TNERC Draft Intrastate Regulation on Forecasting and Scheduling of Wind and Solar Generating Stations

The Forum of Regulators recently announced a Model Regulation on intra-state RE deviation settlement regulation which will cover all the existing and upcoming wind and solar power producers in India. States like Karnataka and Madhya Pradesh electricity regulators have already announced their draft regulation on wind/solar forecasting and scheduling, in line with FOR’s Model Regulation.

Tamil Nadu Electricity Regulatory Commission also, recently came up with its first Intrastate draft regulation on Forecasting and Scheduling of Wind and Solar Generating stations.

Detailed Analysis

The draft regulation broadly covers the following aspects:

  • Mandatory forecasting and scheduling of all the existing and upcoming wind/solar power generation at interstate level.
  • The state load dispatch centers are also mandated to carry out their own parallel forecasting mechanism primarily to manage secure grid operations.
  • A wind/solar power producer can either choose to have his own forecast or opt for SLDC’s forecast for the scheduling purpose. The deviations arising due to a difference between the scheduled generation and actual generation will be settled as per the penalty mechanism adopted under the respective regulations.
  • Similar to the FOR’s Model Regulation the Qualified Coordinating Agency (QCA) will manage the entire exercise of forecasting, scheduling, energy metering, telemetry, deviation management and penalty de-pooling at every wind/solar pooling station.
  • In deviation Settlement, the deviations and errors are quantified w.r.t available generation capacity at the time of scheduling. This will reduce the absolute error magnitude especially during low wind/solar seasons and thus reducing the penalty amount that a generator may have to absorb.
  • A permissible deviation band of +/-10% (w.r.t available capacity) and a permissible deviation band of within 5 % (w.r.t available capacity) have been permitted without any penalty separately for all the existing wind and solar power producers respectively.
  • Deviation Charges in case of under or over-injection by wind generators, for sale of power within the State.
  • Deviation Charges in case of under or over-injection by solar generators, for sale of power within the State.
  • Though the draft regulation is in line with the Model Regulation. The table below depicts how the two regulations vary with each other in terms of the Deviation charges and the deviation band for solar and wind generators :
We feel that though this regulation will help to streamline the large scale grid integration and security and benefit intrastate sale of power but it is a much more stringent regulation than the other regulations, since the error deviation has been narrowed down from +/-15% to +/-10% for Wind and +/-5% for Solar.

The Draft Order 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.

Maharashtra revises procedures for Wind Open Access

Keys points on Revised Procedure for Wind Open Access in Maharashtra:

1.i) For wind open access application process the documents required would be:

  • Last 3 months energy bills
  • Consent letter from the wind generator
  • Last 3 months generation credit note
  • Declaration regarding installation of SEM at both ends
  • Last open access permission of consumer / generator
  • OA through trader, copy of valid Trading License and MoU between the trader & consumer/generator
  • For Captive use, Chartered Accountant’s certificate regarding 100% ownership of the wind power project or Equity share holding and undertaking regarding more than 51 % self-consumption

ii) Complete open access application to be submitted well in advance i.e. preferably 30 days prior to the date of commencement of open access.

iii) If an open access consumer is situated in the License area of other utility / Distribution Licensee then copy of NOC / open access permission issued by the concerned Distribution Licensee shall be submitted along with the open access application.

iv) If an open access consumer fails to achieve the Maximum Demand equal to or greater than eighty (80) per cent of the threshold level, the open access permission will be cancelled and further he shall be liable to pay, to MSEDCL, a penalty equal to two times the wheeling charges for the financial year or part thereof for which he had failed to achieve such Maximum Demand

v) If the contract demand of the open access consumer is in the range of 1000 KVA– 1500 KVA then Renewal of Open Access Permission shall be subject to use of Maximum Demand equal to or greater than eighty (80) per cent of the threshold level during previous open access period

2)Eligibility conditions:

  • An open access consumer can avail power from a Generating Company only, sourcing power from more than one / multiple generating companies will not be processed
  • Declaration in advance by OA consumer for sourcing power from other sources or generating company.
  • Open Access permission will not be granted to the consumers availing single point supply and sub distributing it further to multiple consumers. Such consumers are required to apply for Distribution Franchisee through MoU route as per relevant MERC & APTEL orders
  • The open access consumer will be entitled to seek open access for sourcing 100% power generated from a wind power project.

 3) Metering:

 Installation of Special Energy Meter (SEM) at both ends i.e. at generation end and at consumption end of wind energy shall be mandatory to seek open access.

4) Energy Accounting & Billing:

  • Joint Meter Reading (JMR), the monthly Generation Credit Notes (GCN) will be issued by the field office in due course of time
  • The open access consumer/ generator shall arrange to pay the requisite open access charges (Wheeling charges, transmission charges, operating charges, charges for import of energy & KVARH charges) and collect the monthly GCN from field office regularly
  • Late fees of Rs. 5000/- will be recovered if the GCN is collected one month later than JMR. Similarly, late fees of Rs. 6000/- will be applicable for issuance of GCN after 2 months from JMR.
  • The GCN shall not be issued after 3 months from the Joint Meter Reading and the energy corresponding to the GCN shall be treated as lapsed
  • The field office, where the open access consumer is situated, will give corresponding TOD time slot – wise credit adjustment in the monthly energy bills of the open access consumer.
  • Open access consumer has to pay CSS charges for third party sale, CSS not applicable for captive.

5) Banking:

MSEDCL, for the time being, has decided to provide the banking facility in part i.e. the wind generation units will be allowed to get carried forward for getting adjusted in next energy bills if could not be adjusted in same month till the end of that financial year, but the surplus units, if any, at the end of financial year will not be purchased by MSEDCL.

6) Change of option not permitted during validity period:

OA consumer will be permitted only to change the option from open access to Sale to MSEDCL during the validity period of open access permission, no other option allowed.

7) Wind energy injected into the grid during the intervening period for which OA permission could not be granted due to late submission of OA application or change of option by wind open access generator from open access to Sale to MSEDCL during the validity period of open access permission, will be purchased by MSEDCL at MERC tariff rate from the wind generators.

  • Gr I: 10 % less than that of GR.II MERC rate of Rs. 2.52 per unit
  • Gr II: Rs. 2.52 per unit.
  • Gr III: As per MERC order dated 24.11.2003
  • Gr IV: Will not be purchased, wind energy will be treated as lapse.

Contributed by – Nishesh Pandit

Wind majors selling assets to avert indebtedness

Wind power majors of the likes of Suzlon, DLF etc. are now looking for buyers who can buy their wind portfolios which will provide an opportunity for the former to raise capital and abrogate a situation of indebtedness.  Regulatory failure has left operating a wind farm a costly affair. On the other hand, the buyers are usually cash rich companies planning an expansion of  their green portfolios. For these buyers, owning an operating farm poses less risk and higher returns in terms of already established performance.

According to a study by Bloomberg, DLF (a property developer company) agreed to sell 217 MWs of projects for 5.23 billion rupees. Ushdev Power Holdings Limited has plans to boost its wing generation capacity and is in talks with Suzlon Energy Limited to acquire 400 MWs over the next 15 months. A detailed article by Bloomberg, can be assessed by clicking here.

In the past few days there have been various petitions filed by wind bodies like IWPA requesting to reinstate the accelerated depreciation scheme (Click Here). WEGs are looking for an urgent regulatory push from the government to regain the sector’s sheen.

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