Madhya Pradesh’s Renewables Revolution: Navigating the Second Amendment for Wind and Solar Projects

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Representational image. Credit: Canva

The Madhya Pradesh Electricity Regulatory Commission has introduced the Second Amendment to the Regulation on Forecasting, Scheduling, Deviation Settlement Mechanism, and Related Matters of Wind and Solar Generating Stations in 2018. This amendment, termed as AG-44(ii) of 2024, aims to address various aspects concerning renewable energy generation within the state.

The regulation encompasses several key provisions affecting the operation and management of wind and solar power projects, including hybrid projects combining both energy sources. One significant aspect is the definition of solar wind hybrid generation projects, which are projects that harness power from both wind and solar sources, either with or without energy storage. It mandates that at least 33% of the total contracted capacity must be from one resource, either wind or solar.

Furthermore, the regulation defines important terms such as “polling station,” referring to substations where the pooling of energy from individual wind or solar generators occurs. It clarifies that in cases where separate polling stations aren’t available, the substation of the distribution company, State Transmission Utility (STU), or Central Transmission Utility (CTU) will serve as the polling station.

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Moreover, the regulation outlines guidelines for the location and connection of solar wind hybrid projects. It allows for these projects to be located at the same or a maximum of two different locations, requiring dedicated feeders for grid connection if not co-located.

The applicability of the regulation extends to sellers involved in transactions facilitated through short-term, medium-term, or long-term open access within the state. It covers wind power generators with a combined installed capacity of 10 MW and above, solar power generators with a capacity of 5 MW and above, and hybrid projects with a capacity of 10 MW and above. Additionally, it applies to projects selling power outside the state with a combined installed capacity of 1 MW and above.

One crucial aspect addressed in the amendment is the utilization of funds accumulated in the Renewable Energy Deviation Settlement Mechanism (DSM) pool account. The commission is empowered to issue orders and practice directions concerning the procedure for utilizing these funds, in line with the provisions of the regulation and the governing act.

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Furthermore, the regulation mandates the State Load Dispatch Centre (SLDC) to establish a detailed procedure for forecasting, scheduling, and computing deviation charges for solar wind hybrid projects in Madhya Pradesh. Until such procedures are approved by the commission, SLDC will compute deviation charges based on aggregate schedule and meter data from pooling stations.

Overall, the Second Amendment to the Regulation on Forecasting, Scheduling, Deviation Settlement Mechanism, and Related Matters of Wind and Solar Generating Stations in Madhya Pradesh seeks to streamline the operation of renewable energy projects, ensuring efficient integration into the state’s electricity grid while maintaining regulatory oversight and compliance.

Please view the document here for more details.


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