TNERC Proposes Changes In Deviation Settlement Norms For Electricity

TNERC Proposes Changes In Deviation Settlement Norms For Electricity

The Tamil Nadu Electricity Regulatory Commission (TNERC) has developed a draft regulation to change the deviation settlement policy for solar and wind power generators. The new draft regulation is named TNERC (Forecasting, Scheduling and Deviation Settlement and related matters for wind and solar generation) Regulations, 2023.

It aims to repeal the existing 2019 Regulations in the matter. The proposed regulation aims to amend the norm related to Qualified Coordinating Agency (QCA). The new norms propose the establishment of only a single QCA against the practice of more than one such body in a state.

QCA is an agency appointed by the Wind or Solar Energy Generators connected to a Pooling Sub-Station or by an -5 – individual Generator connected directly to a sub-station or a single agency appointed by the majority of the State’s Wind or Solar Energy Generators. It comes after the Central Electricity Regulatory Commission (CERC) changed its norms in 2022 related to Deviation Settlement Mechanism.

“It is considered that the formula to determine the deviation needs to be corrected. Also, it is felt that multiple QCAs within the State warrant multiple interaction points for SLDC for operationalizing the Scheduling and Deviation Settlement, which is complicated and impractical. Therefore, it is better that a single QCA can be selected by the Wind/Solar Generators separately by following the Majority principles for state-wide aggregation for seamless implementation, an explanatory note on the draft issued by the TNERC said.

The new proposed norms said that the state’s wind and solar energy generators should appoint a single QCA to represent on their behalf and comply with the requirements of forecasting and scheduling separately.

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“Provided that the QCA authorized by the majority of the generators in the State shall be engaged as a single QCA for all the respective wind/solar generators separately in the State and the terms and conditions for engagement of single QCA shall be governed by the mutual agreement between the respective generators and the QCA,” the draft norms read.

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It also added, “Provided that the wind/solar generators who do not wish to avail the services of the single QCA appointed by the majority of the generators shall have the option to avail the services of the SLDC for forecasting and scheduling services.”