CERC Lays Down Interim Measures for Load Despatch Centers to Improve Grid Stability

The Commission asked states to maintain power reserves for meeting peak-hour demand

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Considering the growing instability of the grid due to seasonal jumps in power demand, the Central Electricity Regulatory Commission (CERC) has suggested a few interim measures for regional load dispatch centers (RLDC), state load dispatch centers (SLDC), and national load dispatch centers (NLDC).

In October 2024, the Commission issued directions to NLDCs, SLDCs, and RLDCs to address the anticipated surge in demand for electricity due to seasonal demand variations.

In its analysis, the Commission noted that only dispatch centers in the Southern and Western regions (except Maharashtra) were regularly submitting their daily, weekly, monthly, and yearly demand forecasts and resource adequacy reports.

Taking note of the unpreparedness and irregularity in the operation of NLDCs and SLDCs, the Commission urged the states to maintain their own adequate power reserves to meet peak-hour demand. While the NLDCs agreed to maintain power reserves for each state starting April 1, 2026, the Commission ruled that it would be cost-effective for states to hold their own reserves.

It added that with the growing integration of renewable energy into the grid, the states must enable two-shift operation of intra-state thermal generating stations. Under the two-shift operation model, thermal power stations must ramp down during high renewables generation and ramp up during non-solar hours.

The Commission also directed the SLDCs to ensure that renewable energy generating stations comply with the Central Electricity Authority’s technical standards before integrating with the grid. SLDCs must ensure that power-generating stations connected to the state transmission system meet high voltage ride-through, low voltage ride-through, and other reactive compliance standards.

It also wanted SLDCs to ask intrastate power-generating stations to enable automatic generation control. Allowing automatic generation control would help generators to earn revenue from automatic generation control operations, and states to maintain reserves within their boundaries.

To address the growing concern of cyber threats in the power sector, it also asked SLDCs to train manpower in the area of cybersecurity.

The Commission also suggested implementing the Scheduling, Accounting, Metering, and Settlement of Transactions program that provides a roadmap for implementing a robust, scalable, and dispute-free scheduling, metering, energy accounting, and settlement system in the states.

It said firm and dispatchable renewable energy projects must have declared capacity during peak hours of at least equal to the declared capacity during off-peak hours. If a power generation station provides less declared capacity during peak hours of the day than off-peak hours, the fixed charges will be calculated on the lower of the stated declared capacities.

In case the system frequency is greater than 50.05 Hz and directions are given under Tertiary Reserve Ancillary Service Emergency, the power generator will not incur any deviation charges for over-injection of power.

The Commission also asked the SLDCs to address the issue of manpower shortage to ensure the smooth operation of their services.

In September 2025, in a bid to strengthen grid stability, CERC proposed tightening the deviation settlement mechanism rules for wind, solar, and hybrid projects, effective from 2026.

In the same month, the Grid Controller of India and the Central Electricity Authority called for a series of actions to prevent an Iberian Peninsula-type blackout disrupting power supply for hours on April 28, 2025.

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