multiple services concurrently or sequentially, with revenues and obligations accounted for separately to prevent double recovery. Where a conflict arises between contracted commitments and real -time grid security, SLDC instructions shall prevail. Aggregators may aggregate BESS resources from multiple sites to provide services to the SLDC, Licensees, or other market participants, subject to registration and protocols specified by the SLDC. BESS participating in ancillary services shall be required to meet prescribed response times, maintain communication and telemetry infrastructure enabling real-time data transmission to SLDC, possess the capability to receive and respond to Automatic Generation Control (AGC) signals where applicable, and comply with metering arrangements as specified by SLDC. Applications for registration shall be disposed of within thirty days, extendable by a further thirty days.
• Tariff Framework:
  • All Licensee procurement of BESS capacity or services shall be through tariff - based competitive bidding. Bid documents shall explicitly specify commercial and operational responsibility for charging energy, losses, round-trip efficiency, battery parameters, metering, scheduling, and settlement. Any deviations from bidding guidelines shall require prior approval of the Commission. For ancillary services, the Commission may approve a single-part or multi-part tariff structure, including capacity charges, variable energy charges, and performance-linked payments. The Commission may also consider pay-for -performance and cap-and-floor tariff frameworks. Renewable energy used to charge BESS shall retain its renewable character upon discharge, and obligated entities shall be eligible to claim RPO/RCO benefits for such discharged energy.
• Consumers/Prosumers:
  • All consumers and prosumers may install behind-the -meter BESS up to their contract demand, with or without solar power plants, subject only to online registration with the Distribution Licensee, no separate permission or connection agreement is required. Where BESS is installed in hybrid mode with a solar plant under Net Metering, Net Billing, Group Net Metering, or Virtual Net Metering, the hybrid system shall be governed by the RERC (Grid Interactive Distributed Renewable Energy Generating Systems) Regulations, 2021. Consumers/prosumers may participate in energy arbitrage and demand response programmes, directly or through an Aggregator. Distribution Licensees shall develop Vehicle-to-Grid and Grid-to-Vehicle programmes through smart chargers. Energy injected into the Distribution Licensee’s network during non -solar peak hours shall be payable at an incentivised tariff as may be specified by the Commission.
• Role of SLDC and Technical Standards:
  • The SLDC is designated as the Nodal Agency for ancillary services at the intra-state level. It shall publish eligibility criteria for BESS ancillary service providers within three months, and prepare procedures for scheduling, metering, accounting, and settlement within six months, of the notification date. BESS installations shall conform to technical standards specified by the CEA and MNRE. Cyber security protocols shall adhere to MeitY and CEA guidelines. Decommissioning and disposal of batteries shall comply with the Battery Waste Management Rules, 2022, including Extended Producer Responsibility provisions. The SLDC shall also monitor the performance of BESS, including State of Charge (SoC), Round -Trip Efficiency, and availability, and shall prepare a standard agreement format for procuring ancillary services subject to prior approval of the Commission.
• Dispute Resolution and Savings:
  • Consumer disputes shall be dealt with under the RERC (Consumer Grievance Redressal Forum, Electricity Ombudsman and Consumer Advocacy) Regulations, 2021. All other disputes shall be referred to the State Power Committee, which shall endeavour to resolve them within 30 days, failing which the matter shall be referred to the Commission, whose decision shall be final and binding. Existing PPAs, Energy Storage Service Agreements, and procurement processes initiated prior to the notification shall continue under their respective terms. BESS projects that have achieved financial closure or commenced construction prior to notification shall be deemed to comply with the minimum project size requirements. Existing registrations of Aggregators and AS providers shall remain valid subject to re-registration under the SLDC procedure.

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