TNERC Proposes Amendments To Strengthen Grid Stability And Deviation Settlement Mechanism

The Tamil Nadu Electricity Regulatory Commission (TNERC) has released a draft notification seeking comments and suggestions on proposed amendments to the Deviation Settlement Mechanism (DSM) regulations. These regulations govern how electricity buyers and sellers in the state handle deviations from their agreed schedules. This mechanism is essential for maintaining grid stability and ensuring that power generation and consumption are in balance.

The draft regulations will come into effect in April 2024. The main aim is to align the state’s rules with the changing dynamics of the electricity market, especially considering the increasing share of renewable energy sources like solar and wind. These sources introduce uncertainty in generation due to their intermittent nature, and the proposed amendments are designed to ensure the grid remains stable despite this variability.

One of the key changes in the amendments is the extension of the DSM regulations to cover more electricity transactions, including open-access consumers who use the state’s transmission system. The regulations will now apply to a broader group of participants, ensuring that all buyers and sellers adhere to the same standards for managing deviations from their scheduled energy usage.

Another important aspect of the draft amendments is the clarification of the operating frequency range within which deviations are allowed. The regulations set strict limits to prevent grid instability, and any deviation beyond these limits will result in penalties. This move is aimed at maintaining the balance between supply and demand in real-time, ensuring that the grid operates within safe limits.

Additionally, the amendments propose that the settlement of deviation accounts should be carried out weekly. This will enable quicker adjustments and help avoid prolonged imbalances in the power system. The transmission and distribution losses will also be accounted for more accurately, with the State Load Despatch Centre (SLDC) being responsible for publishing the actual losses regularly.

The draft regulations also include provisions for handling cases where entities intentionally misdeclare their electricity schedules for financial gain, a practice known as “gaming.” If such behavior is detected, the Commission will impose penalties on the responsible party to discourage unfair practices.

To ensure transparency and proper implementation, the SLDC will publish weekly reports on its website detailing the over- or under-supply of electricity by different buyers and sellers. These reports will allow stakeholders to monitor the grid’s performance and ensure that the deviation charges are correctly applied.

Another amendment addresses the issue of penalties for continuous deviations. If a buyer or seller continues to deviate from their schedule for more than six consecutive time blocks, they will face an additional charge of 20% on top of the regular deviation charges. This measure is intended to encourage market participants to stay within their schedules and avoid putting unnecessary stress on the grid.

The TNERC is accepting comments and suggestions from stakeholders until November 1, 2024, after which the final amendments will be considered. These changes reflect the growing importance of grid discipline in a power sector increasingly reliant on renewable energy. The new regulations aim to create a more efficient and reliable electricity market in Tamil Nadu, ensuring that the grid remains stable and secure even as the energy landscape evolves.