Suo Motu Petition No. 209/2011 and Petition No. 2/MP/2012. Case: 1. In Re: U.P. Power Corporation Ltd. Shakti Bhawan, Lucknow and Ors., 2. Indian Wind Energy Association, New Delhi Vs National Load Despatch Centre, New Delhi. Central Electricity Regulatory Commission

Case Number:Suo Motu Petition No. 209/2011 and Petition No. 2/MP/2012
Party Name:1. In Re: U.P. Power Corporation Ltd. Shakti Bhawan, Lucknow and Ors., 2. Indian Wind Energy Association, New Delhi Vs National Load Despatch Centre, New Delhi
Counsel:For Appellant: Shri Padmanatshan, IWEA in Petition No. 2/MP/2012 and Shri G. Upadhyay, Director, MNRE, Sri K.J. Bhijva, SLDC, GETCO, Shri Anurag Misra, SLDC, MP and Shri K. Amaresaur, APTRANSCO in Suo Motu Petition No. 209/2011 and For Respondents: Ms Minaxi Garg, NLDC, Shri Shailendra Verma, NLDC, Shri V.K. Agarwal, NLDC and Shri H.K. Chawala,...
Judges:Dr. Pramod Deo, Chairperson, Shri S. Jayaraman, Member, Shri V.S. Verma, Member and Shri M. Deena Dayalan, Member
Issue:Electricity Law
Judgement Date:January 16, 2013
Court:Central Electricity Regulatory Commission
 
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Order:

  1. Clauses (5) and (7) of Complementary Commercial Mechanism at Annexure-I to the Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2010, as amended from time to time (hereinafter "Grid Code") provide as under:

  2. The wind generators shall be responsible for forecasting their generation upto an accuracy of 70%. Therefore, if the actual generation is beyond +/- 30% of the schedule, wind generator would have to bear the UI charges. For actual generation within +/- 30% of the schedule, no UI would be payable/receivable by Generator, The host state, shall bear the UI charges for this variation, i.e. within +/- 30%. However, the UI charges borne by the host State due to the wind generation, shall be shared among all the States of the country in the ratio of their peak demands in the previous month based on the data published by CEA, in the form of a regulatory charge known as the Renewable Regulatory Charge operated through the Renewable Regulatory Fund (RRF). This provision shall be applicable with effect from 1.1.2011, for new wind farms with collective capacity of 10 MW and above connected at connection point of 33 KV level and above, and who have not signed any PPA with states or others as on the date of coming into force of this IEGC. Illustrative calculations in respect of above mechanism are given in Appendix.

  3. A maximum generation of 150% of the schedule only, would be allowed in a time block, for injection by wind, from the grid security point of view. For any generation above 150% of schedule, if grid security is not affected by the generation above 150%, the only charge payable to the wind energy generator would be the UI charge applicable corresponding to 50- 50.02 HZ.

  4. In case of solar generation no UI shall be payable/receivable by Generator. The host state shall bear the UI charges for any deviation in actual generation from the schedule. However, the net UI charges borne by the host State due to the solar generation, shall be shared among all the States of the country in the ratio of their peak demands in the previous month based on the data published by CEA, in the form of regulatory charge known as the Renewable Regulatory Charge operated through the Renewable Regulatory Fund as referred to in clause 5 above. This provision shall be applicable, with effect from 1.1.2011, for new solar generating plants with capacity of 5 MW and above connected at connection point of 33 KV level and above and who have not signed any PPA with states or others as on the date of coming into force of this IEGC. Illustrative calculations in respect of above mechanism are given in Appendix.

    As per the above quoted provisions of the Grid Code, the UI charges borne by the host State due to wind generation within certain limits and due to solar generation shall be shared among all the States in the country in the ratio of their peak demands in the previous month based on the data published by the Central Electricity Authority in the form of regulatory charge known as Renewable Regulatory Charge operated through the Renewable Regulatory Fund (RRF) w.e.f. 1.1.2011. The Commission vide Notification No. L-1/18/2010-CERC dated 14.1.2011 specified the revised date of implementation of Renewable Regulatory Charge and Renewable Regulatory Funds with effect from 1.1.2012 in order to put in place the procedure and mechanism required for their implementation. The Commission in its order dated 18.2.2011 had accorded approval to the "Procedure for implementation of the mechanism of Renewable Regulatory Fund" submitted by the National Load Despatch Centre and had directed National Load Despatch Centre to arrange for mock exercise as per the Detailed Procedure with effect from 1.7.2011. The Detailed Procedure provides that the wind farms and solar generating plants shall furnish the information regarding their connectivity to the Regional Power Committee, Regional Load Despatch Centres and National Load Despatch Centres through their respective State Load Despatch Centres who shall submit 15 minute block-wise data of scheduled and actual generation from the wind...

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