India’s Central Electricity Regulatory Commission (CERC) has issued new regulations aimed at ensuring grid security by limiting frequency fluctuations within the operating band. The regulator has set the rate of charges for deviation during a given time block to be determined by the higher of two weighted averages. The first being the weighted average clearing price of the day ahead market segments of all power exchanges for that time block, and the second being the weighted average clearing price of the real-time market segments of all power exchanges for that time block. The rate will not exceed ₹12/ kWh until further notice.
To facilitate the participation of high variable cost generators, the CERC has approved the proposal to introduce a High-Price Day Ahead Market (HP-DAM) in the Integrated Day Ahead Market (I-DAM) segment. However, the CERC reserved the order on a similar proposal to introduce HP-DAM for Power Exchange India. The commission has directed all power exchanges to redesign their bidding software to facilitate members’ ability to quote the price of up to ₹10/kWh for all contracts and up to ₹20/kWh in the HP-DAM segment.
The new regulations come after the grid frequency dangerously deviated away from the acceptable range of 49.90-50.05 Hz, oscillating between 50.5 Hz and 49.41 Hz on December 20. In February, the CERC hiked monetary incentives for both generators and procurers to maintain the grid frequency in the safe range.
The CERC has modified its order of February 6, 2023, directing that the normal rate of charge for deviation will be equal to the higher of the weighted average clearing price of the day ahead market segments of all power exchanges or the weighted average clearing price of the real-time market segments of all power exchanges for a time block. However, for a seller whose bid is cleared in the HP-DAM, the normal rate of deviation charges will be equal to the highest of the weighted average clearing price of the HP-DAM market segments, the weighted average clearing price of the day ahead market segments, or the weighted average clearing price of the real-time market segments of all power exchanges. The directions came into effect from midnight on April 10, 2023.
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 has issued new regulations to limit frequency fluctuations and ensure grid security. The regulations set a rate of charges for deviation and introduce a High-Price Day Ahead Market (HP-DAM). Read on to learn more about the CERC's directives and their impact on India's power sector.){kind=link}