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:

Analysis of Draft Regulations on Forecasting and Scheduling of Wind and Solar Generating Stations at State level in Jharkhand

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

Executive Summary:

  • The regulation will be applicable till 31st March, 2021, after it comes into effect.
  • Forecasting and scheduling will be mandatory for all Wind & Solar Pooling S/Ss, irrespective of their capacity, commissioning date and connectivity voltage level.
  • Deviations will be calculated on the basis of available capacity.
  • Penalty is a fixed amount beyond the error range (15% in case of projects commissioned before, and 10% for projects that are commissioned after the date of implementation of the regulation.).
  • Settlement will be done through the “Qualified Coordinating Agency” or QCA. However, the draft regulation does not mention anything about “aggregation” beyond the Sub-station level forecast.
  • SCADA & Telemetry data is to be mandatorily provided to SLDC.

Detailed Analysis:

JSERC 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 even though there are no wind projects, and the potential for wind is negligible b) maintaining grid stability and security. Highlights of the draft regulation are below:

Applicability: All Wind & Solar Pooling S/Ss, irrespective of their capacity, commissioning date and connectivity voltage level, have to provide day-ahead and week-ahead schedule, and intra-day revisions to a maximum of 16 per day.

– Revisions can be made on a one-and-half hourly basis, with prior notice of minimum1 hour for each revision.

– Payment for generation shall be as per actual generation (this is different from the inter-state regulation and the Karnataka draft 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, but different from the Karnataka draft regulation, where error is calculated on the basis of scheduled generation.).

– The deviation slab has been kept as (+/-)15% for existing generators, and (+/-)10% for upcoming projects whose commissioning date lies after the date of implementation of the final regulation.

– 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.

– De-pooling shall be done based on either actual generation or available capacity.

Detailed Mechanism defined for Deviation Settlement

 

This is in line with the FoR Model Regulation, which states like TN, Odisha, MP and Rajasthan have also followed. This will help bring the evenness in the impact on generators, considering that the older RRF regulation had put huge liabilities on generators especially in the low wind season.

The penalty mechanism based on % deviation for all obligated generators:

The draft regulation was notified on 24th March, 2015, and has given time till 11th April, 2016, to submit comments to the Secretary, JSERC.

Other states like Maharashtra, Andhra Pradesh, Telangana and Gujarat are expected to follow soon with their draft regulations. A brief comparison of the draft regulation of the 6 states and the Model Regulation, is given in the table below:

Old/New – Refers to Old and New projects, w.r.t. the date of implementation of the final regulation.

TBA – To be announced.

 The regulation can be accessed Here.

 

 

Rajasthan publishes draft Forecasting and Scheduling regulations

RERC has released draft forecasting and scheduling (F&S) regulations. Rajasthan has become the 4th state to release draft F&S regulations in recent days (MP, Karnataka and Tamil Nadu are the others).

The key points of the regulations are:

  • 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 and 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.

 

Wind producers in TN favouring power forecasting & scheduling

As per an article in The Hindu, Tamil Nadu a leader in wind power generation (installed capacity of around 7200 MW) in the country has, off late, been disappointing its wind power producers. TN’s state distribution company (TANGEDCO) has been shying away from purchasing power generated from these generators owing to poor evacuation facility and a “Banking” clause which empowers generators to claim the power previously injected into the grid.

Wind power producers have been making huge losses as TANGEDCO continues to discard the power that is being generated from these wind machines. But a positive side as a consequence of this, seems to be tilting in favour of forecasting & scheduling. Hon’ble CERC had recently barred all commercial settlements envisaged under the RRF mechanism.

Wind power producers (in same article) are betting on forecasting & scheduling to serve as a saviour for them. They say that an estimated declaration of power to be injected, beforehand, is expected to address most issues of TANGEDCO.

More on RRF mechanism can be learned by visiting the following links –

Link 1

Link 2

Link 3

Renewable energy management centers to be established – CEA

Central Electricity Authority (CEA) recently unveiled a report on ” Large Scale Grid Integration of Renewable Energy Sources – Way Forward”. From the point of view of grid security and resource adequacy during operation, the CEA has realized, that forecasts are crucial.  In the report, CEA has emphasized establishment of Renewable Energy Management Centers (REMCs) which shall be bestowed with forecasting responsibilities in respect of renewable power.

CEA recommends REMCs to be co-located with respective load dispatch centres at state, regional and national level with hierarchical coordination. For maintaining load generation balance of the state, states will have to co-ordinate with REMCs. The forecast data of REMCs will be shared with SLDCs, who will in-turn be responsible for scheduling.

Acknowledging the recently launched mechanism under “Renewable Regulatory Fund”, CEA quotes the following –

“The above provision of flexibility in scheduling only provides commercial compensation to the host states for deviating from the schedule on account of  RES but does not absolve the state SLDC of the responsibility to comply with the IEGC.”

This implies that CEA wants SLDCs to take more responsibility towards variability in renewable generation. Although, CEA was mute on sharing of forecast data with the “coordinating agencies”. 

The report can be assessed here.

To know more about RRF mechnism – Click Here or you may get in touch with us.

Go to top