India: Energy Law

The common requirements for Renewable Energy Power Plants (“REP”) and BESS include equipment rating norms, mandatory site documentation, display boards, WMO-compliant automatic weather stations (for plants of 10 MW and above), phasor measurement units, harmonic analysers, power plant controllers, redundant communication systems, power quality meters, graded protection systems, voltage ride-through capability, and compliance with the National Building Code and applicable noise limits.

The Ministry of New and Renewable Energy (MNRE), Government of India (GoI), vide Office Memorandum (OM) dated 25 May 2026, has proposed a structured One-Time Relief Package (Proposed Relief Package) to address cases where Letters of Award (LoAs) have been issued by Renewable Energy Implementing Agencies (REIAs), acting as Intermediary Procurers, but Power Purchase Agreements (PPAs) and Power Sale Agreements (PSAs) remain unsigned as on 30 April 2026.

The period from April to June 2026 witnessed significant legislative, regulatory, and judicial developments across India's energy, infrastructure, and natural resources sectors. Notable developments included key reforms across power, renewable energy, mining, coal, petroleum, highways, ports, and maritime sectors, alongside measures to strengthen infrastructure delivery, environmental governance, industrial safety, and energy security.

One of the key issues before the Ld. Madhya Pradesh Electricity Regulatory Commission (“MPERC”) was whether MB Power was entitled to gross-up its Return on Equity (“RoE”) notwithstanding the fact that, at the corporate level, it had not paid income tax during certain years owing to losses and unabsorbed depreciation arising from its other businesses. MPPMCL opposed the claim, inter alia, on the grounds that the claim was barred by limitation and that grossing-up could not be permitted in the absence of actual tax payment by the corporate entity.

The International Energy Agency has since described the resulting disruption as the largest to the global oil market in its history. Brent crude hit its peak at USD 126 per barrel in March 2026 and is presently at approximately USD 80, and over 2,000 ships and 20,000 mariners remain stranded in the Persian Gulf.

SC in Punjab State Power Corporation Limited v Talwandi Sabo Power Limited & Ors., 2026 INSC 515 , set aside the order of the APTEL and restored the penalty order of the Punjab State Electricity Regulatory Commission (PSERC) against Talwandi Sabo Power Limited (TSPL).

APTEL, vide judgement dated 27.04.2026 in Appeal Nos. 190 of 2019 and 216 of 2019 titled Damodar Valley Corporation v West Bengal Electricity Regulatory Commission & Another, dismissed the appeals filed by Damodar Valley Corporation (“DVC”), upholding the finding of the West Bengal Electricity Regulatory Commission (“WBERC”) that radial mode of supply by a generating company to a distribution licensee cannot be considered as sale to a consumer.

Supreme Court through its judgement dated 07.05.2026 in the matter of Delhi Electricity Regulatory Commission v Tata Power Delhi Distribution Limited has held that consumers cannot be required to pay for depreciation costs for power plants which are no longer supplying electricity.

Supreme Court through its judgement dated 08.05.2026 in the matter of Indian Railways v West Bengal State Electricity Distribution Company Limited & Others held that Indian Railways (“IR”) is not a Deemed Distribution Licensee (“DDL”) under Section 14 of the EA Act and is liable to pay Cross-Subsidy Surcharge (“CSS”) and Additional Surcharge (“AS”) as stipulated in Section 42 of the EA Act.