MERC announces amendments in the Forecasting, Scheduling and Deviation Settlement for Solar & Wind Generation, Regulations 2018

Maharashtra Electricity Regulatory Commission (MERC) has announced a notification in accordance with the Principal regulations MERC (Forecasting, Scheduling and Deviation Settlement for Solar and Wind Generation) Regulations, 2018. In accordance with regulation 1.2 of the principal regulations, the commission has notified that the effective date of commercial arrangement will be 1st July 2019. This has come after Commission has noted the concern raised by Stakeholders during the meeting dated 26 February 2019 regarding the short time available for implementation of the Regulations and also the submission made by MSLDC about its preparedness to rollout the Commercial Arrangement by 30 June 2019.

Further, the commission has also announced amendments in the implementation of Procedure under MERC (Forecasting, Scheduling and Deviation Settlement for Solar and Wind Generation) Regulations, 2018.

The clause 7.1 of the said Detailed Procedure specified the MSLDC fee and charges including scheduling fee and the re-scheduling fee payable by QCA to MSLDC. The said issues were highlighted by REConnect also, how the rates stated by MSLDC are exceptionally high and unfair.

A meeting was held by the commission with the stakeholders where they stated their concern regarding the high charges and how these charges are not so high in other states like Andhra Pradesh, Karnataka, Madhya Pradesh & Rajasthan.

The commission has announced the updated fees and charges related to scheduling charges, the abstract of which is as follows:

Uttar Pradesh announces Deviation Settlement Mechanism Regulations, 2018

Uttar Pradesh Electricity Regulatory Commission (UPERC) recently announced the (Forecasting, Scheduling, Deviation Settlement and Related Matters of Solar and Wind Generation Sources) Regulations, 2018

The key points of the regulations are as below:

  • The regulations are applicable to all solar (excluding rooftop solar covered under UPERC RSPV regulations) and wind energy plants in Uttar Pradesh connected to the intra-state transmission system and having an installed capacity of 5 MW & above.
  • The solar or wind generation plants with an installed capacity of 5 MW or more, using the power generated for captive consumption will also be covered under these regulations.
  • Each pooling station having a minimum combined installed capacity of 5 MW will have one QCA, However, in case a particular solar or wind generator having a capacity of 50 MW or more, then such generators will act as a QCA provided that such generator is connected alone to a pooling station.
  • Wind and solar generators under these regulations will be required to provide metering with a provision for recording and storing all the load survey and billing parameters for every 15-mn time block as specific in CEA regulations governing metering.
  • A penalty will be imposed in case of failure of generator/QCA to provide data as directed by SLDC or error in the data provided as below:

  • In case of failure of the generators/QCA comply with the above timelines, a penalty of INR 25,000/- per day will be levied.

DERC announces (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation) Regulations 2018 along with draft order for Renewable Purchase Obligation (RPO)

The Delhi Electricity Regulatory Commission recently issued a Renewable Purchase Obligation and Renewable Energy Certificate framework Implementation, regulations 2018 along with a draft order prescribing Renewable Purchase Obligation (RPO). The draft order will be applicable to any captive user, open access consumers and discoms in the state.

  • The RE projects will have an option of adopting either the tariff pricing service or the REC mechanism for pricing.
  • The projects opting for a tariff under the above-mentioned mechanisms will continue with the same tariff pricing structure until the period of validity of Power Purchase Agreement.
  • For all the obligated entities the aggregated RPO compliance of all the gross purchase from various generating stations will be considered for the quantum of renewable energy purchased towards compliance of Renewable Purchase Obligation.
  • Any surplus electricty generated after RPO compliance of such obligated entity will qualify towards RPO compliance of the Discoms.
  • All the obligated entity can purchase REC for any shortfall in their RPO targets for any fiscal year within 3 months or three trading sessions, provided that in case the obligated entity procures excess renewable power over and above its RPO target in any year, the obligated entity shall be allowed to set off in the following order: (i) against past accumulated shortfall in RPO compliance, if any,¬†(ii) carry forward excess quantum of renewable power after set off against a past accumulated shortfall in RPO compliance up to three succeeding years and shall be set off against the quantum of Renewable Purchase Obligation of such succeeding year(s).

According to the draft order, the annual target for RPO in terms of the RPO-REC regulations for the obligated entities other than the discoms for FY 17-18 to FY 19-20 which will be considered as the percent of the total consumption by the obligated entities excluding of power through hydroelectric plants.

The commission has asked for the stakeholders to send in their comments, suggestions, and opinions to the Draft Delhi Electricity Regulatory Commission (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation), Regulation 2018 & draft order by 2nd February 2019.

CERC announces draft (Deviation Settlement Mechanism and related matters) (Fourth Amendment) Regulations, 2018

The CERC has announced the draft (fourth) amendments of Deviation Settlement Mechanism & related matters regulations. The principal regulations came into effect in January 2014 followed by three amendments in December 2014, August 2015 and May 2016 in that order. The previous amendments were notified to solve issues related to grid operations the Deviation Settlement Mechanism (DSM) impact with respect to frequency due to emerging markets. The latest amendments talk about the limitations of the DSM price vector and recommendation for the same.  According to the report prepared by an expert group consisting of representatives from CEA, POSOCO, CTU, and CERC suggestive measures have been given for bringing power system operation closer to the National Reference Frequency.

As per the report, the present DSM has design limitations and since the rates are designed by CERC the changing of rates takes time under the regulatory process and does not catch up with the change in prices in other market segments. The present DSM rates at 50 Hz (178 paise/unit) are linked to the variable charges of a pit-head thermal station whereas the highest DSM rate (824 paise/unit) is linked to the variable charges of the costliest generator (liquid fired). Ideally, the DSM price should capture the Value of Lost Load (VoLL) so that utilities procure adequately in advance so as to meet their universal service obligations.

Few amendments from the draft document are as below:

  • The definition of Area Clearing Price (ACP) & Day Ahead Market (DAM) is included in order to connect ACP & DAM to the DSM prices by considering the factor geography & transmission congestion.
  • The reference frequency band (49.85 Hz to 50.05 Hz) is proposed for the purpose of DSM price vector from the previous frequency band of (49.70 Hz and above).
  • The maximum ceiling limit applicable for average daily ACP discovered in the DAM segment of power exchange at 50.00 Hz is proposed to be 800 Paisa/kWh from 824 Paisa/kWh
  • The Day-ahead market price of the Power Exchange having a market share of 80% or more in energy terms on a daily basis is proposed to be taken into consideration for linking to the DSM price vector. If there is no single Power Exchange having a market share of 80% or more, the weighted average day-ahead price is proposed to be used for linking to the DSM price.
  • It is proposed to link the cap rates for generators using coal/lignite/ APM gas to the energy charges as billed for the previous month is proposed.
  • Reduction in the number of time blocks (from 12 to 6-time blocks) for a change of sign in case of sustained deviation in one direction is proposed.
  • Levy of an additional surcharge of 20% on the daily base DSM payable/receivable in case of violation of the stipulation regarding the change in sign.
  • It is proposed that the total deviation from schedule during a day should not be in excess of 3% of the total schedule for the drawee entities and 1% for the generators and in case of violation 20% of the daily base DSM payable/receivable be levied.

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