Karnataka Regulator Proposes to Reduce Permissible Deviation for Wind & Solar Projects

The proposed permissible deviation is ±10% compared to the current ±15%


Karnataka Electricity Regulatory Commission (KERC) has issued the draft for KERC (Forecasting, Scheduling, Deviation settlement and related matters for Wind and Solar Generation sources) (First Amendment) Regulations, 2022.

As per the draft, the permissible deviation for all the wind and solar projects will be ± 10%. There must not be any DSM charges if the deviation of generation is within the specified limits of ± 10%. The current permissible deviation for all the wind and solar projects is ± 15%.

The draft is a proposed amendment to the earlier regulation from 2015 issued to facilitate large-scale integration of wind and solar energy while maintaining the grid stability, reliability, and security as planned under the grid code through forecasting, scheduling, and commercial mechanism for deviation settlement of wind and solar generators.

The stakeholders have time to submit their suggestions until September 07, 2022.

Wind and solar generators having Power Purchase Agreements (PPAs) with Electricity Supply Companies (ESCOMs) or directly supplying power to consumers within the state by availing open access for wheeling the power will be liable to pay to Deviation Settlement Mechanism (DSM) pool account for any deviations of the schedules at the rates shown in the following table:DSM Charges In Case of Deviations Beyond the Permissible LimitsBackground

The Commission received requests from various Qualified Coordinating Agencies (QCAs) and generators in the state for non-imposition of DSM charges in case the SLDC issues the curtailment orders.

Further, the Commission also received requests from the QCAs for change in the present methodology for computation of DSM charges by aggregating schedules of different pooling stations to enable larger geographical integration. After realizing the advantage of aggregation, most generators are now inclined to such QCAs having large capacities irrespective of their performance.

It was also submitted that the QCAs being permitted to register for RE generators in their pool without clearing existing dues on account of deviation charges to state pool account are defeating the purpose of forecasting and scheduling framework of KERC Regulations. This further encourages such QCAs to increase the pool size capacity without clearing their existing dues and abiding by compliances, thereby overburdening the State Pool Deviation Account.

Thus, other QCAs are at a considerable disadvantage due to the current QCA-wise aggregation mechanism despite better performance on forecasting at the pooling substation level, timely payments, and compliance with regulations.


If approved, the regulations will apply to all wind generators with a combined installed capacity of 10 MW and above and to all solar generators with an installed capacity of 5 MW and above, at the pooling station or otherwise. This stands true even if they are supplying power to ESCOMs or third-party consumers through open access or for captive consumption through open access within the state.

Forecasts and schedules

Wind and Solar generators, either by themselves or through the QCAs, must furnish forecasts and schedules at 15 minutes time blocks for each pooling station separately to the State Load Despatch Center (SLDC). The scheduling, energy accounting, and deviation monitoring for each pooling substation of wind or solar power generation must be undertaken separately. Accordingly, deviations and penalties will be computed and imposed for each pooling station separately. The QCAs will be responsible for de-pooling charges among generators connected to a pooling station.


Special Energy Meters (SEMs) will be provided at the pooling station of wind and solar power projects at the interface points of State Transmission Utility (STU) or ESCOMs. SEMS will have a provision for recording and storing all the load survey and billing parameters for every 15 minutes interval block period. The monthly metering data must be downloaded and maintained in a database by QCA.

Earlier, Central Electricity Regulatory Commission had issued the new CERC (Deviation Settlement Mechanism and Related Matters) Regulations, 2022. These regulations apply to all grid-connected regional entities and other entities engaged in inter-state purchase and sale of electricity, where the state-level regulations do not exist.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.