ANALYSIS OF MPERC DRAFT REGULATIONS ON FORECASTING, SCHEDULING, DEVIATION SETTLEMENT OF WIND AND SOLAR GENERATING STATIONS

Madhya Pradesh Electricity Regulatory Commission (MPERC) has published draft regulations for forecasting and scheduling for wind and solar projects. Important aspects of the regulation are discussed below.

Earlier Odisha, Gujarat, Karnataka, Tamil Nadu, Rajasthan, Jharkhand, Andhra Pradesh and Chhattisgarh had come out with their draft DSM Regulation on Forecasting & Scheduling of Wind & Solar.  So far, Karnataka is the only state that has published final regulations.

Executive Summary:

  • Forecasting and scheduling will be mandatory for all the wind and solar generators connected to the State grid, including those connected via pooling stations.

  • Error will be calculated on the basis of Available Capacity (AvC), with permissible deviation of ±15% for old wind projects and ±10% for new wind projects (i.e., projects commissioned after May 2017).

  • Settlement will be done through the “Qualified Coordinating Agency” or QCA. However there is no mention of Aggregation.

  • The Deviation charges shall be paid within 10 days of the issue of Statement of Charges for Deviation into the “State Deviation Pool Account”.

  • 16 intraday revisions will be allowed for wind and solar energy (one revision every 1.5 hours). Revisions will be effective starting from 4th time block onwards.

  • QCA will be treated as a state entity, registered with SLDC. The preparation and settlement of ‘Deviation Pool Accounts’ shall be undertaken on weekly basis coinciding with mechanism followed for regional energy accounts.

  • SCADA & Telemetry data is to be mandatorily provided to SLDC by the generators. SLDC shall formulate Data/information exchange requirements and protocols for the same.

Detailed Analysis:

MPERC has recently come up with draft regulation for forecasting and scheduling and deviation settlement mechanism. The primary objective is twofold: a) facilitate large-scale grid integration of solar and wind generating stations b) maintaining grid stability and security. Highlights of the draft regulation are below:

Applicability:

All Wind & Solar Pooling sub-stations, irrespective of their capacity, commissioning date and connectivity voltage level, have to provide a day-ahead and intra-day revisions to a maximum of 16/day, and one revision for each 1.5Hr interval.

Error calculation and penalty bands:

  • Payment for generation shall be as per actual generation (this is different from the inter-state regulation, where payment is on the basis of scheduled generation).

  • Error is calculated based on Available Capacity (this is same as in the case of draft regulations of TN, Gujarat, Odisha, Rajasthan and Jharkhand).

  • The deviation slab has been kept as (+/-) 10% for new projects and (+/-) 15% for old projects. The reference date for old and new projects is 26.5.2017.

Detailed Mechanism defined for Deviation Settlement

 

In case of Intra-State transmission, Penalty Mechanism for wind generating station or pooling station commissioned prior to 26.5.2017

 
In case of Intra-State transmission, Penalty Mechanism for wind generating station or pooling station commissioned after to the regulations are notified.
It is to be noted that the new projects commissioned after the regulations are notified, have to comply by stricter deviation norms, and may have to consider the costs and liabilities of this mechanism in their project financial planning.

Analysis of Draft Regulations on Forecasting and Scheduling of Wind and Solar Generating Stations – Rajasthan

CERC had notified forecasting and scheduling (F&S) regulation for inter-state sale of power a few months back. Subsequently, the Forum of Regulators (FoR) had come up with model regulations for forecasting and scheduling at the intra-state level. Rajasthan has published the draft forecasting and scheduling regulations

in line with the FoR model Regulations. Rajasthan is the fourth state to do so in recent days – MP, Karnataka and Tamil Nadu are the others.

Executive Summary:

  • The regulations will be applicable on all wind and solar generators with individual or combined capacity of 5MW and above that are connected to the state grid
  • Deviation will be calculated on the basis of available capacity
  • Settlement with the buyer will be on the basis of actual generation

Qualifying Coordinating Agency (QCA) will play a key role in the total process. QCA will be  responsible for forecasting, telemetry, scheduling and settlement of deviation.

The draft regulations are in-line in every aspect with the model F&S regulations released by FoR earlier. However, the model FoR regulations had proposed a 10% deviation band for new projects and 15% for existing projects. Rajasthan has proposed a 15% band for all projects.

Detailed Analysis:

Forum of Regulators have recently come up with model regulation for forecasting and scheduling and deviation settlement mechanism. The primary objective is two fold :

a) facilitate large-scale grid integration of solar and wind generating stations, and b) maintaining grid stability and security.

Highlights of the regulation are below: –

  • All solar and wind generators connected to State grid have to provide day-ahead and week-ahead schedule – Revisions can be made on a one-and-half hourly basis.
  • Payment for generation shall be as per actual generation (this is different from the inter-state  regulation, where payment is on the basis of scheduled generation).
  • The deviation slab has been kept as (+/-)15% for all generators at Intra-state level.
  • Penalty is calculated at fixed amounts per unit (whereas, for Intra-state it is calculated as a percentage to PPA rate) –
  • RPO accounting can continue as per existing arrangement, and needs no change.

The SLDC will also conduct a forecast of its own with the primary purposed of ‘secure grid operations by planning for the requisite balancing  resources.

Applicability of Regulations

  • All wind and solar generators connected to the State grid are covered:
  •  Having capacity of 5MW and above individually or in aggregate.
  • Regardless of date of commissioning.
  •  Including those connected via pooling stations
  • Selling power within or outside the state. Detailed Mechanism defined for Deviation.

Settlement calculation or Intra-state sale of power is as follows:

Detailed Mechanism defined for Deviation Settlement  calculation or Intra-state sale of power is as follows

In case of Intra-State transmission, Penalty Mechanism for existing generators :

The Draft Order can be accessed here.

 

Analysis of Model Regulations on Forecasting and Scheduling of Wind and Solar Generating Stations at State Level

As you may be aware, CERC had notified forecasting and scheduling (F&S) regulation for inter-state sale of power a few months back. Now, with the intent of having compatible regulations, the Forum Of Regulators (FOR) has come up with model regulations. It is expected that states will adopt this model regulation or something on these lines in the near future.

Executive Summary:

  • Forecasting and scheduling will be required by all wind and solar project, regardless of the date of commissioning and capacity
  • Deviations will be calculated on the basis of total available capacity
  • Penalty is a fixed amount beyond the error range (10% in case of new projects, 15% in case of old projects)
  • Settlement will be done through the “Qualified Coordinating Agency” or QCA.

Detailed Analysis:

Forum of Regulators have recently come up with model regulation for forecasting and scheduling and deviation settlement mechanism. The primary objective is two fold: a) facilitate large-scale grid integration of solar and wind generating stations, and b) maintaining grid stability and security.

Highlights of the model regulation are below:

–          All solar and wind generators connected to State grid have to provide day-ahead and week-ahead schedule

–          Revisions can be made on a one-and-half hourly basis.

–          Payment for generation shall be as per actual generation (this is different from the inter-state regulation, where payment is on the basis of scheduled generation). .

–          The deviation slab has been narrowed for upcoming projects (i.e., +/-10%) but has been kept as (+/-)15% for existing generators at Intra-state level

–          Penalty is calculated at fixed amounts per unit (whereas, for Inter-state it is calculated as a percentage to PPA rate)

–          RPO accounting can continue as per existing arrangement, and needs no change.

Applicability of Regulations

All wind and solar generators connected to the State grid are covered:

  • regardless of date of commissioning,
  • including those connected via pooling stations
  • selling power within or outside the state.

Detailed Mechanism defined for Deviation Settlement

Deviation calculation both for Inter-state and Intra-state has been kept as :

*Available Capacity would ideally be the Installed Capacity, unless any of the turbines are on outage. Similarly for solar panels.

In case of Intra-State transmission, Penalty Mechanism for existing generators :

In case of Intra-State transmission, Penalty Mechanism for up-coming generators :

The detailed Regulation can be accessed here.

 

OERC Draft DSM Regulations 2015

In order to maintain grid discipline and grid security as envisaged under the Indian Electricity Grid Code and Orissa Grid Code, Orissa released its first draft Deviation Settlement Mechanism Regulations on 23rd September 2015.

The Regulations are applicable to:

  • All Generating Stations including Solar and Wind Generators in the state of Orissa, except the Inter-state Generating Stations connected to Inter-State Transmission system.
  • All CGPs in the state of Orissa, with capacity of 5 MVA and above
  • All Distribution/Trading Licensees in the state of Orissa.
  • All Open Access Customers (Above 5 MW) in the state of Orissa.

The charges for the Deviations for all the time-blocks has been classified as:

A. For all generators except wind and solar, and all buyers in the state

The charges payable for deviation, will be UI linked and is worked out on the average frequency of a time-block at the rates specified as per CERC (Deviation Settlement Mechanism and related matters) Regulations, 2014 and amendments thereto.

B. For the Intra State Wind and Solar Energy Generators

These entities will be treated differently, and the error resulting from the deviations, will not be penalized based on the UI mechanism, but by a mechanism very similar to the recent amendments to CERC Inter State Forecasting, Scheduling and Imbalance Handling Regulation of 2015.

The detailed deviation linked penalty mechanism has been proposed as below:

The commission has invited comments and suggestions till 22nd October 2015.

The relevant regulation can be accessed here.

Amendment to Grid Code & Frequency for UI charges finalised by CERC

Hon’ble CERC within the very first week of 2014, has come up with amendments to two important regulations pertaining to Indian power sector. The commission rolled out the following regulations (orders can be accessed by clicking links below):

1) Central Electricity Regulatory Commission (Indian Electricity Grid Code) (Second Amendment) Regulations, 2014.

2) Central Electricity Regulatory Commission (Deviation Settlement Mechanism and related matters) Regulations, 2014.

In the following section, we limit our analysis to various amendments relating to the RRF mechanism.The Statement of Reason (SOR) for the changes has not yet been made available in the CERC website. We will share a more detailed analysis and the SOR when it is made available. These key changes (in context of RRF mechanism) are analysed and enumerated below:

  • Definition of pooling substation has been modified. In the draft Amendment, the implication was that new capacity being added on old sub-stations would be covered under the RRF mechanism. However, this stand has now been reversed – only those sub-stations commissioned after 3/5/2010 are covered under the RRF mechanism
  • Scheduling has been in effect from 15/7/2013. One revision for each time slot of 3 hours starting from 00:00 hours of a particular day subject to maximum of 8 revisions during the day are allowed.
  • The forecast is required to achieve an accuracy of 70%. Therefore deviation beyond +/- 30% will attract UI charges to be borne by the generator. However, this clause will become applicable from a date to be specified by CERC in the future. (Clause 5 of Annexure I of IEGC)
  • It is noteworthy that Clause 6 of Annexure I of IEGC which restricts the deviation to 150% of the schedule still remains intact. In case generation exceeds 150% of the generation, a fixed UI charge (corresponding to 50-50.02 HZ) will be payable, and the PPA rate will not be payable.
  • The above changes will come into effect from 17/2/2014
In another important regulation released by CERC, the commission has finalized a narrowed frequency band for charging deviation based on unscheduled interchange (UI).The UI charges finalized in the latest CERC (Deviation Settlement Mechanism and related matters) Regulations, 2014, is at variance with that proposed in draft notification (refer) issued on 20th June 2013. The new UI charges  have maintained clemency for generators (refer graph below).

 Our previous posts on RRF Mechanism can be read here.

 

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