Relief to wind, solar generators; electricity regulator delays stricter grid stability rules, Pg13

Key Highlights:

• The Central Electricity Regulatory Commission (CERC) has delayed stricter grid stability norms for wind and solar generators by one year, shifting the implementation to April 2027.
• The norms penalize power firms for deviations between promised and actual electricity generation, aiming to improve grid stability.
• The CERC order outlines a phased plan to align deviation rules for renewable energy generators with those of conventional generators by 2031.
• Renewable energy accounts for over 50% of India’s installed power capacity but less than 30% of actual electricity generation.

Detailed Insights:

• The current relaxed norms for renewable energy recognize the challenges in predicting output due to weather-dependent factors.
• The CERC's phased approach involves a more complex calculation methodology to tighten deviation norms gradually.
• Grid stability concerns have grown with the rapid increase in renewable energy, where forecasting errors can significantly impact the grid.
• The new regulations will assess deviations for wind and solar generators using a blended denominator of available capacity and scheduled generation.
• Solar projects have greater generation predictability than wind projects, leading to different implementation timelines.
• Permissible deviation band for solar and hybrid projects will be narrowed from +/- 10% to +/- 5%, and for wind projects, it will be reduced to +/- 10% from +/- 15%.

Key Concepts Involved:

• Grid Stability: Maintaining a consistent balance between electricity supply and demand to prevent system disruptions.
• Deviation Charges: Financial penalties imposed on power generators for discrepancies between scheduled and actual electricity supply.
• Renewable Energy (RE): Energy derived from natural processes that are replenished at a higher rate than they are consumed.