WEGs move to Court against RRF Mechanism

Wind energy generators (WEGs) of our nation have recently moved Delhi High Court against the central regulator (CERC) for implementation of RRF mechanism; under which the generators are required to participate in scheduling and forecasting of their power generation on a day-ahead basis. Under the renewable regulatory fund (RRF) mechanism, a generator whose schedule deviates from the forecast over the range of -30 % to +30 % will have to face financial penalties based on system frequency. The schedule to be submitted will be for every 15 minutes i.e. for a total of 96 time blocks during a particular day. For more information on the RRF mechanism, click here.

The Hon’ble CERC in an effort to improve grid operation and to enhance integration of renewable power in the grid, had finally mandated the mechanism to be effective from 15th July 2013; followed by prior deferments on two occasions. WEGs assert and fear that being in a range +- 30 % will be a daunting task and will mulct close to 12-15 % of their profits as reported in an article of  The Hindu. The petition is filled by Wind Independent Power Producers Association (WIPPA) and the association has asked for more time. Although they agree to submit the forecasts and schedules on a daily basis, devoid of any penalty mechanism in place.

With RRF mechanism already in effect since 15th July 2013, with a hand-full of participants only, it will be interesting to analyse the after-effects once the Regional Power Committees (RPCs) come out with energy accounting statements for the very first week.

For more details on the mechanism and relevant services provided by us, you may refer to our monthly newsletter “OPEN ACCESS Vol. 32″.