The Central Electricity Regulatory Commission (CERC) has issued regulations to limit frequency fluctuations within the operating band in the interest of grid security.

The regulator has set the normal rate of charges for deviation for a given time block.

This rate will be determined by taking the higher of two weighted averages: the weighted average clearing price (ACP) of the day ahead market segments of all power exchanges for that time block, or the weighted average ACP of the real-time market segments of all power exchanges for that time block.

However, this rate will not exceed ₹12 (~$0.15)/ kWh until further notice.

In February, the CERC had hiked monetary incentives for both generators and procurers to maintain the grid frequency in the safe range of 49.95-50.05 Hz.

The grid frequency had deviated dangerously away from the acceptable range of 49.90 -50.05 Hz. It oscillated between 50.5 Hz and 49.41 Hz on December 20.

The order further approves the proposal to introduce High-Price Day Ahead Market (HP-DAM) in the Integrated Day Ahead Market (I-DAM) segment to facilitate the participation of high variable cost generators.

The CERC reserved the order on a similar proposal to introduce HP-DAM for Power Exchange India. The Commission has directed all power exchanges to redesign their bidding software to facilitate members’ ability to quote the price of up to ₹10 (~$0.12)/kWh for all contracts and up to ₹20 (~$0.24)/kWh in the HP-DAM segment.

Modifying its order of February 6, 2023, it directed that the normal rate of charge for deviation will be equal to the higher of the weighted average ACP of the day ahead market segments of all the power exchanges or the weighted average ACP of the real-time market segments of all the power exchanges for a time block.

However, for a seller whose bid is cleared in the HP-DAM, the normal rate of deviation charges will be equal to the highest of the weighted average ACP of the HP-DAM market segments or the weighted average ACP of the day ahead market segments or the weighted average ACP of the real-time market segments of all the power exchanges.

The directions will come into effect from midnight of April 10, 2023.

Recently, the Commission directed all power exchanges to redesign their bidding software to allow members to quote prices within a specified range for different types of contracts.

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