CERC approves detailed procedure for Renewable Regulatory Fund (RRF)
Central Electricity Regulatory Commission (CERC) has approved detailed “Procedure for the Implementation of the Mechanism of Renewable Regulatory Fund” under Regulation 6.1 (d) of Central Electricity Regulatory Commission (Indian Electricity Grid Code), Regulations 2010. The implementation of Renewable Regulatory Fund (RRF) mechanism which was scheduled on 01.07.2013 has now been deferred by 15 days and will be implemented from 15.07.2013. CERC has asked the National Load Dispatch Centre (NLDC) to undertake mock trial of the mechanism for 15 days before implementing it completely from 15th July 2013.
The Renewable Regulatory Fund (RRF) regulations require wind and solar projects that meet certain criteria to forecast and schedule their power on a day-ahead basis. This requirement will have significant operational and financial implications for the projects – the task of forecasting wind and solar power which are essentially variable in nature and dependent on many site-specific weather factors is complex in nature. Once fully functional, projects will need to ensure that they forecast and schedule their power, and also have a ‘Coordinating Agency’ appointed to manage the logistical requirements for scheduling, reporting and settlement. At the same time, the scheduling, reconciliation and financial settlement requirements will also require on-ground coordination and liaisoning. . The scheduling and forecasting has to be done on a pooling substation basis, which will often have turbines with multiple owners. The task of ‘de-pooling’ so that the settlement of charges can be done appropriately amongst all the owners within the wind farm will also be a challenging one.