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 GERC DRAFT REGULATION ON FORECASTING, SCHEDULING, DEVIATION SETTLEMENT OF WIND AND SOLAR GENERATING STATIONS

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

Earlier Odisha, Madhya Pradesh, 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.

The last date for giving comments and suggestions is 16th February 2017.

 

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 ±12% for old wind projects and ±8% for new wind projects (ie, projects commissioned after Jan 2010). Permissible deviation for solar project will be ±7%.
  • Aggregation of more than one pooling station is allowed.
  • Penalty rates are different than those in the model FOR regulations. For wind, the initial penalty is Rs 0.35/unit, increasing to Rs 0.70 and Rs 1.05 per unit in higher penalty bands. For solar, the initial penalty is Rs 0.60/unit, increasing to Rs 1.2 and Rs 1.8 per unit in higher penalty bands.
  • 16 and 8 intraday revisions will be allowed for wind and solar energy respectively (one revision every 1.5 hours). Revisions will be effective starting from 4th time block onwards.
  • Settlement will be done through the “Qualified Coordinating Agency” or QCA. QCA will be treated as a state entity, registered with SLDC.
  • 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:

GERC 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 a three day ahead schedule, and intra-day revisions to a maximum of 16/day for wind and 8/day  for solar energy.

Aggregation of more than one pooling station by the QCA will be allowed.

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, MP, Odisha, Rajasthan and Jharkhand).
  • The deviation slab has been kept as (+/-) 12% for old projects and (+/-) 8% for new projects. The reference date for old and new projects is 30.01.2010.
  • Unlike all other DSM regulations, the absolute error for wind energy generators will be reduced by 1% every year from start of fourth year till subsequent 5 years.
  • At the end of 5th year the absolute error shall become <=7% for old projects and <=3% for new projects in case of wind projects.
  • Similarly in case of solar projects the absolute error shall be reduced by 1% every year from start of the fourth year till subsequent 5 years, reaching the minimum of <=2%.
  • Penalty is calculated at fixed amounts per unit (whereas, for Inter-state it is calculated as a percentage to PPA rate).
  • A tripartite agreement will be formed amongst the Generator, QCA and SLDC, in case the generator fails to pay the deviation charges within specified timeline.
  • Energy accounts shall be prepared by SLDC on 10 day basis.
  • De-pooling shall be done in proportion to available capacity, energy generated in each time block, absolute error of individual generator or any other methodology between QCA & Generators.

 

Detailed Mechanism defined for Deviation Settlement

In case of Intra-State transmission, Penalty Mechanism for wind generating station or pooling station commissioned prior to 30.01.2010

 

 

In case of Intra-State transmission, Penalty Mechanism for wind generating station or pooling station commissioned after to 30.01.2010

In case of Intra-State transmission, penalty mechanism for solar generating station or pooling station

A brief comparison of the draft regulation of the 6 states and the Model Regulation is given in the table below:

 

QCA:

The qualified coordinating agency (QCA) will be required to meet certain eligibility criterion. Briefly, these are:

  • Providing F&S services for more than 2 years
  • Having a net-worth of more than Rs 2.5 crore
  • Have experience of working in different “terrains and regions”
  • QCA should have a well qualified team in-house, including skills of data science, statistics and software development
  • QCA should be using software of a “at least CMMI Level 3 certified” company

 

Chhattisgarh State Electricity Regulatory Commission (Intra-state Availability Based Tariff and Deviation Settlement) Regulations, 2016

The Forum of Regulators (FoR) had come up with model regulations for forecasting and scheduling at the intra-state level last year. In line with that Chhattisgarh recently came up with its Intra-state deviation settlement Regulation.

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

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. Chhattisgarh has proposed a 10% band for all projects for both Solar and Wind.

Detailed Analysis:

Forum of Regulators have recently come up with model 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, 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 (+/-) 10% for all generators at Intra-state level.

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

In case of Intra-State transmission, Penalty Mechanism for wind/solar generators:

The regulation can be accessed here.

 

Analysis of Regulation on Forecasting and Scheduling of Wind and Solar Generating Stations at State level in Andhra Pradesh

In the follow-up after the FOR – Model Regulation for the Intra State level projects, APERC has come out with a Draft Regulation on Forecasting & Scheduling for the Wind & Solar projects at Intra State level in Andhra Pradesh, based on the mechanism suggested in the Model Regulation. Earlier Odisha, Madhya Pradesh, Karnataka, Tamil Nadu, Rajasthan and Chhattisgarh had come out with their DSM Regulation on Forecasting & Scheduling of Wind & Solar.

Executive Summary:

  • Forecasting and scheduling will be mandatory for all the wind and solar generators connected to the AP State grid and connected via pooling stations irrespective of their capacity (MW) and date of commission of the plant.
  • Deviations will be calculated on the basis of Available Capacity (AvC).
  • The deviation slab has been kept as (+/-) 10% for all the wind and solar generators beyond which penalty is applicable at fixed rate as defined below. Whereas the deviation slab for plants commissioned prior to the effect of the regulations is kept at (+/-) 15%.
  • Settlement will be done through the “Qualified Coordinating Agency” or QCA, or the “Aggregator”.
  • SCADA & Telemetry data is to be mandatorily provided to SLDC. Protocols for the same shall be determined later by the SLDC through the detailed procedures.
  • Provision of six months for existing wind and solar generators to comply with the regulation from the date of publication of these regulations in the official gazette.
  • All the new wind and solar generators which shall be commissioned after six months from the effective date of the regulation shall comply these norms before commissioning of the project and connecting with the state grid.
  • 16 revisions allowed during the intraday with each revision effective from 4th time block.
  •  Payment for generation shall be as per the actual generation.

Detailed Mechanism defined for Deviation Settlement

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

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

The regulation can be accessed here.

 

Karnataka Electricity Regulatory Commission Draft Smart Grid Regulations, 2015

KERC came up with its first draft Smart Grid Regulations on 22nd December, 2015. Smart grid through automation and controls system would deliver electricity more reliably, effectively and environment friendly, thus enabling much wider generation and consumer participation in power sector operations.

Some of the Key points of the regulation are as follows:

  • These regulations shall be applicable to all Generation companies, Distribution Licensees, Transmission Licensees and consumers in the state and connected to the state grid.
  • The objective of the regulation is to enable integration of various smart grid technologies, enhance network accessibility and measures to bring about efficiency improvement in generation and integrate renewable energy into grid and micro grids.
  • The Commission may from time to time issue guidelines for generating company, transmission licenses and distribution licensee in execution of activities like formulation and implementation of smart grid programmes.
  • The Commission directs every transmission and distribution licensee to constitute smart grid cells within three months of notification of the regulation which shall be responsible for:
    • Baseline study & Development of data
    • Formulation of smart grid plans, programmes and projects
    • Design and development of smart grid projects including cost benefit analysis and plans for implementation, monitoring and reporting.
    • Assist licensees in getting necessary approvals to smart grid plans.
    • Implementation of smart grid programmes
    • The transmission licensee and distribution licensee may combine activities related to energy efficiency, DSM and smart grid implementation within the same cell.

 

The 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.

Kerala Finalizes Solar Rooftop Policy

Kerala State Electricity Regulatory Commission (KSERC) through an order on 10th June 2014, has finalized its policy for solar rooftop systems. The policy is named Grid Interactive Distributed Solar Energy Systems.

The policy is aimed at promoting solar power in the state by involving more generators. The policy is applicable for all the distribution licensees in the state and to all consumer availing electricity at voltage levels below 11kV, and shall come into force from the date of publication in the official gazette.

According to the regulation, any consumer may install the solar energy system owned by him or by other third party, provided that the installed energy system should fall under the rated limits, as defined under the regulation, and should comply with the systems of the distribution licensee.

The rated capacity of the installed system shall not be less than 1KWp (Kilo Watt peak) and shall not exceed 1MWp (Mega Watt peak).

The output of the solar system shall comply with provisions of the Kerala Electricity Supply Code 2014, which is defined as -

Sl. No. Type of connection Supply Voltage Output specifications
1 Low Tension Single phase 240 V 240 V, 50 Hertz
2 Low Tension Three phase 415 V 415 V, 50 Hertz
3 High Tension 11000 V 11000 V, 50 Hertz

Banking facility: The solar energy systems installed under this regulation are eligible for the banking facility and shall be done on the basis of the readings taken for the billing period applicable to him.

Metering arrangements: The net meters shall be installed at the interconnection point of the consumer with the network of the distribution licensees, and the solar meters shall be installed at the delivery point of the solar systems to measure the energy generated. The commercial settlement shall be done on the basis of readings of this meters.

The eligible consumers have the right to avail open access for wheeling the excess energy generated to one or more premises owned by him within the area of supply of the distribution licensee. Such right for wheeling access energy shall be available only if the wheeled energy to other premises exceeds 500 units in month and the consumer will be able to avail only 95% of the total energy wheeled, while remaining 5% will be adjusted towards distribution losses.

Accounting and settlement – The accounting of the energy generated, consumed and injected by the consumer shall be done on the basis of the readings taken by the meters, for the period applicable to him.

Solar RPO – The energy generated from the solar energy systems of any consumer shall be accounted towards RPO if the consumer is an obligated entity, and if not, then such energy shall be accounted towards RPO of the distribution licensee.

Banking and Cross Subsidy Charge – The eligible consumers generating solar power under this regulation, shall are exempted from banking and cross subsidy surcharge.

The details of the order can be found here

For more details on net metering, click here

 

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