CERC Postpones New Deviation Settlement Regulations Again Amid COVID-19

The implementation has now been delayed to December 1, 2020

thumbnail

The Central Electricity Regulatory Commission (CERC) has once again rescheduled the implementation of the fifth amendment to the deviation settlement mechanism regulations (DSM). The earlier date for its implementation was June 1, 2020, which has now been extended to December 1, 2020.

In the wake of coronavirus outbreak in the country, the Commission had earlier rescheduled implementing the fifth amendment of deviation settlement regulations from April 1, 2020, to June 1, 2020.

In line with this extension, the Commission has extended the applicability of the existing provisions up to November 30, 2020.

This extension was announced after the Commission received representations from various stakeholders expressing difficulties in implementing the provisions of DSM given the current crisis.

In May 2020, Gujarat State Load Dispatch Center (GSLDC) submitted that the nationwide lockdown imposed by the Government of India to contain the spread of COVID-19 had a severe impact on grid operation. Although the state demand and renewable energy variations remain on the higher side, the revenue collections of state distribution companies have dropped drastically. It added that both the state-owned and private distribution companies are facing a financial crunch. Due to less demand, many state generators are being kept in “reserve shutdown.

“In such a situation, it will be very difficult to change the sign of the deviation after every six-time blocks,” it added.

Similarly, the Transmission Corporation of Andhra Pradesh Limited (APTRANSCO) had pointed out that under drawl in real-time is due to reasons like the high generation of renewable energy (more than the forecast), a sudden change in weather, rigid short-term open access (STOA) and power exchange transactions, contractual limitations in backing down long-term access and medium-term open access (MTOA), and minimum units required to meet peak loads. It added that there is a difference between readings of supervisory control and data acquisition (SCADA) and structural equation modeling (SEM) data.

The APTRANSCO said that it is difficult to implement the regulation unless the SEM data is made available to the SLDCs on a real-time basis.

APTRANSCO further requested the Commission that the sign change requirement after every 12-time blocks, which was applicable up to May 31, 2020, should continue forever, and the sign change requirement for every six-time blocks may be withdrawn.

“Higher DSM rate itself is leading to self-regulation by states. The introduction of the real-time market (RTM), will push backward the right to revision or call back, by four additional time blocks to seven-time blocks. As a result, the problem faced by the drawee entities will be further aggravated. Further, the recovery of grid demand is very slow in the present lockdown situation,” it added.

Rajasthan Urja Vikas Nigam Limited (RUVNL) stated that since the penetration of wind energy was on the higher side, it had become difficult to manage surplus power. It also pointed out that due to the lockdown, revenue collection of the distribution companies had severely been affected. So, it requested to extend the implementation of the proposed amendment by another three months.

Besides agreeing to provide the extension, the Commission also emphasized that the stakeholders should take steps to channel their short-term energy requirement through organized markets and refrain from depending on the grid.

Notably, the Power Exchange India Limited (PXIL) and the Indian Energy Exchange (IEX) started their real-time market trading platforms for electricity transactions on June 1, 2020. The real-time market is a platform widely used across the world. The RTM is designed as a half-hourly market, comprising 48 auction sessions of 15-minute duration each. The auction sessions would be conducted during even time blocks of the hour with delivery to commence from one hour after the closure of the trade session.

Image credit:  Dusty Matthews from Keller, United States / CC BY

thumbnail

Anjana Parikh

RELATED POSTS

Mercom Research Focus
thumbnail
India Installs a Record 2.5 GW of Solar Open Access in 2022, Up 92% YoY

India added 2.5 GW of solar open access in the calendar year (CY) 2022, a year-over-year (YoY) increase of 92% from the 1.3 GW installed in CY 2021, according to the newly released 2022 Q4 & Annual Mercom India Solar Open Acce...

March 15, 2023

Solar

Kerala Issues Empanelment Tender for 100 MW of Solar Projects

The Kerala State Electricity Board (KSEB) has invited bids to empanel solar developers to set up 100 MW of grid-connected rooftop and ground-mounted projects. Empanelled vendors also must furnish operation and maintenance (O&M...

March 20, 2023

Tenders and Auctions

Gujarat Invites Bids to Procure 500 MW of Wind Power with Greenshoe Option

Gujarat Urja Vikas Nigam (GUVNL) has invited bids to procure power from 500 MW of grid-connected wind projects (Phase V) with a greenshoe option of an additional capacity of up to 500 MW. The last day to submit the bids online is ...

March 17, 2023

Rooftop

MSMEs Adopt Solar Readily If Savings on Power Bills Cover EMI Cost: Interview

Small businesses are open to adopting rooftop solar if loan repayment is not an additional burden and is equal to their savings on electricity bills. Entities in the commercial and industrial (C&I) segment are increasingly mov...

March 17, 2023

Magazine

DON'T MISS AN ISSUE!

Mercom Cleantech Magazine

Get Your Copy Today!

magazines

Latest News

thumbnail
Maharashtra Approves Tariffs for 8.7 MW of Solar Power Under KUSUM Program

The Maharashtra Electricity Regulatory Commission (MERC) has adopted tariffs of ₹3.28 (~$0.039)/kWh, ₹3.29 (~$0.039)/kWh, and ₹3.30 (~$0.040)/kWh for the procurement of 8.7 MW of solar power on a long-term basis. The Commission...

March 21, 2023

thumbnail
Brookfield to Aquire KKR’s 50% Stake in Renewable Developer X-Elio

Global investment firm Kohlberg Kravis Roberts (KKR) has agreed to sell 50% of its stake in renewable developer X-ELIO to its joint venture partner Brookfield Renewable. Financial details were not disclosed. Since KKR’s...

March 21, 2023

thumbnail
NTPC’s Subsidiary Will Develop Renewable Projects for IndianOil Refineries

NTPC Limited’s wholly owned subsidiary, NGEL, has entered into a joint venture agreement with Indian Oil Corporation (IOCL) to develop renewable energy projects that can meet round-the-clock power requirements to meet the...

March 21, 2023

thumbnail
Constant Climate-Centric Funding Can Limit Global Temperature Under 1.5°C 

Financial support from developed economies to developing nations which is a critical enabler of climate action has been inadequate, said scientists in the latest Intergovernmental Panel on Climate Change (IPCC) report...

March 21, 2023

thumbnail
India Voices Concern over Europe’s Carbon Tariff Measure at WTO

India has expressed concern about the carbon border measures proposed by the European Union (EU) at a recent meeting of the World Trade Organization’s (WTO) Committee on Trade and Environment. Presenting a paper on the increasing...

March 21, 2023

thumbnail
JSW and Greenko Win Karnataka’s Bid for 1 GW of Pumped Storage Projects

JSW Neo Energy (JSW Energy) and Greenko KA 01 IREP (Greenko) have won the Power Company of Karnataka’s (PCKL) auction to supply 1 GW of energy for 8 hours daily from pumped hydro storage projects providing continuous 5-hour...

March 21, 2023

thumbnail
Sterling and Wilson Bags BoS Package Tender for 1.2 GW Solar Projects

Sterling and Wilson Renewable Energy, the solar engineering, procurement, and construction (EPC) arm of Shapoorji Pallonji Group, won NTPC’s tender for the balance of system (BOS) package to develop 1.2 GW (4*300 MW) of solar...

March 21, 2023

thumbnail
Indian Oil Floats O&M Tender for 8 MW Solar Project in Ahmedabad

Indian Oil Corporation (IOCL) has invited bids for the operation and maintenance (O&M) of an existing 8 MW solar power project at the LPG bottling plant at Sanand in Ahmedabad for five years. The last date to submit the bids...

March 21, 2023

thumbnail
IIT Mandi Creates Low-Cost Method for Solar Cell Metal Oxide Layers

Researchers at the Indian Institute of Technology Mandi (IIT Mandi) have claimed a breakthrough in producing metal oxide layers for use in advanced architecture silicon solar cells using a cost-effective method. This innovative...

March 21, 2023

thumbnail
Government Allows NTPC to Invest Over 30% of Net Worth in its Green Arm

The government has allowed NTPC to invest in its subsidiary, NTPC Green Energy (NGEL), beyond the limit allowed for a ‘maharatna’ central public sector enterprise (CPSE). The extant guidelines prescribe a ceiling of 30% of a...

March 21, 2023

MORE NEWS