HERC Unveils Regulatory Framework for Resource Adequacy 2024 to Ensure Reliable Electricity Supply and Integrate RE in Haryana

Posted On - 3 December, 2024 • By - King Stubb & Kasiva

Introduction

The Haryana Electricity Regulatory Commission (HERC) has introduced the “Haryana Electricity Regulatory Commission (Framework for Resource Adequacy) Regulations, 2024”.[1] These regulations aim to ensure a reliable electricity supply in Haryana while effectively integrating renewable energy (RE) sources into the state’s energy mix. This initiative is crucial for meeting the growing energy demands of Haryana in a sustainable and reliable manner.  

Explanation (Key Points)

The salient features of the HERC (Framework for Resource Adequacy) Regulations, 2024 are as follows:

  1. Resource Adequacy Framework: The regulations establish a comprehensive resource adequacy framework. This framework includes demand forecasting, generation planning, procurement planning, and compliance monitoring. The framework’s objective is to ensure the state has sufficient generation resources to meet its electricity demand reliably.  
  2. Demand Assessment and Forecasting: The regulations emphasize the importance of accurate demand assessment and forecasting. Distribution licensees are required to forecast demand for different consumer categories using various forecasting methodologies. The licensees must also consider factors like demand-side management, open access, distributed energy resources, electric vehicles, and tariff signals while forecasting demand.  
  3. Generation Resource Planning: The regulations outline the process for generation resource planning. Distribution licensees must assess existing and planned generation resources, including their capacity credit, which refers to the percentage of a resource’s nameplate capacity that can be counted towards resource adequacy requirements. The planning process also considers constraints such as penalties for unmet demand, forced outages, spinning reserve requirements, and emission limits.  
  4. Capacity Crediting of Generation Resources: The regulations introduce a methodology for determining the capacity credit of different generation resources, including wind and solar. This methodology involves analysing the contribution of these resources to meeting peak demand over a specified period.  
  5. Procurement Planning: The regulations guide the procurement of electricity. Distribution licensees are encouraged to use optimization techniques and least-cost modelling to identify the optimal mix of generation resources. The emphasis is on long-term and medium-term procurement agreements to ensure a stable and cost-effective electricity supply.  
  6. Monitoring and Compliance: The regulations establish mechanisms for monitoring and compliance. Distribution licensees are required to commit additional capacities if there is a shortfall in meeting the resource adequacy requirements. Non-compliance may result in penalties.  

Conclusion

The HERC (Framework for Resource Adequacy) Regulations, 2024, are a comprehensive set of rules designed to ensure a reliable and sustainable electricity supply in Haryana. By focusing on demand forecasting, generation planning, procurement planning, and compliance monitoring, these regulations aim to maintain the quality and reliability of electricity supply while promoting the integration of renewable energy sources. The regulations also introduce the concept of capacity credit to accurately assess the contribution of different generation resources in meeting peak demand. Overall, these regulations are expected to enhance the efficiency and sustainability of the electricity sector in Haryana.

[1] https://herc.gov.in/WriteReadData/Orders/Annexures.pdf