MERC First Amendment Regulations 2024 With Improved Forecasting And Scheduling For Solar And Wind Generation

The Maharashtra Electricity Regulatory Commission (MERC) published the Draft MERC Forecasting, Scheduling, and Deviation Settlement for Solar and Wind Generation First Amendment Regulations, 2023, on December 22, 2023. This was accompanied by an Explanatory Memorandum to provide rationale for the proposed provisions. The publication aimed to invite comments, objections, and suggestions from stakeholders by January 22, 2024. A total of 24 stakeholders submitted their views, which were considered by the Commission while finalizing the Regulations​​.

The MERC F&S Regulations, 2018, mandated Renewable Energy Generators, specifically Solar and Wind, to provide advance scheduling to aid real-time grid operations by the Maharashtra State Load Despatch Centre (MSLDC). With experience gained from the implementation of these regulations, the Commission reviewed aspects related to Absolute Error, Accuracy Band, and Deviation Charges, and proposed the Draft MERC F&S First Amendment Regulations, 2023​​.

The stakeholders’ comments and suggestions were diverse. Some stakeholders supported the proposed amendments, while others suggested modifications to various clauses. For example, Reliance Power Limited raised concerns about the proposed changes to the absolute error bands for over-injection and under-injection, arguing that these changes would result in higher Deviation Charges, adversely affecting project viability​​.

The Commission summarized these comments and provided its views in the Statement of Reasons (SOR). It attempted to address all suggestions and provided detailed responses to the major concerns. However, certain suggestions that were outside the scope of the regulations were not elaborated upon​​.

The Commission retained the provisions of the Draft MERC F&S Amendment Regulations, 2023, in the final amendment. The final amendment included detailed modalities for carrying out Trial Mode operations. These provisions aimed to ensure that payments and receipts on account of energy accounting and deviations would be settled based on actual generation. Additionally, the State Load Despatch Centre (SLDC) was tasked with preparing State Deviation Pool Accounts and publishing related statements on its website for transparency​​.

The Commission also specified that during the Trial Mode period, additional bills computed on the basis of scheduled generation would be issued, but the Qualified Coordinating Agencies (QCAs) would not be required to recover and pay deviation charges against these bills. The SLDC was to submit implementation results and supporting data to the Maharashtra State Power Committee (MSPC) quarterly, and the MSPC was to analyze and recommend actions to the Commission as directed​​.

The MERC’s First Amendment to the F&S Regulations, 2024, aims to refine the forecasting, scheduling, and deviation settlement processes for solar and wind generation in Maharashtra. The engagement with stakeholders and the thorough review of their feedback demonstrate the Commission’s commitment to transparent and effective regulation in the renewable energy sector.

Please view the document here for more details.