To overcome the difficulties related with managing the infirm wind and solar power, the Central Electricity Regulatory Commission introduced the provisions for wind/solar power forecasting under the Indian Electricity Grid Code in May 2010. The mechanism was promoted as the Renewable Regulatory Fund (RRF) mechanism. The mechanism was originally intended to be implemented by January 2011, which got four extensions (Jan’12, Jul’12, Feb’13, July’13) before it could get even started.

The mechanism finally got implemented from 15th July, 2013 and subsequently got caught under the litigations as the Wind Associations challenged the decision of CERC to implement such regulations for wind power plants connected under the intra-state networks. Finally, the commercial settlement related with the mechanism finally went to temporary suspension mode in Feb’14.

The mechanism also attracted lot of resistance from various stakeholders due to the reasons represented in the block diagram below.

CERC Forecasting and Scheduling Regulations 2015

The CERC, on 05th April 2015 proposed new framework for the Forecasting, Scheduling and imbalance handling of Wind and Solar Energy generating projects at inter-state level, and finalized the same through notification on 7th August, 2015, to make major amendments to the Deviation Settlement Regulations (DSM) Regulation 2014 and the IEGC Regulation 2010. The highlights of the same are given below:

Error calculation methodology:

The error calculation methodology used earlier and the proposed one are compared below:

The penalty mechanism as per the new regulation is as follows:

  • For single PPA agreements, the fixed rate shall be the PPA rate between the generator and buyer, and in case of multiple PPA’s, the weighted average shall be taken.
  • For Open Access transactions for RE, where consumer is not claiming RPO, or in case of captive power, the fixed rate shall be the APPC rate at the national level.

The existing wind capacity of 23.7 GW[1], most of which comes under the control area of the state, whereas in case of solar, approximately 200 MW odd capacity out of 4 GW[2] comes under the control area of RLDCs. With the central government thrust on large additions year-on-year, in future, large inter-state projects will come under purview of the new inter-state forecasting regulation. However, the regulation for accommodating the capacity connected with the state control area can be expected to be announced soon as the CERC in its closing remarks of the final regulation has expressed the desire for the same.

We are expecting the Intra-state regulation to come soon, along with the implication of the commercial settlement. With the implementation of the Inter-state regulation becoming applicable from 1st November 2015, and possibly, the soon to come Intra-state regulation, it is a huge task at hand for all stakeholders, especially for those generators for whom forecasting and scheduling will be something new to oblige to, when the new regulations are implemented. It also calls for more efficient approach in terms of huge data management schema, automation of operations, forecasting techniques and error handling & response.

As an experienced Co-ordinating agency we have geared up to the new regulations in all way possible, and would like to deliver our value oriented in-house services as per expectations of stakeholders, and even beyond.

The IEGC Amendment can be accessed here.

The DSM Regulation can be read here.

The Statement of Reasons from CERC can be understood here.


[1] As per MNRE data on 30.06.2015

[2] As per MNRE data on 30.06.2015