MERC First Amendment Regulations 2024 With Improved Forecasting And Scheduling For Solar And Wind Generation

Introduction

The Maharashtra Electricity Regulatory Commission (MERC) has amended its Forecasting, Scheduling, and Deviation Settlement (F&S) Regulations for solar and wind energy generation.[1] These amendments, known as the Maharashtra Electricity Regulatory Commission (Forecasting, Scheduling and Deviation Settlement for Solar and Wind Generation) (First Amendment) Regulations, 2024, aim to improve the integration of renewable energy into the state’s power grid. The changes were made after a thorough review of the existing regulations and extensive public consultation.

Explanation (Key Points)

• Shift to Scheduled Generation Based Settlement: A significant change is the shift from actual generation-based to scheduled generation-based settlement. This means that renewable energy generators will be paid based on their scheduled generation rather than their actual output. This is intended to incentivize accurate forecasting and scheduling, which are crucial for grid stability.
• Trial Mode for Scheduled Generation Based Settlement: To ensure a smooth transition, the scheduled generation-based settlement will be implemented in a trial mode for a period of twelve months. During this trial period, the existing actual generation-based settlement will continue in parallel. This will allow stakeholders to adapt to the new system and identify any potential issues before full implementation.
• Revised Definitions: The amendments also include revised definitions of key terms such as “Contract Rate” and “Trial Mode.” The definition of “Contract Rate” now clarifies how it is calculated in cases of multiple power purchase/sale agreements. The definition of “Trial Mode” provides more details on the operation of the trial period.
• Applicability to MSKVY Projects: The regulations will now apply to solar energy projects set up under the Mukhyamantri Sour Krushi Vahini Yojana (MSKVY). This is a significant step as it brings a large number of decentralized solar projects under the purview of the regulations, further promoting grid integration of renewable energy.
• Review of Regulations: The Commission has clarified that it will review the regulations, including the formulation of Absolute Error, Absolute Error Bands, and Deviation Charges, at the end of each control period specified in the MERC (Multi Year Tariff) Regulations, 2019, or at any other time it deems necessary. This ensures that the regulations remain relevant and effective in the face of changes in the electricity sector.
• Other Changes: The amendments also include several other changes such as the introduction of a dynamic web-based application for scheduling and deviation settlement, provisions for dealing with mis-declaration of available capacity, and changes in the metering arrangements.

Conclusion

The amendments to the MERC’s F&S Regulations represent a significant step towards improving the integration of renewable energy into Maharashtra’s power grid. The shift to scheduled generation-based settlement, the trial mode implementation, and the other changes are all designed to promote accurate forecasting and scheduling, which are essential for grid stability and the growth of renewable energy in the state.

[1] https://merc.gov.in/wp-content/uploads/2024/07/Approved-SOR-to-First-Amendment-to-FS-Regulations-2024.pdf