TNERC Draft New Regulation (Forecasting, Scheduling, And Deviation Settlement) For Solar and Wind Energy Generation

Representational image. Credit: Canva

In a significant move towards fostering the integration of wind and solar energy into Tamil Nadu’s power grid, the Tamil Nadu Electricity Regulatory Commission (TNERC) has proposed new regulations for forecasting, scheduling, and deviation settlement in the sector. These regulations, slated for issuance in 2023, replace the existing 2019 regulations, to ensure grid stability and security while harnessing the potential of renewable energy sources.


Application Scope

The forthcoming regulations are set to apply to all Wind and Solar Energy Generators in Tamil Nadu, except for Rooftop PV Solar power projects with a capacity of less than 1 MW. Whether connected to the Intra-State Transmission System or Distribution System, including those linked through pooling substations, these generators must adhere to the provisions outlined in the regulations, regardless of whether they utilize the generated power for self-consumption or sale within or outside the state.


Qualified Coordinating Agency (QCA)

A noteworthy aspect of the proposed regulations is the requirement for Wind and Solar Energy Generators to appoint a single Qualified Coordinating Agency (QCA) to represent their interests in matters related to forecasting and scheduling. This approach streamlines communication and ensures compliance with forecasting and scheduling requirements.

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However, the regulations also allow for flexibility. Wind and solar generators who do not wish to engage the services of the single QCA appointed by the majority of the generators have the option to avail the services of the State Load Dispatch Center (SLDC) for forecasting and scheduling services.

Deviation Settlement Mechanism

One of the key features of the new regulations is the establishment of a Deviation Settlement Mechanism. Under this mechanism, the sale of power within Tamil Nadu by Wind and Solar Energy Generators connected to the Intra-State Transmission Network will be settled by the Procurers based on their actual generation. Deviations from the scheduled generation will result in Deviation Charges being levied on the generator by the regulations.

State Deviation Pool Account

To ensure transparency and accountability, the Deviation Charges for deviations in scheduled generation within Tamil Nadu will be payable by the Generator to the “State Deviation Pool Account (Wind and Solar)” through the SLDC. Notably, the total deviation charges remitted into this account will be capped at a Ceiling Rate of 5 paise per unit multiplied by the total annual generation at the respective pooling substations or the total generated unit’s statewide aggregation.

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Forecasting Services Charges

In addition to Deviation Charges, the regulations mandate forecasting service charges based on the installed capacity of wind/solar generating stations. These charges, along with applicable taxes as agreed upon by Generators and QCA or as ordered by the Commission, will be remitted to the SLDC by the generators, who, in turn, will pay the charges towards forecasting services to the QCA.

Inter-State Transactions

For the sale of power outside Tamil Nadu by Wind and Solar Energy Generators connected to the Intra-State Transmission system or Distribution system, the Procurers will settle the transactions based on their scheduled generation. Inter-state transaction schedules will not be aggregated with intra-state transactions, ensuring proper accounting and compliance.

The Tamil Nadu Electricity Regulatory Commission’s proposed regulations for Wind and Solar Energy Generators represent a significant step forward in facilitating renewable energy integration into the state’s grid. These regulations not only provide a structured framework for forecasting, scheduling, and deviation settlement but also aim to ensure fair compensation for energy deviations and the sustainability of the grid. As Tamil Nadu continues to embrace renewable energy sources, these regulations will play a pivotal role in shaping the future of its energy landscape.

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