Punjab Issues Deviation Settlement Regulations for Solar and Wind Generation

Several states have issued similar rules in recent months as concern grows about their ability to integrate more intermittent renewable energy generation

March 19, 2018


The Punjab State Electricity Regulatory Commission (PSERC) has issued draft regulations for the forecasting, scheduling, and deviation settlement of solar and wind power generation in the state.

The new rules aim to facilitate the large-scale integration of solar and wind generation capacity into the grid while maintaining its stability and security.

Under the new regulations, PSERC would begin imposing deviation charges on project developers and procurers that do not inject the precise amount of power into the grid that has been allotted to them, with charges issued for both the over-injection and under-injection of power.

The regulations will come into force on the day they are published in the state’s official gazette. Forecasting and scheduling in accordance with the regulations will become effective three months after the date of notification.

PSERC plans to issue a separate notification that will make effective the commercial mechanism for the deviation settlement.

The new regulations are set to apply to all wind and solar energy generators that have a minimum capacity of 5 MW and are connected to the intra-state transmission system. They would also apply to wind and solar energy generators who are connected through pooling sub-stations and are using the power generated for self-consumption or sale within or outside of the state of Punjab.

According to the regulations, wind and solar project developers would be required to appoint a qualified coordinating agency (QCA) to perform meter reading, data collection, and communication. The QCA would also be tasked with coordinating with distribution companies (DISCOMs), state load dispatch centers, and other agencies, as well as overseeing the settlement of deviation charges.

(Source: PSERC)

With the release of the new regulations, Punjab becomes the sixth state after MaharashtraHaryanaAndhra PradeshGujarat, and Tamil Nadu to issue rules for the forecasting, scheduling, and deviation settlement of solar and wind generation.

The announced plans to impose deviation charges come as many states are anticipating challenges to integrating more intermittent renewable energy into the grid.

A sudden surge in India’s planned renewable energy capacity is also prompting many in the industry to question whether India’s transmission infrastructure is equipped to handle the growth.