4. SOUTHERN
REGION
WESTERNR
EGION
EASTERN
REGION
NORTHERN
REGION
NORTH-
EASTERN
REGION
Area : 1010,000 SQ KMS
Population : 330 Million
Peak Demand : @ 61.65 GW
:1033 MU / Day
Area : 951470 SQ KMS
Population : 244 Million
Peak Demand : @58GW
:1180 MU / Day
Area : 651000 SQ KMS
Population : 232 Million
Peak Demand : @45.6 GW
:966.5 MU / Day
Area : 433680 SQ KMS
Population : 240 Million
Peak Demand :@ 23.45 GW
:441 MU / Day
Area : 255,090 SQ KMS
Population : 40 Million
Peak Demand :@ 2.88 GW
: 46 MU / Day
Total 3,287,263 sq. km area
Target by 2027:
Installed Capacity: 685 GW
Peak Demand : 520 GW
INSTALLED CAPACITY
NORTHERN : 95.893 GW
WESTERN : 120.372 GW
SOUTHERN : 109.236 GW
EASTERN : 36.047 GW
NER : 4.372 GW
ISLANDS : 0.058 GW
TOTAL : 365.97 GW
Installed Capacity as on 30.11.2019
Source : CEA
REGIONAL GRIDS
5. NEW Grid
South
Grid
South
West
North
East
Northeast
Five Regional Grids
Five Frequencies
October 1991
East and Northeast
synchronized
March 2003
West synchronized
With East & Northeast
August 2006
North synchronized
With Central Grid
Central Grid
Five Regional Grid
One Nation - One frequency
South
Grid
All India Grid
31st Dec. 2013,
NEW & SR grid
synchronized
3.2 Million Sq. Km Area
NR
SR
Installed Capacity 365.97 GW
6. 6
Grid Operation and Control in India
State Load Despatch Centers (SLDCs)
35 States & UTs
Regional Load
Despatch
Centers (RLDCs)
5 Regions
Regional Power
Committees
(RPCs)
5 Regions
National
Load
Despatch
(NLDC) 1 No.
National
Power
Committee
(NPC) 1 No.
Central
Electricity
Authority
Under
MoP, GoI
Intra State Generation, Transmission (STU) &
Distribution Companies, Intra/Inter
State Open Access, State Grid & Inter state
Grid connections. Regulatory Authority State
Electricity Regulatory Commission (SERC)
Inter State Generation, Transmission (CTU)
Inter State Open Access, Regional Grid & Inter
Region Grid connections. Regulatory Authority
:Central Electricity Regulatory Commission
(SERC)
Inter State Regional Grid operations& Inter
Region / Cross Border Grid connections, Power
Exchanges. Regulatory Authority :Central
Electricity Regulatory Commission (SERC)
Formation of Electricity Policies and implementation of
ACT and Policies through NPC, RPCs and NLDC –
Consultants to MoP, GoI
Operational
aspects
Commercial
aspects
7. Maharashtra State Load
Despatch Centre
( MSLDC)
Intra State Generating
Stations
• MS Power Generation Co.
• Tata Power Co. – (G)
• AEML – (G)
• IPPs : APML,WPCL,JSWEL,
RPL ,VIPL, IEPL
• All Captive Power Plants,
• NCE ( Wind, Solar, Bio-mass
etc.)
Intra State Transmission Licensees
• MS Electricity Transmission Co. (MSETCL)
• Tata Power Co. – (T)
• AEML – (T)
• Jaigad Trans. Co. (JPTL)
• Adani Transmission India ltd. (ATIL)
• Amravati Power Transmission Co. Ltd. (APTCL)
• Sinnar Power Transmission Co. Ltd. (SPTCL)
• Maharashtra Eastern Grid Power Transmission
Co. Ltd.( MEGPTCL)
• Vidarbha Industries Pvt. Ltd. (VIPL)
Intra State Distribution Licensees
• M.S. Electricity Distribution Co.
• Tata Power Co. – (D)
• AEML – (D)
• BEST
• Central Railway (Maharashtra)
• MADC (SEZ)
• Mindspace Properties (SEZ)
• Giigaplex (SEZ)
• NIDAR
• KRC Infrastructure (SEZ)
Sub LDC Ambazari,(
Nagpur)
Sub LDC Trombay (Mumbai)
Intra-State Utilities Under Technical Control of MSLDC
8. Integrated Power System Operation
Generation : Supply
Generation :
Thermal:
Gas
Hydro
Nuclear
Non conventional: solar,
wind, Bio-mass etc.
Exchange with National Grid
includes CS share and
OA transactions
Distribution : Demand
Load:
Residential
Ag. Pumps
Commercial
Industries
SEZ
HT & LT
Rly TSS
Urban/Rural
etc
=
Grid Operation
Transmission
● Frequency
● Voltage
● Active & Reactive
Power flow
● Equipment Loading
( Congestion )
● Network Security
OPEN ACCESS
- Nodal Agency
PLANNING INPUTS
-Based on operational
experience
10. What is ABT and Why?
MERC introduced Intra-state ABT mechanism in Maharashtra vide order in case no 42 of 2005 dated
17th May, 2006 , however Generating companies were excluded from the settlement mechanism
The Forum of Indian Regulators (FOIR) upon recommendations of its sub-committee acknowledged
that State Electricity Regulatory Commissions are competent to determine mechanism for
introduction of Availability Based Tariff mechanism at State level,
However, it needs to be ensured that Intra-State ABT mechanism is compatible with inter-State ABT
mechanism.
Inter – State ABT mechanism introduced at Central Level in 2001, namely Unscheduled Interchange
(UI) mechanism
Further, modified as Deviation Settlement Mechanism (DSM) since February 2014.
The clause 5.7.1(b) of National Electricity Policy (NEP) notified by Central Government mandates the
Appropriate Commissions to introduce Availability Based Tariff (ABT) mechanism at State level.
Interim Balancing and Settlement Mechanism (IBSM) : October 2006.
Final Balancing and Settlement Mechanism (FBSM) : August 2011.
Grid problems till 2000 : Wide frequency deviations, uncontrolled drawal by states , undisciplined
generation (higher generation during night hours to achieve total generation targets , frequent
blackouts/ grid disturbances , grid voltage issues etc.
11. G G G G G
Transmission System InSTS
Contracted Capacity of D1 D2 D3 D4
Drawl of D1 D2 D3 D4
Import
From
National
Grid ISTS
Intra-state Generators InSGS
Unscheduled Interchange (UI) (UI)
State Deviation
= Actual -
Schedule
Representation of State Grid & Settlements
Deviation Settlement
Mechanism ( Frequency Based)
Intra-state ABT Mechanism
Weighted Average System Marginal Price (WASMP)
Generator
Transformers
Power
Transformers
Transmission Lines,
Sub-stations
& Interconnecting Transformers
UI settlement at
Transmission Bus
13. Drawl from CS 2500 MW (= 12500- 10000 – 2000)
State Gen
10000 MW
State Load 12500
MW
CS Schedule 2000 MW
CS Deviation
500 MW
If System frequency is below 49.7 Hz, the State has to pay at Rs 8.0 PU is Rs.10,00,000 in 15 minutes! (
Deviation of 500 MW in one block -- > Deviation charge Rs. 1 million )
Concept of Deviation Price (erstwhile Unscheduled Interchange)
13
14. Components of Tariff for MSPGCL units under present
system
Tariff (Thermal Power)
Variable Charge
• Recovery on Actual
Sent out generation.
• The energy
(variable)
charges shall cover
fuel cost
• Interest on loan capital
• Depreciation
• Return on equity
• O&M Expenses
• Interest on Working Capital
Fixed Charge
Recovery of Fixed charges
is based on Target Availability
Recovery of Fixed charges < level of target
availability shall be on pro-rata basis
Two part tariff
15. Components of Tariff under ABT
Tariff (Thermal Power)
Variable Charge
• Recovery on
Scheduled
generation.
• The energy
(variable)
charges shall
cover fuel cost
• Interest on loan capital
• Depreciation
• Return on equity
• O&M Expenses
• Interest on Working Capital
Fixed Charge
Recovery of Fixed charges
is based on Target Availability
Recovery of Fixed charges < level of target
availability shall be on pro-rata basis
Three part tariff
• Recovery on
Deviation w.r.t.
schedule
• Rate varying as
per Frequency as
well as per market
condition
16. 16
Generation Capacity in various terms
Linked to Fixed
Charges
by Beneficiary
Over-
Injection
Technical Minimum
Capacity (MW) –
Presently 55% of IC
Under-
injection
Actual
Generation
SG < = DC
Name Plate Capacity (MW) =
Installed Capacity (IC)
Auxiliary
Consumption
(MW)
Maximum
Declared
Capacity
(MW)
DC < IC
Actual DC
Scheduled
Generation
Backing
Down
17. “Declared Capacity” means, in relation to a generating Station, the capability to
deliver ex-bus electricity in MW declared by such generating Station in respect of
any time-block of the day as defined in the State Grid Code or whole of the day,
taking into account the availability of fuel and/or water, and subject to further
qualification in the relevant Regulation;
“Scheduled Generation” at any time or for a time block or any period means
schedule of generation in MW or MWh ex-bus given by the concerned Load
Despatch Centre;
“Actual injection” in a time-block means electricity generated or supplied by
the Seller, as the case may be, and measured by the interface meters;
“Deviation” in a time-block for a Seller means its total actual injection minus its
total scheduled generation and for a Buyer means its total actual drawal minus
its total scheduled drawal and shall form part of the State Energy Accounts to be
prepared by the State Load Despatch Centre;
Key Definitions
21. Changes in Intra-state ABT mechanism under
Deviation Settlement Mechanism Regulation, 2019
similar to CERC mechanism
22. •DSM under these Regulations shall be applicable for all seller(s), including OA generators, captive generators
(excluding In-Situ captive generators) connected to Intra-State Transmission System but excluding wind and solar
generating station(s).
•‘Deviation’ in a time-block for Seller (i.e. generator) = Total actual injection – (minus) Total scheduled
generation.
•The Commission had proposed to implement this DSM Framework in phased manner by April 2020 considering
implementation period of 12 to 15 months , to allow adequate time for all key stakeholders including MSLDC for
preparedness and to provide sufficient time to set up necessary hardware/software and to undertake pilot test runs.
•As per the original schedule, the Regulations was to become applicable from 1st April, 2020.However due
to Covid-19 difficulties and as the DSM software was not stabilised the implementation was postponed.
Changes in Intra-state ABT mechanism as per Deviation Settlement Mechanism, Regulations
2019 similar to CERC mechanism
Hon’ble Commission has issued the Deviation Settlement Regulations, 2019 for introduction of Deviation
Settlement Mechanism in Maharashtra , in line with CERC mechanism.
23. 23
MERC DSM Regulation 2019 for Intra-State ABT
• IEGC frequency Band 49.85 – 50.05 Hz.
• Deviation = Actual Injection - Scheduled Generation
• Volume limit of generator is 50 MW or 12 % of Schedule , whichever is lower
• Additional charges at rate of 20%, 40%, 100% of applicable Deviation Charges in steps of deviation [ 12%-
15%, 15%-20%, > 20% (when SG =< 83.33 MW) ] or [ 12% of SG to 12% of SG +10 MW , 12% of SG +10 MW to
12% of SG + 20 MW , above 12% of SG + 20 MW ( for 416.66 MW >SG >83.33 MW) ] or [ 50-60 MW, 60-70 MW, >
70 MW (when SG > =416.66 MW) ]
• The price for the deviation i.e. Deviation Price or DSM vector is linked to Daily Area Clearing Price (ACP) for
the Power Exchange as daily published on NLDC (National Load Despatch Center website). This price will be
applicable for 50 Hz.
• Deviation Price rate changes daily . Ceiling for Cap rate is 394.35 paise/unit for domestic coal based units
and also APM gas based units.
• The deviation charges are to be paid for
1. Deviation of actual energy w.r.t. to scheduled energy
2. Additional charge for Volume deviation beyond 12% of schedule or above 50 MW , whichever is lower
3. Additional Charge for violation of sign change stipulation -- presently not applicable not notified yet
Additional condition for a change in sign of the deviation shall be met once every 6-time blocks by
Buyer/Seller, failing which, additional charges @20% of the Deviation Charges on daily base DSM payable/
receivable as the case may be shall be levied for the duration of continuance of violation.
24. 24
Various capacities and DSM implications
DSM Charges Receivable
(subject to Price & Volume CAP)
Over
Injection
Schedule
DSM Charges Payable
(subject to Price CAP)
Under
Injection
Declared
Capacity
(MW)
Name Plate
Capacity (MW)
15 min
Schedule
Issued
(MWh)
Payment by
Beneficiary at
PPA rate
Actual
Generation
25. 25
DSM Price Vector
50.00 Hz
50.05 Hz
49.85 Hz
Area Clearing Price
Rs. 8.00 / kWh
Area Clearing Price :
Indian Energy Exchange is discovering area clearing price based on sell and purchase bids for
each time block for particular bid area. ACP is average of clearing price for the day and is
declared by NLDC every day by 18:00 hrs applicable for next day which applicable as DSM rate in
that bid area.
27. Tabular representation of Deviation and Additional Deviation Charges for Seller as per MERC DSM
Regulations
-- For Additional DSM Rates in Table I of Annexure –II of MERC DSM Regulations (reproduced as Annexure –II with this Procedure) shall be
referred.
-- For Additional DSM Rates for under-injection by Gen. stations using Coal or Lignite or Gas supplied under APM Table II of Annexure –II of
MERC DSM Regulations
No DSM charge will be computed if all the units under the tariff group are under Zero schedule shutdown
during the period.
Within volume limit (12%
of schedule or 50 MW
whichever is lower)
Above volume limit (12%
of schedule or 50 MW
whichever is lower)
Within volume limit (12% of
schedule or 50 MW
whichever is lower)
Above volume limit (12% of
schedule or 50 MW whichever is
lower)
49.85 Hz > Actual frequency
Normal DSM charge , No
Additional DSM charge
Normal DSM charge for
Deviation upto volume
limit , zero charge for
overinjection above
volume limit
Normal DSM charge +
Additional DSM charge for
all deviation
Normal DSM charge + Additional
DSM charge for all deviation
49.85 Hz=< Actual freq.< 50.05
Hz
Normal DSM charge , No
Additional DSM charge
Normal DSM charge for
Deviation upto volume
limit , zero charge for
overinjection above
volume limit
Normal DSM charge , No
Additional DSM charge
Normal DSM charge + Additional
DSM charge on deviation exceeding
volume limit (e.g. when volume
limit is 50 MW, @20% rate for
deviation between 50 MW to 60
MW, @40% for deviation between
60 MW to 70 MW, @100% for
deviation above 70 MW)
50.05 Hz =< Actual freq. < 50.1
Hz
Zero DSM charge, No
Additional DSM charge
Zero DSM charge, No
Additional DSM charge
Zero DSM charge , No
Additional DSM charge
Zero DSM charge , No Additional
DSM charge
50.1 Hz =< Actual frequency
Over injection (Positive deviation) Under -injection (Negative Deviation)
Frequency band
Zero DSM charge but Additional DSM charge on all
over-injection at rate equal to ACP rate for the day.
Zero DSM charge , No Additional DSM charge
28. • Declaration of Day Ahead capacity by 09:00 Hrs every day.
• Deviation for Seller shall be computed by MSLDC for each time block and accounted on
weekly basis.
• While computing deviation the Sellers whose Tariff / PPA/MoU/Bilateral Agreement or any
contractual arrangement is Unit-wise, Deviation for such Seller(s) shall be computed Unit-wise.
In case of Sellers whose contractual arrangement is Station-wise, the Deviation for such Seller(s)
shall be computed Unit-wise, however the deviation charges shall be computed Station-wise.
• The Volume limit for individual station/unit is 50MW or 12% of Scheduled generation,
whichever is lower.
• Revised DC will be applicable from 4th block from intimation of change through Scheduling
software
• In case of Hydro stations > 25 MW, at the time of Deviation charge computations, the
Actual generation will be considered as the Scheduled generation i.e. no Deviation charges to be
paid / received for Hydro stations. However , other provisions like submission of technical details
for registration, Declaration of DC are applicable for Hydro stations also.
• Specific modalities for Intra-state Generators :
Continued..
29. • Total deviation for a station /unit over the day should not exceed 1% . In case of violation of this
limit, 20% additional charge of daily DSM is to be paid. – Yet to be notified
• No over-injection of electricity by any Seller shall be permissible when grid frequency is “50.1 Hz and
above”
• Additional condition for a change in sign of the deviation shall be met once every 6-time blocks by
Buyer/Seller, failing which, additional charges @20% of the Deviation Charges on daily base DSM
payable/ receivable as the case may be shall be levied for the duration of continuance of violation.
To illustrate, if a state entity has positive deviation from schedule, i.e. from 07.30hours to9.00 hours,
sign of its deviation from schedule shall be changed in the 7thtime block, i.e. 9.00 hours to 9.15 hours
either from positive to negative or from negative to positive. The additional Charge for violation of sign
change stipulation shall be leviable for each such violation during a day from the date to be notified
separately by the Commission.
• The issue regarding DSM charges being levied when the units are under “zero schedule shutdown” /
RSD was raised by MSPGCL. Thus Hon’ble Commission has modified the provision and now. When all
the units are under Zero schedule shutdown or RSD , there will be no DSM charge computed.
• Specific modalities for Intra-state Generators :
Continued..
30. Regulatory & Commercial Dept 30
Time
Lines
Responsibility From To Form No.
By 0600 Station wise ex-power plant MW and MWh Capabilities foreseen for the next Day ISGS WRLDC
By 0800
Availability of ISGS Station wise ex-power plant MW and MWh capabilities
foreseen for the next Day
WRLDC MSLDC
Available on
WRLDC's
Website
By 0830
Availability of ISGS Station wise ex-power plant MW and MWh capabilities
foreseen for the next Day
MSLDC Beneficiary
Available on
WRLDC's
Website
By 0900
Unit-wise ex-power plant generation availability in MW and MWh taking into
consideration any outage of its generating unit for the next day.
Sellers including RE
Generators
connected to InSTS
MSLDC Form IS
By 0900 Consent for ISGS capacities by Beneficiaries Beneficiary MSLDC
By 0900 Consent for ISGS capacities by Beneficiaries to WRLDC MSLDC WRLDC
By 0945
Consent for Beneficiary to the ISGS for quantum and duration of power for next
day for sale in the market
WRLDC ISGS
By 1000
QCA to upload Pooling Sub-Station wise and Buyer-wise day ahead Forecast and
Abailable Capacity on 15-min time block basis
QCA. MSLDC Form IS
By 1000
Buyers to upload Pooling Sub-Station wise and Buyer-wise day ahead Forecast
and Abailable Capacity on 15-min time block basis for next day in MW and MWh
Buyers MSLDC Form IS
By 1000
Full Transmission Open Access Consumers furnish detailed Drawal schedule on
15 minutes time block basis for next day in MW and MWh
Full TOA consumers MSLDC
Form
IB/Form IS
By 1100 Preparation of Load Generation Balance and URS if any MSLDC On web site
By 1115 Target deshpatch Schedule for Seller and Target Drawal Schedule for Buyers. MSLDC
Buyers and
Sellers
Form 3S
Timelines for Scheduling and Despatch Procedure
31. Regulatory & Commercial Dept 31
Time
Lines
Responsibility From To Form No.
By 1400 ISGS drawal schedule of Beneficiaries Beneficiaries MSLDC
By 1500 ISGS drawal schedule of Beneficiaries MSLDC WRLDC
By 1800 "Net drawal schedule" of the State in MW and MWh for the next day WRLDC MSLDC
Available on
WRLDC's
Website
By 2000
Unit wise ex-bus generation revised availability in MW and MWh taking into
consideration any outage of its generating unit for the next day.
Sellers QCAs
connected to
InSTS
MSLDC Form IS-R
By 2000
Revised drawal schedule for next day against bilateral power and IPP requisition
they have contracted in short term and long term basis.
Buyers MSLDC Form IB-R
By 2000 Revised ISGS Drawal Schedule by Beneficiaries Beneficiaries MSLDC
By 2200 Revised ISGS Drawal Schedule by Beneficiaries MSLDC WRLDC
By 2300 Final Load Generation Balance and URS available if any MSLDC MSLDC Website
By 2330
Final targeted despatch schedules for Sellers and targeted drawal Schedules for
Buyers.
MSLDC
MSLDC
Website
Form No. 2S
Timelines for Scheduling and Despatch Procedure
32. 32
DSM Development
Deviation Settlement Mechanism (DSM)
Hon’ble MERC issued DSM Regulation on 01st March, 2019.
Directed MSLDC to submit Scheduling and Despatch (S&D) Code and DSM Procedure.
Accordingly, S&D Code and DSM procedure is approved by Hon’ble MERC.
Software Development work is entrusted to M/s PwC, which includes following modules
Core modules:
1. State Entity Registration
2. Scheduling
3. Meter Data Management (MDM)
4. DSM
Additional modules:
1. Active/Reactive Energy Accounting
2. Transmission Loss Accounting
3. Fees & Charges
4. MIS (Reports)
5. Big Data Analytics
Entire database and software will be on cloud.
Software development work is in progress.
DSM is expected to be implemented from October 2021.
Billing cycle
Weekly bills for DSM charges for Monday to Sunday will be raised by SLDC - By next Tuesday ( 10th
day from week-end Sunday)
State Entity to pay the bill by 10th day , irrespective of any error/ correction
Any discrepancy to be intimated to SLDC within 15 days of billing date and SLDC to resolve the issue
within 6 days from intimation by the Entity
Penalty charges applicable from 12th day from billing date.
If Entity does not pays the bills for 4 consecutive weeks, the entity will not barred from scheduling
activity.
34. 34
De-centralised and Centralised MOD
Buyer wise MoD or De-centralised MOD
Merit Order Despatch schedule for respective distribution licecese considering only generators
contracted that Discom.
Generator can revise DC during intra day operation, such revision shall become effective from
the 4th time block, counting the time block in which the revised schedule
Centralised MOD
MSLDC shall issue necessary despatch or curtailment instructions in accordance with
Centralised MoD principles for the state as whole, considering the grid parameters including
frequency, voltage, transmission line loading, substation loading conditions or State volume
limits to maintain the Load-Generation balance and comply with conditions stipulated under
IEGC and State Grid Code.
In such cases, the revised schedules shall become effective from the 4th time block, counting
the time block in which the revised schedule is issued by the MSLDC to be the first one.
35. 35
Centralized and De-centralized MoD
Discom Forcasted
Drawl
Considaring
Embaded
Generators
Contracted Generators Sum
Contracte
d Capacity
Short Fall
/ Surplus
After
MoD
A B C D E F G
Discom 1 D1- Gen 1 D1-Gen 2 …. D1-Gen n B+C+….+n E-F E=F
Discom 2 D2- Gen 1 D2-Gen 2 …. D2-Gen n B+C+….+n E-F E=F
Discom 3 D-3Gen 1 D3-Gen 2 …. D3-Gen n B+C+….+n E-F E=F
De-Centralized MoD
Centralized MoD
State Demand Contracted Generators Sum Contracted
Capacity
Short
Fall /
Surplus
After
MoD
A B C D E F G
Discom 1
+Discom 2
+Discom 3
D1- Gen 1 D2-Gen 2 …. D1-Gen n D1 Gen1 .. Gen n +
D2 Gen 1 … Gen n +
D3 Gen 1… Gen n
E-F E=F
D1- Gen 1 D3-Gen 2 …. D2-Gen n
D2Gen 1 D3-Gen 2 …. D3-Gen n
36. 36
Virtual State Entity
Every intra-state entity under DSM Regulation has to Register with MSLDC and furnish all
relevant technical details.
In Day ahead scheduling de-centralized MoD will be run i.e. MoD within contracted
generators of concern Discom.
In real time operation, any Discom is deviating from drawl schedule more than allowed limit
or on revision of its contracted generator effecting on availability of concern Discom, De-
centralized MoD will be run to match load-generation balance.
During intra-day operation, Centralized MoD is required to be run considering the grid
parameters including frequency, voltage, transmission line loading, substation loading
conditions or State volume limits to maintain the Load-Generation balance and comply with
conditions stipulated under IEGC and State Grid Code or on direction from WRLDC.
During Centralized MoD run schedules of the Generators are subjected to revision, even if
concern Discom is not requiring the power enhanced or reduced for its generators.
A Virtual State Entity (VSE) is created, such enhancement or reduction of power due to
Centralized MoD shall be allocated to (VSE) and settlement will be between VSE and
Generator at prevalent DSM rate.
37. 37
Virtual State Entity settlement
0 96
48
24
72
Schedule
in MW
Day ahead Declared Capacity (MW)
Technical Minimum Capacity
De-centralized MoD
30
52
Centralized MoD
Time Blocks Centralized MoD
80
Day Ahead Schedule issued by SLDC (MWh)
Implement Schedule to Discom for payment to Generator(MWh)
Final Implement Schedule for DSM settlement (MWh)
Energy allocation from Generator to VSE, Generator will receive from VSE at DSM rate subject to Cap.
Energy allocation from VSE to Generator, Generator will pay to VSE at DSM rate subject to Cap.
39. 39
Provision in MYT Regulations for consideration of DSM charges for Annual
Revenue requirement
40. 40
Expected impact on recovery
A) ENERGY CHARGE = Schedule x EC
Based on Scheduled Generation and Drawl and NOT on actual generation and Drawl
B) Deviation Price (previously Unscheduled Interchange Charge)
Deviation charge = (Act. Gen.- Sch. Gen.) x Deviation Price as per DSM Vector.
Case 1 : Below freq. of 50 Hz , the deviation price ramps from Rs.3.09 /unit at a rate of 30.68 paise per 0.01 Hz.
(subject to cap rate of 3.943 / unit for domestic coal based units)
It will be better to increase the generation above the Schedule to the extent possible . As the Deviation will be
positive, there can be additional recovery . If the actual fuel cost per unit is lower than Deviation Price, this will
give additional gain. However, it is to be noted that in case of generation lower than schedule, the penalty will
also be at the same rate.
Case 2 : Above freq. of 50.05 Hz , the deviation price is 0 (zero) .
It will be better to reduce the generation below the Schedule , to the extent possible. As there will be no Deviation
Price, the total recovery will be at Scheduled energy , there will be saving in fuel expense to the extent of
generation below schedule. Generation more than schedule under such circumstances will lead to non
recovery of fuel cost for such excess generation.
41. Regulatory & Commercial Dept 41
Block No. Frequency (Hz)
Scheduled
generation (MW)
Actual
Generation (MW)
Scheduled
generation
(MUs)
Actual
Generation
(MUs)
Deviation (MW) Deviation (MUs)
Energy charge
Rs./kWh
Actual Fuel
Expense Rs. Lakh
22 50.02 200 220 0.05 0.055 20 0.005 2.75 1.513
23 50.05 200 218 0.05 0.0545 18 0.0045 2.75 1.499
24 50.01 200 210 0.05 0.0525 10 0.0025 2.75 1.444
25 50.03 200 216 0.05 0.054 16 0.004 2.75 1.485
26 50.05 200 208 0.05 0.052 8 0.002 2.75 1.430
27 50.06 200 205 0.05 0.05125 5 0.00125 2.75 1.409
28 50.1 200 210 0.05 0.0525 10 0.0025 2.75 1.444
10.223
Energy Charge (on
the schedule basis)
Rs. Lakh
DSM
charge
Rs. Lakh
Total
recovery
Rs. Lakh
22 50.02 200 220 1.854 1.513 1.375 0.093 1.468 0.045
23 50.05 200 218 0 1.499 1.375 0.000 1.375 0.124
24 50.01 200 210 2.472 1.444 1.375 0.062 1.437 0.007
25 50.03 200 216 1.236 1.485 1.375 0.049 1.424 0.061
26 50.05 200 208 0 1.430 1.375 0.000 1.375 0.055
27 50.06 200 205 0 1.409 1.375 0.000 1.375 0.034
28 50.1 200 210 0 1.444 1.375 0.000 1.375 0.069
10.223 9.829 0.394
Block No.
Unrecovered
fuel cost
under DSM
(Rs. Lakh)
Actual
Generation (MW)
Scheduled
generation (MW)
Frequency
(Hz)
Billing under DSM
Energy charge Billing as per
present method ( on actual
generation) Rs. Lakh
DSMrate
Rs./kWh
Case 2 : A. Over-injection when frequency is above 50 Hz. (assumed ACP = DSM charge at 50 Hz = Rs.
3.09/kWh)
With over-injection at frequency above 50 Hz, there is under recovery of fuel cost.
42. Regulatory & Commercial Dept 42
Case 2 : B. Under-injection when frequency is above 50 Hz. (assumed ACP = DSM charge at 50 Hz = Rs.
3.09/kWh)
With under-injection at frequency above 50 Hz, there is over-recovery of fuel cost.
22 50.02 200 190 0.05 0.0475 -10 -0.0025 2.75 1.306
23 50.05 200 185 0.05 0.04625 -15 -0.00375 2.75 1.272
24 50.01 200 192 0.05 0.048 -8 -0.002 2.75 1.320
25 50.03 200 185 0.05 0.04625 -15 -0.00375 2.75 1.272
26 50.05 200 180 0.05 0.045 -20 -0.005 2.75 1.238
27 50.06 200 183 0.05 0.04575 -17 -0.00425 2.75 1.258
28 50.1 200 184 0.05 0.046 -16 -0.004 2.75 1.265
8.931
Deviation (MW) Deviation (MUs)
Block No.
Frequency
(Hz)
Scheduled
generation (MW)
Actual
Generation (MW)
Scheduled
generation
(MUs)
Actual
Generation
(MUs)
Energy charge
Rs./kWh
Actual Fuel
Expense Rs. Lakh
Energy Charge (on
the schedule basis)
Rs. Lakh
DSM
charge
Rs. Lakh
Total
recovery
Rs. Lakh
22 50.02 200 190 0 1.306 1.375 0.000 1.375 0.069
23 50.05 200 185 0 1.272 1.375 0.000 1.375 0.103
24 50.01 200 192 0 1.320 1.375 0.000 1.375 0.055
25 50.03 200 185 0 1.272 1.375 0.000 1.375 0.103
26 50.05 200 180 0 1.238 1.375 0.000 1.375 0.138
27 50.06 200 183 0 1.258 1.375 0.000 1.375 0.117
28 50.1 200 184 0 1.265 1.375 0.000 1.375 0.110
8.931 9.625 0.694
Block No.
Frequency
(Hz)
Scheduled
generation (MW)
Actual
Generation (MW)
DSMrate
Rs./kWh
Energy charge Billing as per
present method ( on actual
generation) Rs. Lakh
Billing under DSM
Over-
recovered
fuel cost
under DSM
(Rs. Lakh)
43. Block Freq.
Schedule
Generation
Mw
Actual
Generation
Mw
Deviation
MW =Actual
-Scheduled
Volume %
w.r.t.Sche
du. Gen
Deviation Price
Rate(ps/unit) as
per matrix
Approved
Rate(MOD
rate) (ps/unit)
Energy
Charge As
per DSM
Rs.
DSM
Charge Rs.
add.DSM
charge on
sign change
Total
DSM
charge
Total
Billing
under
DSM
Actual
Generation
(Kwh)
Energy
billing as
per present
mechanism
Rs.
Diff.
1 49.98 200 205 5 2.50% 371.2 309.98 154990 4640 0 4640 159630 51250 158865 766
2 49.95 200 212 12 6.00% 463.1 309.98 154990 13893 0 13893 168883 53000 164289 4594
3 50.04 200 208 8 4.00% 62.0 309.98 154990 1240 0 1240 156230 52000 161190 -4960
4 50.01 200 212 12 6.00% 248.0 309.98 154990 7440 0 7440 162430 53000 164289 -1860
5 50.02 200 215 15 7.50% 186.0 309.98 154990 6975 0 6975 161965 53750 166614 -4650
6 50.04 200 220 20 10.00% 62.0 309.98 154990 3100 0 3100 158090 55000 170489 -12399
7 49.99 200 226 26 13.00% 340.6 309.98 154990 22139 -7457 14682 169672 56500 175139 -5467
Energy Billing under DSM 1136899
Energy Billing under present mechanism 1160875
Difference -23976
Over-injection on lower
freq. GAIN
Over-injection on higher
freq. LOSS
Sign change violation
LOSS
Total impact for 7 blocks
Illustration : Over-injection
44. Illustration : Under-injection
Bloc
k
Freq.
Schedule
Generation
Mw
Actual
Generati
on Mw
Deviation
MW
=Actual -
Scheduled
Volume %
w.r.t.Sche
du. Gen
Deviation
Price
Rate(ps/un
it) as per
matrix
Approved
Rate(MO
D rate)
(ps/unit)
Energy
Charge
As per
DSM
Rs.
DSM
Charge
Rs.
-12% of
schedu
ed
generat
ion
Deviation
generatio
n
between
12% to
15% limit
Deviation
generatio
n
between
15% to
20% limit
Deviation
generatio
n above
20% limit
add.DS
M
charge
on
deviatio
n
betwee
n 12%
to 15%
add.DS
M
charge
on
deviatio
n
betwee
n 15%
to 20%
add.DS
M
charge
on
deviatio
n
above
20%
Total
add.DS
M
charge
on
volume
add.D
SM
charg
e on
sign
chang
e
Total
DSM
charge
Total
Billing
under
DSM
Actul
Generati
on (Kwh)
Energy
Charge
as per
present
mechani
sm Rs.
Diff.
68 49.99 200 205 5 2.50% 340.6 309.98 154990 4258 -6000 4258 159248 51250 158865 383
69 50.01 200 201 1 0.50% 248.0 309.98 154990 620 -6000 620 155610 50250 155765 -155
70 49.95 200 185 -15 -7.50% 463.1 309.98 154990 -17367 -6000 -17367 137623 46250 143366 -5742
71 49.92 200 172 -28 -14.00% 555.0 309.98 154990 -38849 -6000 1000 0 0 -1110 0 0 -1110 0 -39959 115031 43000 133291 -18261
72 49.88 200 162 -38 -19.00% 677.5 309.98 154990 -64362 -6000 1500 2000 0 -2032 -5420 0 -7452 0 -71814 83176 40500 125542 -42366
73 49.88 200 155 -45 -22.50% 677.5 309.98 154990 -76218 -6000 1500 2500 1250.00 -2032 -6775 -8469 -17276 0 -93494 61496 38750 120117 -58622
74 49.94 200 185 -15 -7.50% 493.7 309.98 154990 -18515 -6000 -18515 136475 46250 143366 -6891
75 49.92 200 200 0 0.00% 555.0 309.98 154990 0 -6000 0 0 154990 50000 154990 0
Frequency lower
Generation drops below
Schedule due to coal mill
outage
Deviations exceed
volume limits
Heavy Loss
Energy Billing under DSM 1003648
Energy Billing under present mechanism 1135302
Difference -131654
Total impact for 7 blocks
46. 1. Though the DSM Regulations, 2019 were expected to be implemented from 1st April, 2020, due to
difficulties in finalisation of the DSM Software, the implementation was delayed. However, due to
considerate and supportive approach taken by Hon’ble Commission , the delay has proved to be
fruitful in smooth implementation of DSM.
2. The formation of Working Group Committee as per instruction of Hon’ble Commission and pro-active
actions taken by the Working committee has helped in providing adequate period for proper testing
of the software . Also through regular interactions in DSM Working Group Committee meetings, the
difficulties faced by the stakeholders were discussed in details along with possible solutions.
3. Based on such discussions, Hon’ble Commission has provided necessary clarifications /
amendments on many contentious issues and has even provided stabilization period of 6 months
after Go-live.
46
Sharing of experience and learning from operations during trial run
… Conti.
47. 4. This has helped to over-come many of the issues/ difficulties of the utilities , especially generators,
and utilities could improve the ground-level preparedness.
5. The extended time period helped MSPGCL in better understanding of the new system , increasing
awareness amongst the station staff and taking appropriate corrective actions at Station level to
improve preparedness .
6. Due to the support provided by Hon’ble Commission as well as DSM Working Group , the plant
operations after DSM Go-live are much smoother as compared to the expectations regarding
heavy DSM charges considering the earlier level of preparedness.
47
Sharing of experience and learning from operations during trial run
48. Some of the main issues raised by MSPGCL during trail run and support
provided by Hon’ble Commission.
Cont… 48
Issue raised by MSPGCL
Relief / clarification provided by Hon'ble
Commission
Computation of deviation charges to be
done on unit or group of units basis whose
energy charge is same i.e. Tariff wise,
instead of Station-as a whole
Already allowed by Hon'ble Commission.
Auxiliary consumption during zero schedule
outage / planned outage to be adjusted in
Discom schedule.
Already allowed by Hon'ble Commission
Volume limit allowed in view of difference in
station capacities (same 30 MW volume limit
for 1980 MW Koradi U # 8 to 10 as well as
250 MW Parli U # 8) .
Volume limit increased to 50 MW during
stabilization period
49. Some of the main issues raised by MSPGCL during trail run and support provided
by Hon’ble Commission.
Cont… 49
Issue raised by MSPGCL
Relief / clarification provided by Hon'ble
Commission
Operational difficulties at Uran GTPS for
which the station needs to be considered
as “constrained generator” for the purpose
of MOD stack
Already allowed by Hon'ble Commission.
Hands on experience not possible for
MSPGCL's station staff as schedule on
DSM Software is not yet applicable &
schedules are given by SLDC on manual
basis. This is a hurdle for MSPGCL,
leading to higher deviations.
Accordingly, relaxation in commercial
implications is required for at least 3-6
months.
Hon'ble Commission has provided Stabilization
period of 6 months provided till 31.03.2022 and
going forward , the Additional DSM charges were
not levied on Generators for the first four weeks.
52. Currently on many occasions it is observed that the actual generation at some of the MSPGCL stations is
lower than the schedule. In case if the frequency is on lower side during such deviation, the State may
require to draw excess power from RLDC and such exchange will be at high Deviation Price. When
Gencos are included in the settlement, naturally these charges for excess power drawal will have to borne
by MSPGCL on such occasions of low injection.
Expected impact and Actions required for improving Preparedness
In view of this, MSPGCL stations will have to be alert in declaring capacity as well as timely
rescheduling in case of difficulties to follow the declared capacity.
For achieving Scheduled generation in each block the following become very critical
Co-ordination between CHP and Plant Operations , without which accuracy in declaration can’t be
achieved.
Ensuring reliable operations of auxiliaries – Best O & M efforts
Better assessment of outage situations and timely corrections in declared capacity accordingly.
Tapping opportunities for gain during “lower frequency” regime
53. In normal course , for Hydro stations, while computing the DSM charges
Scheduled Energy will be considered to be equal to Actual injection.
Thus there is no Deviation and no DSM charge for Hydro stations.
However , as per Scheduling and Dispatch Code, the Hydro units above 25 MW capacity have to declare
their capacity on regular basis. Thus specific input modules are prepared for
-Koyana Units ( all 1956 MW capacity), Tillari , Bhira and Vaitarana HPS and Ghatghar PSS, which are
of capacity more than 25 MW.
- For other hydro stations, monthly data for next month , based on water availability / water release
programme , to be provided to MSEDCL and SLDC by 21st of every month . In case there is any change
in planning for utilisation of water during the month, same shall be informed by Generating Station or
concerned Distribution Licensee to MSLDC in advance.
-In normal case , the schedule for small hydro stations will be as per their declaration as above.
For above 25 MW units , the day-ahead schedule is as per requisition given by MSEDCL but in real time,
the schedule may be changed by SLDC as per grid requirement.
Expected impact and Actions required at Hydro stations
55. • During the Trial run process, all the MSPGCL Management including CMD Sir , were regularly
apprised on the related developments and the management had pro-actively issued necessary
directions to the Stations as well as HO offices to ensure that MSPGCL stations remain well
prepared for changes under the new regime.
• For TPS level internal DSM real-time Dashboard is developed by MSPGCL IT team for online
monitoring .
• DSM groups were formed at local level to co-ordinate the activities at station level.
• Awareness training given to all operation staff .
• Monitoring & issuance of necessary directions by Director (Operations) for effective and
successful adoptin of DSM regime.
• With all these collective efforts , all MSPGCL stations are generally trying to follow DSM Schedule
and minimise DSM charge implication.
MSPGCL DSM Readiness
55
56. Preparation of DSM Dashboard for ready reference for Plant control room Operations staff – IT
section with DSM Group
- Providing the input signals for the DSM dashboard – Testing , I & C / Electrical
- Updation of live data available from SLDC software – IT section with DSM Group
- Computation of expected DSM charges to help decision making – IT section / DSM group
- Working out strategies for loss reduction and then gain maximization – DSM group
Improving awareness amongst the different wings – Operations & CHP , Operations and
Maintenance , CHP & Chemists etc. So that declaration of capacity is correct and then plant
operations are as per schedule or as per DSM charges optimization strategy - S.E of the concerned
departments
Timely verification of Metered data and DSM bills received from SLDC.- DSM group / Testing , I & C
/ Electrical
DSM preparedness for MSPGCL
69. Regulatory & Commercial Dept 69
Till now the journey under DSM is much better than expected. However from 1st April 2022, the
volume limit is expected to reduced to 30 MW. Thus following precautions are necessary.
1. To avoid applicability of Additional DSM , to the extent possible.
2. To avoid Over-injection when freq. is higher than 50.01 Hz ( unless DSM rates are higher). --
- This is essential for units with higher MOD rates like Nashik, Parli , Bhusawal # 3.
3. To increase generation under low frequency to get higher DSM receivables.
4. To avoid mis-declaration.