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CERC Proposes Grid Code Changes to Tighten Congestion Charges, ESS Trials and Scheduling

Central Electricity Regulatory Commission has proposed an amendment to the Indian Electricity Grid Code Regulations, including 50 MW minimum trial runs for standalone ESS, 25 MW connectivity threshold for PSPs, 10 MW threshold for standalone ESS, a new congestion-charge mechanism and 5 percent monthly reduction in access for payment defaults.

September 24, 2026. By Mrinmoy Dey

The Central Electricity Regulatory Commission (CERC) has proposed tighter grid operating rules covering congestion charges, energy storage system (ESS) and pumped storage plant (PSP) trials, infirm power scheduling, payment defaults and thermal unit scheduling.

The second amendment to the Indian Electricity Grid Code (IEGC) Regulations, 2023, dated September 21, 2026, also proposes shorter schedule-revision timelines, with the second phase taking effect from April 1, 2027.

The draft introduces a new congestion-charge mechanism, with charges on entities causing transmission congestion and payments to those relieving it. It also sets minimum trial-run requirements for standalone ESS, revises PSP trial and commercial operation provisions, and tightens scheduling and access rules for entities defaulting on statutory charges.

For standalone ESS, CERC has proposed trial runs for a minimum aggregate capacity of 50 MW. Projects above 50 MW and below 250 MW could conduct the balance trial run in up to three instalments, with each instalment of at least 5 MW. Projects of 250 MW and above could conduct trial runs in instalments of at least 50 MW without a limit on the number of instalments. Similar instalment-based trial runs are proposed for generating projects of 250 MW and above.

For PSPs, short interruptions or load reductions during trial runs would be permitted with a corresponding increase in test duration. Average load would have to remain at least at the minimum continuous rating, excluding the interruption period but including the extended duration. A cumulative interruption exceeding four hours across pumping and turbo-generator modes would require the trial run to be repeated. Where reservoir levels are inadequate to demonstrate design capability, commercial operation could be declared subject to demonstrating the capability once adequate water levels are available.

CERC has proposed a framework for scheduling infirm power only after successful completion of the trial run. Where contracts specify treatment of power sold before commercial operation, those provisions would apply. Otherwise, power would first be offered to contracted buyers with at least seven days' notice. If buyers consent, it could be scheduled at a mutually agreed tariff; if they do not respond, the generator could sell the power to a third party.

The draft also proposes a separate commercial operation framework for PSPs. COD of an individual unit would be based on a successful trial run at MCR or de-rated capacity and submission of the required declaration, while COD of the last unit would be treated as the COD of the entire plant. If rated capacity cannot be demonstrated within one year of COD due to transmission constraints, it could be demonstrated within one year from the effective date of GNA or one year from COD, whichever is later.

PSPs of 25 MW and above would fall under specified connectivity provisions, while standalone ESS of 10 MW and above connected at 33 kV and above would be subject to CEA Technical Standards for Connectivity.

The draft proposes stricter action against entities defaulting on DSM, congestion or reactive energy charges or failing to maintain payment security. T-GNA scheduling for short-term contracts, including power exchanges, would be fully regulated after the specified default trigger. If dues remain unpaid for two months, short-term GNA contracts would also be fully regulated, while access for other contracts would be reduced progressively by 5 percent per month. Access would be restored after dues are cleared or adequate payment security is maintained.

CERC has proposed shortening schedule-revision timelines in two phases. The second phase would reduce the relevant reference from the seventh to the fifth time block and take effect from April 1, 2027.

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