ENCO Legal | Energy & Electricity Law | 2 November 2026
Quick answer
CERC’s proposed Regulation 25A would permit scheduling of infirm power only after successful trial-run certification. Existing PPA provisions take priority. Where a contract is silent, the contracted buyer receives at least seven days’ notice; non-response is treated as refusal, potentially allowing third-party sale subject to other rules. This is a draft proposal, not an unconditional existing permission.
What is infirm power?
Infirm power is electricity generated before commercial operation as treated under the applicable Grid Code. Physical generation does not itself establish a legal right to schedule or sell electricity.
Successful trial run and COD
Proposed Regulation 25A conditions scheduling on a successful trial-run certificate under Regulation 25. Regulatory commercial operation and contractual commencement of supply can involve different conditions. Developers should check trial-run certificates, RLDC communications, connectivity and GNA status, PPA milestones and financing definitions.
Existing PPA terms take priority
If a PPA or intermediary power-sale contract specifically addresses pre-COD electricity, the draft gives those terms priority. A general COD clause should not automatically be assumed to resolve ownership, price or scheduling of pre-COD power.
Seven-day first offer to the buyer
Where the contract does not specifically address pre-COD sale, the proposal requires offering electricity first to the contracted buyer with at least seven days’ notice. If the buyer consents, the tariff is mutually agreed. The proposal does not automatically impose the final PPA tariff.
What if the buyer does not respond?
Under the draft, non-response during the notice period is deemed refusal, not consent. The generating station could then sell outside the contract to a third party, while complying with other market-access, scheduling and contractual requirements. This does not guarantee market revenue.
Unresolved tariff and BESS questions
The draft does not clearly settle a case where the buyer responds positively but the parties cannot agree on price. It refers to ESS in parts but uses generating-station wording in the third-party-sale provision. CERC could clarify how standalone storage and unsuccessful tariff negotiations are handled.
Legal and financial risks
Developers risk disputes from premature third-party sale, defective notices, missing certification, and conflicting definitions of regulatory COD and contractual supply commencement. DISCOMs and intermediaries should establish documented response processes. Lenders should examine revenue-start and completion milestones.
Practical remedy and compliance checklist
First confirm trial-run and scheduling status. Then review the PPA and intermediary chain, preserve written offers and proof of delivery, and identify whether the dispute concerns regulatory scheduling, price or contract interpretation. Select the applicable regulatory or contractual forum only after examining jurisdiction and dispute-resolution clauses.
Public consultation
CERC’s notice extended the comment deadline to 2 November 2026 and listed a public hearing for 4 November 2026 at 10:30 AM. Stakeholders should check the latest official status before submitting.
Frequently asked questions
Can solar power be sold before COD? Only subject to the operative regulations, certification, scheduling and contracts. Is Regulation 25A in force? It is proposed in the September 2026 draft. Is a successful trial run required under the proposal? Yes. Does silence mean buyer consent? No, it is deemed refusal under the draft. Is the tariff fixed? The proposed default mechanism calls for mutual agreement. Does it guarantee merchant revenue? No. Does it cover BESS? ESS is referenced, but some wording merits clarification.
Official sources
CERC draft: https://www.cercind.gov.in/2026/draft_reg/DR_IEGC-2ndAmnd.pdf ; Explanatory memorandum: https://www.cercind.gov.in/2026/draft_reg/EM_IEGC-2ndAmnd.pdf ; Extension notice: https://www.cercind.gov.in/2026/draft_reg/PN_IEGC-2ndAmnd-Ext-letr.pdf ; Existing legal framework: Electricity Act 2003, CERC Indian Electricity Grid Code Regulations 2023 as amended, applicable GNA regulations and contracts.
Disclaimer
This article is general legal information, not advice for a specific project or an invitation to engage legal services. Regulatory and contractual outcomes depend on facts and applicable law. No outcome is guaranteed.