Maharashtra Issues Final Deviation Settlement Regulations for Solar and Wind Power

The Maharashtra Electricity Regulatory Commission (MERC) has issued final regulations for the forecasting, scheduling, and deviation settlement for solar and wind power generation in the state.

With this, Maharashtra has joined Uttar Pradesh, Punjab, TelanganaHaryanaAndhra PradeshGujarat, and Tamil Nadu in issuing regulations for the forecasting, scheduling, and deviation settlement of solar and wind generation.

According to the new regulations, MERC would impose the deviation charges on project developers and procurers for under as well as over injection of power into the grid. The regulations would apply to all the wind and solar energy generators having a minimum capacity of 5 MW connected to the intra-state transmission system. This would also apply to those who are connected through pooling sub-stations and are using the power generated for self-consumption or sale within or outside the state of Maharashtra.

The final deviation charges are less than what was initially proposed by MERC.

Maharashtra Issues Final Deviation Settlement Regulations for Solar and Wind Power

According to the regulations, the wind and solar project developers will be required to appoint a qualified coordinating agency (QCA) for meter reading, data collection and communication. The QCA would also ensure coordination with the distribution companies (DISCOMs), the state load dispatch centers and other agencies, as well as the settlement of deviation charges.

For the sale or self-consumption of power within the state of Maharashtra, if the actual injected generation of a stand-alone generator or the aggregate of such generation at a pooling sub-station differs from the scheduled generation, the deviation charge for the excess or shortfall will be payable by the QCA to the state deviation settlement mechanism (DSM) pool.

The sudden surge in planned renewable capacity of the country has many in the industry wondering if India’s transmission infrastructure is equipped to handle the influx of renewable sources of power generation.

One after another, the states are announcing the addition of deviation charges, anticipating challenges in the integration of new intermittent energy sources to the grid. It will eventually depend on solar and wind companies to improve their forecasting capabilities to avoid taking up additional costs by under or over producing.

Saumy Prateek Saumy is a senior staff reporter with covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.