APSERC Issues Draft DSM Regulations 2025 To Strengthen Grid Discipline In Arunachal Pradesh

The Arunachal Pradesh State Electricity Regulatory Commission has issued a draft of the Deviation Settlement Mechanism and Related Matters Regulations for 2025. The purpose of these regulations is to make sure that all grid users in the state follow their scheduled drawal and injection of electricity so that the power system remains secure and stable. The framework creates a commercial process for handling deviations whenever an entity injects or draws more or less electricity than what was previously scheduled. These rules apply to all Intra-State Entities, including buyers and sellers with a generating capacity of one megawatt and above. This covers renewable energy generators, open access generators, and captive generators, except those that operate in-situ. The State Load Despatch Centre has been given the responsibility to manage deviations and carry out all related calculations, including the assessment of deviation charges.

All State Entities must follow the schedule defined under the State Grid Code and must share the details of their energy exchange contracts with the State Load Despatch Centre. These details include the contract rate and the nature of energy exchange. The draft defines deviation as the difference between the actual injection or drawal and the scheduled generation or drawal in a particular time block. For a general seller, which is any generator not classified as wind, solar, hybrid, run-of-river, or municipal solid waste, the charges for deviation depend on the grid frequency and the Reference Charge Rate. If a general seller injects more power than scheduled and the frequency remains between 49.90 Hz and 50.05 Hz, it can receive payment at the Reference Charge Rate when the frequency is between 49.97 Hz and 50.03 Hz. When the frequency crosses 50.03 Hz and moves toward 50.05 Hz, the receivable amount reduces gradually and becomes half of the Reference Charge Rate when the frequency reaches 50.05 Hz.

For wind, solar, and municipal solid waste generators, the deviation charges are not linked to the grid frequency. Instead, they are based on their contract rate and their defined volume limits. For municipal solid waste generators, the charges depend on the percentage of deviation from the schedule. For buyers, deviation charges depend on both the grid frequency and the Normal Rate of charges. Their charges are also linked to their specific volume limits. The Normal Rate is calculated by taking the highest value out of three different methods. The primary calculation uses the weighted average Area Clearing Price in the Integrated Day Ahead Market and the Real Time Market of all power exchanges. One of the options also adds a component related to ancillary service charges.

The State Load Despatch Centre will manage a State Deviation Pool Account, where all deviation payments and late payment surcharges will be deposited. The Centre will issue a State Deviation Settlement Account statement once every month, along with a weekly statement showing the charges for deviations. The regulations give high priority to the payment of deviation charges. All entities must pay within ten days from the date of issue of the statement. If they fail to pay on time, they will have to pay a late surcharge of 0.04 percent for each day of delay. The Commission has clearly defined gaming as any intentional mis-declaration of capacity or drawal schedule to gain unfair commercial benefits. It has reserved the authority to take action against such behaviour. The Commission also holds the power to relax or modify any part of these regulations when required.