The recent Central Electricity Regulatory Commission’s (CERC) proposal to tighten deviation limits for the scheduling and dispatch of power has raised concerns about higher project costs for renewable developers and potential increases in consumer tariffs. As part of its broader effort to reduce grid instability, CERC has proposed narrowing the tolerance band for the deviation settlement mechanism (DSM) for wind and solar projects starting in 2026. The tighter DSM limits could result in higher deviation charges for renewable projects or force developers to invest more in advanced forecasting and weather-monitoring systems to minimize penalties.