Karnataka Electricity Regulatory Commission Introduces Draft Framework For Resource Adequacy Regulations, 2024

The Karnataka Electricity Regulatory Commission (KERC) recently introduced new draft regulations aimed at ensuring Resource Adequacy (RA) within the state’s electricity sector. These regulations, effective upon their notification in the Official Gazette, are designed to oversee the planning of generation resources to reliably meet projected demand while complying with specified reliability standards.

The objective of these regulations is clear: to establish a comprehensive framework for planning generation resources that will efficiently serve electricity demand at the lowest cost and in a secure manner. This involves various steps, including demand assessment and forecasting, generation resource planning, power procurement planning, and monitoring and compliance.

These regulations apply to a range of stakeholders within Karnataka’s electricity sector, including generating companies, distribution licensees, State Load Despatch Centre, State Transmission Utility, Transmission licensees, and other grid-connected entities.

One critical aspect addressed by these regulations is demand assessment and forecasting. Distribution licensees are tasked with accurately assessing and forecasting electricity demand using comprehensive data and scientific modeling tools. This includes hourly or sub-hourly assessments for short and long-term planning horizons, considering factors like historical data, policies, drivers, and load diversity.

After demand assessment, the regulations require generation resource planning to identify existing and required resources to meet forecasted demand. This involves assessing capacity credits of renewable resources like solar and wind, considering their intermittent nature and historical profiles.

The regulations emphasize the importance of maintaining Resource Adequacy (RAR) to ensure a reliable supply of electricity. Distribution licensees must develop Long-Term and Short-Term Distribution Resource Adequacy Plans (LT-DRAP and ST-DRAP) aligned with specified reliability standards. This includes securing an optimal mix of generation resources through least-cost modeling and optimization techniques to integrate renewable energy sources efficiently.

Renewable energy integration is a key focus, with provisions to fulfill Renewable Purchase Obligations (RPOs) and consider technologies like energy storage for round-the-clock renewable energy supply. Storage technologies play a vital role in balancing intermittent renewable generation and ensuring a stable energy supply.

The outcome of Resource Adequacy Studies will guide the capacity mix required for future electricity demand, incorporating existing capacities, planned additions, and necessary resources for utility growth.

These regulations represent a proactive approach by the Karnataka Electricity Regulatory Commission to ensure a reliable and cost-effective electricity supply while promoting renewable energy integration. They underscore the importance of robust planning and compliance within the evolving energy landscape, setting standards for other states to follow in optimizing their generation resource portfolios. By prioritizing Resource Adequacy, Karnataka aims to enhance energy security and sustainability for its citizens while embracing the transition towards cleaner energy sources.

Please view the document here for more details.