Salient points of deviation and settlement mechanism applicable from 17.02.14

 

1. Deviation Price Vector:

A. Deviation Charge:

Hz

Paise/KWh

Hz

Paise/KWh

Hz

Paise/KWh

Hz

Paise/KWh

50.05

0

49.96

261.36

49.87

448.92

49.78

636.48

50.04

35.6

49.95

282.2

49.86

469.76

49.77

657.32

50.03

71.2

49.94

303.04

49.85

490.6

49.76

678.16

50.02

106.8

49.93

323.88

49.84

511.44

49.75

699

50.01

142.4

49.92

344.72

49.83

532.28

49.74

719.84

50

178

49.91

365.56

49.82

553.12

49.73

740.68

49.99

198.84

49.9

386.4

49.81

573.96

49.72

761.52

49.98

219.68

49.89

407.24

49.8

594.8

49.71

782.36

49.97

240.52

49.88

428.08

49.79

615.64

49.7

803.2

B. Analysis:

Each step of frequency is 0.01 Hz and

a.At 50.00 Hz: 178 paise/KWh

(Median value of avg energy charge of coal/lignite stations regulated by CERC in last 6 months period).

b.    Below 49.7 Hz: 824.04 paisa/KWh

(Highest of avg ECR of stations regulated by CERC in last 6 months period

c. At and above 50.05 Hz: 00.0 paisa/KWh

d. From 50.05 to 50.00 Hz each step 35.6 paisa/KWh

(Evaluated in each step of frequency from rate at 50.05 Hz and rate at 50.00 Hz on pro-rata as above)

e. From 50.00 to 49.70 Hz each step 20.84 paisa/KWh

(Evaluated in each step of frequency from rate at 50.00 Hz and rate at below 49.70 Hz on pro-rata as above)

f. At 49.7 Hz: 803.2 paisa/KWh

Note:  

1. Last six months to be Jan to June or July to Dec or any other 6 months if deemed necessary.

2. Charge to be reviewed from time-to-time.

 

2. Permissible Deviation (PD):

  • 12% of schedule or, 150MW whichever is less.
  • Permissible deviation shall be applicable at the inter-State boundary of the respective State.
  • Deviation charge of

A. Under drawal for excess of PD to be 0.

B. Over-Injection for excess of PD to be 0 except infirm power.

 

3. From Buyer/Beneficiary point of view:

  1. Permissible deviation shall not exceed when grid frequency is 49.7 Hz and above.
  2. No overdrawal permissible when grid frequency is below 49.70 Hz.
  3. Overdrawal possible only when grid frequency is “49.70 Hz and above”.

4. From Seller/Generator point of view:

  1. Permissible deviation shall not exceed when grid frequency is 49.7 Hz and above.
  2. No underinjection permissible when grid frequency is below 49.70 Hz.
  3. No overinjection permissible when grid frequency is 50.10 Hz and above.
  4. No volume limit for infirm power.
  5. No volume limit for drawal before COD when grid frequency is 49.7 Hz and above.
  6. F.    Cap rate for Infirm power:

1. Domestic coal/ Lignite/Hydro: 1.78/KWh.

2. APM gas: 2.82/ kWh upto 31.03.14 thereafter 5.64/ kWh.

3. Imported Coal: 3.03 / kWh

4. RLNG: 8.24 / kWh

  1. Cap rate for deviaton by genarator under APM is 303.04 paisa/KWh. Cap rate should coincide with ECR on Imported coal. Cap rate to be removed from 01.04.14.

 

5. Additional charge for deviation (Seller/Buyer):

I.        When 12% of schedule<=150MW (Underinjection/Overdrawal):

a. 12% of schedule<Underinjection/Overdrawal <=15% of schedule:

i.        20% of deviation price vector in the time block for all, except for stations under APM

ii.        20% of the Cap rate for Deviations of 303.04 Paise/KWh or the Charge for Deviation corresponding to average grid frequency of the time block, whichever is less for stations under APM.

b. 15% of schedule< Underinjection/Overdrawal <=20% of schedule:

i.        40% of deviation price vector in the time block for all, except for stations under APM.

ii.        40% of the Cap rate for Deviations of 303.04 Paise/KWh or the Charge for Deviation corresponding to average grid frequency of the time block, whichever is less for stations under APM.

c. 20% of schedule< Underinjection/Overdrawal:

i.        100% of deviation price vector in the time block for all, except for stations under APM.

ii.        100% of the Cap rate for Deviations of 303.04 Paise/KWh or the Charge for Deviation corresponding to average grid frequency of the time block, whichever is less for stations under APM.

                                   II.        When12% of schedule>150MW (Underinjection/Overdrawal):

a. 150MW< Underinjection/Overdrawal <=200MW:

i.        20% of deviation price vector in the time block for all, except for stations under APM.

ii.        20% of the Cap rate for Deviations of 303.04 Paise/KWh or the Charge for Deviation corresponding to average grid frequency of the time block, whichever is less for stations under APM.

b. 200MW< Underinjection/Overdrawal <=250MW:

i.        40% of deviation price vector in the time block for all, except for stations under APM.

ii.        40% of the Cap rate for Deviations of 303.04 Paise/KWh or the Charge for Deviation corresponding to average grid frequency of the time block, whichever is less for stations under APM.

c. 250MW< Underinjection/Overdrawal:

i.        100% of deviation price vector in the time block for all, except for stations under APM.

ii.        100% of the Cap rate for Deviations of 303.04 Paise/KWh or the Charge for Deviation corresponding to average grid frequency of the time block, whichever is less for stations under APM.

III.        When Frequency <= 49.70Hz (Underinjection/Overdrawal):

a. Deviation Charge of “below 49.7Hz” for all, except for stations under APM.

b. 100% of cap rate for deviation i.e., 303.04 paisa/KWh for plant under APM fuel.

IV.        When Frequency >= 50.10Hz (Over-Injection/Underdrawal): Deviation Charge at 50Hz.

 

Author: Mr. Sunil Barnwal is currently working as Manager in Reliance Energy Limited (BSES). He has rich experience in Power Market with functional expertise in the concept of Effective Management of power purchase portfolio, PPAs (Contract negotiation and analysis of agreement clause)Strategic planning of Existing/New Regulation of CERC/ DERC. He is also involved in Negotiation, Validation and overall analysis of Long/Short term Power Purchase. He can be reached at sunilbarnwal@gmail.com.

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