Cabinet approves MoU in the area of large-scale Grid Integration of Renewable Energy

The MoU envisages promoting information exchanges in the areas of Renewable Energy integration regulations and balancing using gas, storage, and demand-side approaches, energy imbalance markets

The Union Cabinet chaired by the PM Narendra Modi has approved for signing of a Memorandum of Understanding (MoU) between Forum of Regulators (FOR) and the National Association of Regulatory Utility Commissioners (NARUC) in the area of large-scale Grid Integration of Renewable Energy.

The MoU provides the following broad areas for cooperation in the area of large scale integration of renewable energy:

1. Design of frameworks for Renewable Energy procurement-international Experience.
2. Regulatory interventions for renewables development, such as state and national   Renewable   Purchase   Obligations   (RPOs),   Renewable   Energy Certificate (REC) framework
3. Load forecasting techniques and processes.
4. Contracting/Power Purchase Agreements.
5. Renewables forecasting methods and how Renewable Energy forecasts are used by operators.
6. Renewable Energy integration – regulations and balancing using gas, storage, and demand-side approaches; energy imbalance markets.
7. Regulatory framework for ensuring grid discipline by generators including deterrents in the form of penalty for breach of discipline.
8. Ancillary services including physical mechanisms, regulations and markets.
9. Data analysis and cost-benefit analysis for regulatory decision-making.

The MoU envisages promoting information exchanges in the areas of Renewable Energy integration regulations and balancing using gas, storage, and demand-side approaches, energy imbalance markets. It will enhance the efforts of India’s power system for better management of large-scale integration of Renewable Energy into the power grid.

The Forum of Regulators was constituted by the Ministry of Power in, 2005 under provisions of section 166(2) of the Electricity Act, 2003 with the primary objective of harmonization of regulations in the power sector framed by the Central Electricity Regulatory Commission (CERC), State Electricity Regulatory Commissions (SERCs) and Joint Electricity Regulatory Commissions (JERCs).