New rules: Availability-based rate for renewable power

  • The new regulations for scheduling solar and wind power for transmission through the grid could escalate prices.

  • If the power generator deviates from its schedule and under supplies, it would be liable for a penalty. The penalty amount, which would be calculated as per unit energy shortfall, will go in a pool - Renewable Regulatory Fund (RRF). The amount from this fund would be shared among all the states buying from that power plant in the ratio of their peak demand during the previous month. States defaulting on buying renewable power as prescribed under their renewable purchase obligation (RPO), too, would have to pay a penalty.

  • The Central Electricity Regulatory Commission (CERC) has proposed norms for forecasting, scheduling and imbalance handling of renewable power. It says that the power generator would be paid for the energy supplied to the grid and not the capacity tied up.

  • The wind or solar power generator would have to use tools to forecast power generation from its plant and then schedule power sale accordingly in the grid.

  • "Renewable Energy Management Centres (REMCs) are being established and these would be equipped with advanced forecasting tools... the buyer would be paying tariff for the energy scheduled to the wind/solar energy generators," said the draft regulations. The scheduling would be done by regional load despatch centres (RLDCs).

  • The industry finds the proposal not in sync with the government's target to add 1.75 gW of renewable power by 2022.

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