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7. Clause 6.4 (21)The meters used at interc<strong>on</strong>necti<strong>on</strong>s are termed as “interface meters” inCentral Electricity Authority (installati<strong>on</strong> and operati<strong>on</strong> of meters)Regulati<strong>on</strong>s, 2006. Accordingly, term ‘special energy meters’ used in thisclause and wherever appearing in the <strong>proposed</strong> IEGC should <strong>be</strong> replacedby the term “interface meters”. It may <strong>be</strong> pointed out that UI regulati<strong>on</strong>sissued by CERC already used the term interface meters.8. Clause 6.4 (28)Commercial implicati<strong>on</strong>s of inter-regi<strong>on</strong>al exchanges of power getreflected in the REA, UI accounts and Reactive Energy account preparedby RPC Secretariat c<strong>on</strong>cerned. Therefore, it appears that intenti<strong>on</strong> in the<strong>proposed</strong> IEGC is that NLDC should maintain statistics of inter-regi<strong>on</strong>alexchanges of power. If so, the provisi<strong>on</strong> regarding energy accountingmay <strong>be</strong> reworded appropriately.9. Clause 6.5 (19)It is noted that in the UI regulati<strong>on</strong>s, a limit has <strong>be</strong>en put <strong>on</strong> under injecti<strong>on</strong>by the genera<strong>to</strong>r. To do so, the genera<strong>to</strong>rs must have facility <strong>to</strong> revisetheir declarati<strong>on</strong> in case of forced outages. However, this clause of<strong>proposed</strong> IEGC allows <strong>on</strong>ly genera<strong>to</strong>r with two part tariff and l<strong>on</strong>g termc<strong>on</strong>tract <strong>to</strong> revise their schedule in case of forced outage. Therefore <strong>to</strong>have a level playing field and <strong>to</strong> enable genera<strong>to</strong>rs <strong>to</strong> generate close <strong>to</strong>their schedule, genera<strong>to</strong>rs supplying through bilateral transacti<strong>on</strong>s underopen access should <strong>be</strong> given right <strong>to</strong> revise declarati<strong>on</strong> in case of forcedoutages. Since such events are not so comm<strong>on</strong> in a well maintainedgenerating stati<strong>on</strong>, a limit say <strong>on</strong>ce per day may also <strong>be</strong> specified for thispurpose.10. Clause 6.5 (23)Wind forecasting <strong>to</strong>ols are independent of the generating plant of the windfarms and therefore, there appears <strong>to</strong> <strong>be</strong> no technology related reas<strong>on</strong> forproposal <strong>to</strong> exempt wind farms for which PPAs have already <strong>be</strong>en signedfrom the requirement of wind forecasting. This exempti<strong>on</strong> appears <strong>to</strong> have<strong>be</strong>en made <strong>on</strong> the c<strong>on</strong>siderati<strong>on</strong> that it will upset existing commercialagreements. In this regard, it needs no emphasis that new regula<strong>to</strong>ryinitiatives can always override prevailing c<strong>on</strong>tracts, like when ABT wasimplemented it altered the agreed commercial arrangement <strong>be</strong>tweenexisting generating stati<strong>on</strong>s and their <strong>be</strong>neficiaries.5


Also, there appears <strong>to</strong> <strong>be</strong> ambiguity in the provisi<strong>on</strong>s regardingrevisi<strong>on</strong> of schedules due <strong>to</strong> two separate provisi<strong>on</strong>s- <strong>on</strong>e regardingeffectiveness of the revisi<strong>on</strong> from the sixth time block and the otherregarding scheduling <strong>on</strong> 3 hour time slot basis. It is suggested thatrevisi<strong>on</strong> of the schedule should <strong>be</strong> effective <strong>on</strong>ly from the <strong>be</strong>ginning ofnext 3 hour time slot, provided notice <strong>to</strong> this effect is given at least fourtime blocks in advance.12. Annexure I (Complimentary Commercial Mechanism)To bring in more clarity, it is suggested that Commercial Mechanismregarding renewable sources should <strong>be</strong> made part of a separateAnnexure.From para 1 and 2 of the Annexure, it appears that this mechanism isapplicable <strong>to</strong> ISGS <strong>on</strong>ly as no menti<strong>on</strong> has <strong>be</strong>en made about transacti<strong>on</strong>smade using access <strong>to</strong> ISTS. However, in para 4 regarding Renewablesources, it appears that these provisi<strong>on</strong>s are applicable <strong>to</strong> renewableISGS as well as <strong>to</strong> renewable energy sources supplying power usingaccess <strong>to</strong> ISTS. This aspect may <strong>be</strong> looked in<strong>to</strong> while finalizing the IEGC.From para 5, it appears that in some cases, Renewable Regula<strong>to</strong>rycharge would <strong>be</strong> payable while in some other cases, it would <strong>be</strong>receivable. Therefore, it is suggested that there should <strong>be</strong> a provisi<strong>on</strong> forcreati<strong>on</strong> of a Renewable Energy Charge pool <strong>on</strong> the lines of UI pool.Also, it is suggested that there is need <strong>to</strong> relook in<strong>to</strong> sharing of UIcharges <strong>be</strong>tween buying state and wind/solar genera<strong>to</strong>r particularly forover-injecti<strong>on</strong> exceeding 30%. In shortage c<strong>on</strong>diti<strong>on</strong>s, when frequencymay <strong>be</strong> low (and hence UI rate will <strong>be</strong> high), the <strong>proposed</strong> provisi<strong>on</strong> mayprovide perverted incentive for the wind/solar genera<strong>to</strong>r <strong>to</strong> under-declarecapability and get lower schedules. Thereafter, he may over-inject <strong>be</strong>y<strong>on</strong>dschedule in excess of 30% <strong>to</strong> earn undue m<strong>on</strong>ey. This is particularly truesince no check is <strong>proposed</strong> <strong>on</strong> the forecasting <strong>to</strong>ol of the wind/solargenera<strong>to</strong>r. One way out could <strong>be</strong> <strong>to</strong> specify the requirement for forecasting<strong>to</strong>ol that it will <strong>be</strong> free from manual interventi<strong>on</strong> and forecasting resultsshould <strong>be</strong> recorded in such a manner that they can not <strong>be</strong> tampered with.If such technological requirement is not feasible, the <strong>proposed</strong> commercialmechanism may <strong>be</strong> re-casted <strong>to</strong> avoid such gaming.In para 6, it is <strong>proposed</strong> that for wind/solar genera<strong>to</strong>rs, a maximumdeviati<strong>on</strong> of 50% will <strong>be</strong> allowed in a time block. However, c<strong>on</strong>sequencesof deviati<strong>on</strong>s <strong>be</strong>y<strong>on</strong>d 50% are not clear. Generally, <strong>grid</strong> security may <strong>be</strong>endangered <strong>on</strong>ly in case of over-injecti<strong>on</strong>. Such provisi<strong>on</strong>, withoutadditi<strong>on</strong>al financial implicati<strong>on</strong>s may not serve the desired purpose.6

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