CERC Asks Karnataka SLDC To Compensate RE Generator For Curtailment

Compensate RE Generator For Curtailment, CERC asks Karnataka SLDC

The Central Electricity Regulatory Commission (CERC), in its latest judgement asked the Karnataka State Load Despatch Centre (SLDC) and other respondents in the case to compensate two solar power generators for curtailment. The order came to the fore when the generators moved to the central commission seeking compensation against the curtailment of renewable power due to orders from the SLDC.

The two petitioners included-Wardha Solar (Maharashtra) Pvt Ltd (WSMPL) and Parampujya Solar Energy Pvt Ltd, the subsidiary of WSMPL. While Parampujya had a 40 MW solar plant, WSMPL had a 350 MW solar plant. 

The petitioners told the CERC that solar power plants enjoy the ‘must run’ privilege as per the Indian Electricity Grid Code (IEFC) and also as per the Karnataka Electricity Grid Code. It said that these mandate the SLDC not to subject such plants to ‘merit order dispatch’ principles. However, it said it received telephonic instructions from the SLDC to back down generation. 

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In its petition, the solar generator asked the CERC to direct SLDC to enforce the ‘must run’ status to the solar generators. It also sought directions for SLDC to stop issuing such instructions to back down to solar power generators. It also asked for compensation due to the curtailment of solar power generation. 

Meanwhile, the CERC asked Grid India to examine the reasons for such orders. Meanwhile, The Grid India examined the issue based on the earlier methodology formulated by APTEL. However, the respondents in the case objected to the calculation methodology, citing ignorance of the unique features. However, the CERC rejected the request. 

“In the instant case, we are of the view that as the methodology for assessment regarding curtailment, attributable to grid security or otherwise, has already been settled by APTEL and Grid India has adopted the same methodology under the present case, there is no question of revisiting the methodology adopted,” the order said. It also approved the curtailment details of Grid India and directed that the curtailment of renewable energy for reasons other than grid security should be compensated.

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Explaining the procedure for compensation, the CERC said, “For the period before 02.08.2021 (date of the APTEL Judgment), during which curtailment instructions were issued for reasons other than for grid security, the renewable energy generator is to be compensated at the rate of 75% of the PPA tariff per unit within 60 days from the date of order. The Respondents shall also pay interest at 9% for the entire period. Curtailment quantum shall be considered as per POSOCO report.”

It also added, “For the period after 02.08.2021 (date of APTEL Judgment) the curtailment of renewable energy for reasons other than grid security shall be compensated at PPA tariff.”