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The Maharashtra Electricity Regulatory Commission (MERC) is undergoing a significant amendment in its regulations pertaining to the forecasting, scheduling, and deviation settlement for solar and wind energy generation. This move is in alignment with the ambitious goals set by the Government of India (GoI) to become a carbon-neutral nation by 2070 and achieve 500 GW of renewable energy (RE) capacity by 2030.
The Ministry of Power (MoP), GoI, has been actively contributing to the renewable energy landscape by issuing rules and orders. Notably, the “Renewable Purchase Obligation (RPO) and Energy Storage Obligation Trajectory till 2029-30” Order was notified in July 2022, emphasizing the commitment to renewable energy adoption. The MoP urged State Electricity Regulatory Commissions (SERCs) to align their regulations with these orders, leading to the draft MERC (Renewable Purchase Obligation) (First Amendment) Regulations, 2023.
The Government of Maharashtra (GoM) has a specific focus on ensuring stable daytime electricity for agricultural consumers through decentralized solar power projects. The Maharashtra State Agriculture Energy Distribution Program (MSKVY 2.0) aims to solarize at least 30% of agricultural feeders by 2025, with a target of developing 7000 MW cumulative capacity in decentralized solar projects.
The proposed amendments in the MERC regulations aim to strike a balance among the interests of consumers, Qualified Co-ordinating Agencies (QCAs), RE generators, Distribution Licensees, Maharashtra State Load Dispatch Centre (MSLDC), and other stakeholders. The focus is on refining the forecasting, scheduling, and deviation settlement mechanisms to enhance the efficiency and reliability of renewable energy integration into the grid.
One key aspect under scrutiny is the formulation of the Absolute Error, Error Band, and Deviation Charges for solar and wind generators. The existing regulations compute Absolute Error as the difference between Scheduled Generation and Actual Generation, expressed as a percentage of Available Capacity. The Commission has actively sought input from stakeholders on this matter, with a specific emphasis on the formula for calculating Absolute Error.
In response to suggestions, the Commission decided not to alter the Absolute Error formula, emphasizing the complexity of applying a common error band based on Capacity Utilization Factor (CUF) due to variations in plant characteristics. The proposed amendments aim to reinforce existing provisions to prevent gaming in the system and maintain grid stability.
The analysis of RE sources in Maharashtra reveals that, as of August 2023, approximately 8,142 MW of RE capacity is under the framework of the MERC regulations. However, the focus of the study considers data up to August 2022, and it highlights the need for suitable error bands and deviation charges to control deviations and ensure grid stability.
Addressing concerns raised by Distribution Licensees, the proposed amendments suggest a continuation of existing limits for RE Deviation Charges in case of under- or over-injection of power. The emphasis is on maintaining a balance between encouraging accurate forecasting and penalizing deviations to ensure grid security.
Additionally, the amendments introduce changes related to deviation charges for generators connected to the Intra-State Transmission network and selling or consuming power outside Maharashtra. The alignment with Central Electricity Regulatory Commission (CERC) regulations ensures consistency and clarity in deviation accounting for intra and inter-state transactions.
Stakeholders, including power distribution companies and RE generators, are encouraged to proactively prepare for the transition to scheduled generation-based settlement. The amendments also foresee a three-month period for stakeholders to set up necessary components like metering and communication infrastructure. In conclusion, the proposed amendments by MERC underscore the commitment to achieving the GoI’s renewable energy targets while addressing the complexities of deviation settlement for solar and wind generators. The emphasis on stakeholder engagement and a phased transition reflects a proactive approach to evolving regulatory frameworks in the dynamic renewable energy landscape. |
