MERC Constitutional First Amendment Provisions of 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. It was accompanied by an explanatory memorandum to justify the proposed regulations. The publication invited stakeholders to submit their comments, objections and suggestions by January 22, 2024. A total of 24 stakeholders submitted their views, which were taken into consideration by the Commission while finalizing the regulations.

The MERC F&S Regulations, 2018 directed renewable energy generators, particularly solar and wind, to provide advance scheduling to support real-time grid operations by the Maharashtra State Load Despatch Centre (MSLDC). In light of the experience gained during the implementation of these regulations, the Commission reviewed the 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 mixed. Some stakeholders supported the proposed changes, while others suggested modifications to various clauses. For example, Reliance Power Limited raised concerns over the proposed changes in the absolute error limits for over- and under-injection, arguing that these changes would result in higher deviation charges, adversely affecting the project’s feasibility.

The Commission summarised these comments and set out its views in a Statement of Reasons (SOR). It attempted to take into account all the suggestions and provided detailed responses to the main concerns. However, some suggestions that went beyond the scope of the regulations were not developed.

The Commission has retained the provisions of the Draft MERC F&S Amendment Regulations, 2023 in the final amendment. The final amendment contained detailed rules for conducting trial operations. These provisions sought to ensure that payments and receipts for energy and deviation settlements are settled on the basis of actual generation. Further, the State Load Dispatch Centre (SLDC) was tasked with preparing State Deviation Pool Accounts and publishing related statements on its website to ensure transparency.

The Commission also specified that during the Trial Mode period, additional bills would be issued based on the scheduled generation, but the Qualified Coordinating Agencies (QCAs) would not be required to recover and pay any deviation charges from these bills. The SLDCs were to submit the implementation results and supporting data to the Maharashtra State Power Committee (MSPC) on a quarterly basis, and the MSPC was to review and recommend action to the Commission as directed.

The MERC’s first amendment to the F&S Regulations, 2024, aims to improve forecasting, planning and deviation settlement processes for solar and wind generation in Maharashtra. Stakeholder engagement and in-depth review of their views demonstrate the Commission’s commitment to transparent and effective regulation in the renewable energy sector.

For more details, please see the document here.

Related