The Tamil Nadu Electricity Regulatory Commission (TNERC) has implemented several amendments to its Deviation Settlement Mechanism (DSM) regulations. These amendments, titled the “Tamil Nadu Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) (Amendment) Regulations, 2024,” aim to enhance grid discipline and ensure the stability of the power system in light of the rising penetration of renewable energy sources.
The amendments address key operational and regulatory aspects of electricity transactions facilitated through open access within the state. They focus on ensuring fair and disciplined behavior by both buyers and sellers of electricity, including distribution licensees, open access consumers, and generating stations. Certain categories, such as wind, solar, and state-owned hydro generating stations, remain excluded from the DSM.
One of the significant changes involves stricter norms for deviations from scheduled electricity usage. The new rules mandate a limit on deviations, where entities must adhere to their schedules and ensure that any deviation does not persist for more than six consecutive time blocks. Failure to change the sign of deviation within this period will result in additional charges of 20% over the standard deviation charges. This measure seeks to encourage compliance and discourage intentional mismanagement or gaming.
The regulations now include a redefined frequency range for grid operations, tightening the permissible limits to between 49.90 Hz and 50.05 Hz. Deviations outside this range attract stringent penalties, emphasizing the need for entities to operate within the specified frequency band to maintain grid stability.
Another important amendment focuses on penalties for gaming or intentional misdeclaration of schedules by generating companies. If proven, these actions may result in penalties and proceedings initiated by the State Load Dispatch Centre (SLDC). This amendment also requires generating companies to demonstrate their declared capabilities upon request.
The settlement of DSM accounts has been shifted to a weekly basis, with records to be published on the SLDC’s website. Additionally, the regulations outline specific methodologies for allocating transmission and distribution losses and introduce zero charges for deviations due to infirm power injected into the grid before commercial operation dates (COD).
The amendments also seek to align Tamil Nadu’s DSM framework with national practices established by the Central Electricity Regulatory Commission (CERC). For instance, the cap rate for deviation charges for generating stations has been removed, reflecting the rates applicable to interstate transactions. This change protects distribution licensees and consumers from additional financial burdens caused by discrepancies between state and central regulations.
The revised provisions highlight the importance of grid discipline by linking DSM charges to market prices. This integration aims to minimize imbalances and ensure a more stable and secure power system. Furthermore, the amendments exempt hydro generating stations, including run-of-river projects, from the DSM framework, considering their operational dependency on irrigation and SLDC directives.
Overall, these amendments reflect a significant effort to address challenges associated with renewable energy integration, grid discipline, and equitable cost allocation. By implementing these measures, TNERC aims to ensure the safe, secure, and efficient operation of the state’s electricity grid while protecting consumer interests and fostering a more reliable power market.
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