GENERAL1 Oct 2026
Stricter DSM rules may cut renewable project IRRs by up to 100 bps: Crisil
Stricter rules around Deviation Settlement Mechanism (DSM) charges could cut renewable project returns by up to 100 basis points, says Crisil. These charges apply when actual generation differs from the schedule. Better forecasting, aggregation and storage will now decide how steady your cash flows stay. If you run or fund renewable projects, review your generation forecasting and storage plans early.
Key Statutory Highlights
- Crisil says stricter Deviation Settlement Mechanism rules may cut renewable project IRRs by up to 100 basis points.
- DSM charges arise when actual generation deviates from scheduled generation.
- Better forecasting, aggregation and storage will increasingly decide cash flow resilience.
Actionable Advice for Taxpayers / Founders:If you own or fund renewable projects, it may be worth reviewing your generation forecasting, aggregation and storage planning now and checking how deviations could affect your projected cash flows.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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