Agenda Note for the Meeting to be held on 16thAugust, 2017 at NRPC Sectt., New Delhi

A technical committee under the chairmanship of Member CERC, Shri A. S. Bakshi was formed at the direction of Forum of Regulators (FoR) in November, 2015 for facilitating implementation of Regulations for Forecasting, Scheduling andDeviation Settlement of Wind & Solar generating stations at the State level,implementation of ABT framework and Ancillary Services in member States, amongothers.This Sub-Group is to inter-aliaexamine feasibility and modality of cooperation among states in the respective regionfor ensuring optimum utilization of generation resources with least cost options forbalancing across the region.

Accordingly, a Sub-Group has been constituted for Northern region headed by Member Secretary, NRPC with the following members as detailed below:

a) Member Secretary, NRPC-Chairman of the Sub-Group.

b) One representative from concerned SERCs of Northern Region.

c) One representative from concerned SLDCs of Northern Region(b) & (c) as above to be nominated by the concerned SERC.

d) One representative from NRLDC-To be nominated by NLDC.

e) One representative from NLDC.

f) One representative from FOR (optional/observer).

List of members of the group as per nomination received from NLDC/SERC/SLDC is at Annexure-I.

Capacity and Generation of RE Resources in NR: As per the NRLDC daily report following details of installed capacity as on 10-08-2017 of renewable generation is available.

State Small Hydro IC(MW)

Wind IC(MW)

Biomass IC(MW)

Solar IC(MW)

Punjab - 0 288 560 Haryana - 0 40 0 Rajasthan - 4017 99 1295 Uttar Pradesh - 0 26 102 Uttarakhand 180 0 127 100 Delhi - 0 16 2 Himachal Pradesh 486 0 0 0 Jammu and Kashmir 98 0 0 0

Following agenda points would be discussed in the meeting:

1. Actual Installed Capacity and Generation: Members from SLDCs in the sub-group may provide details of installed capacity and generation (MW) including pattern of generation (MW) on monthly basis for last two years of their respective state. High /Low generation periods may be identified with estimated quantum.

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2. Variability of Demand and Generation: Members from SLDCs in the sub-group

may provide Demand and Generation (Conventional and RE) pattern of states for assessing balancing requirements during different seasons/months in a year. Assessment of surplus power in different seasons/months may also be done.

3. Availability of metering, telemetry & forecasting facility of Renewable Energy (RE) Generation. The recommendations as per the procedure for implementing Scheduling Accounting Metering and Settlement of Transactions in Electricity (SAMAST) are essential for regional cooperation amongst the states to ensure optimum utilization of generation resources. The states may furnish the status of implementation of the recommendations of the SAMAST report. Further, The Model Forecasting & Scheduling (F&S) and Deviation Settlement Regulations for Wind and Solar generators at the State level were endorsed by the Forum of Regulators during the 50th meeting of the FOR. Rajasthan in Northern Region have notified the draft regulations on deviation settlement. Other states may also update the status in this regard. States may furnish status of availability of metering, telemetry and forecasting facility for renewable generators. Status of load forecasting in the states may also be furnished.

4. Availability of reserves (On-line & Off-line): CERC constituted a Committee vide letter No, 25/1/2015/Reg. Aff. (SR)/CT.RC dated 29th May 2015, under the chairmanship of Shri A.S. Bakshi, Member CERC, to examine the technical and commercial issues in connection with Spinning Reserves. The Committee recommendations w.r.t. maintaining reserves at the State level is outlined below:

“d. Each region should maintain secondary reserves corresponding to the largest unit size in the region and tertiary reserves should be maintained in a de-centralized fashion by each state control area for at least 50% of the largest generating unit available in the state control area.”

Maintaining reserves at the State level would complement cooperation amongst the States of NR, for ensuring optimum utilization of generation resources. Ramping and cycling capability by different type of generators may also be assessed for utilisation of these resources for balancing. Members from SLDCs may provide status. Members may discuss potential sources for balancing power e.g. flexing of thermal generation, hydro generation, gas generation, AGC in generation (in line with Dadri-II), Pump storage Schemes etc.

5. Commercial arrangement among states for import/export of balancing power: All Northern Region (NR) constituents may enter into mutual agreements with each other to avail surplus power available with other states of NR. Sample Overarching agreement as presented in the agenda of the Special meeting of SRPC Sub group committee under Technical committee of FOR dated 31.07.2017 is attached at Annexure -II. Members may discuss.

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Annexure-I Nominated Members of the Sub-Group

S.N. NAME DESIGNATION ORGANISATION TELE(O) FAX.NO

1. Sh.R.K.Porwal DGM NRLDC 011-26537351

011-26852747

2. Sh. Kaushik Dey Manager NLDC 011-

26536901

3. Sh. Abhishek Moza Deputy Secretary DERC/Delhi 011-

41601674 011-

41080417

4. Sh. Bharti Sambhyal

Executive Director HPSERC/ HP 0177-

2627978 177-2627162

5. Sh. P.K.Dingri Director(Technical) UERC/ Uttarakhand 0135-

2641115 0135-

2641314

6. Sh.N.K.Makkar Executive Engineer HVPNL

0172-2560622

7. Sh.Rajesh Kapoor Chief Engineer HP SLDC 98164-68662 0177-2837649

8. Sh. Anupam Sharma SE PTCUL

9. Sh. S.K.Gupta SE (REMC) RVPNL 0141-2740067

0141-2251601

10. Sh. S. C. Saini Executive Engineer

Elect. (O), Chandigarh

0172-267905 0172-

2655531

0172-2637880

Nominations awaited S.N. DESIGNATION ORGANISATION TELE(O) FAX.NO

1. Secretary CERC 11-23353503, 23753915 11-23753923

2. Secretary DERC/Delhi 011-41601640 41080416 (Fax)

3. Secretary RERC/Rajasthan 0141-2740067 0141-2741018

4. Secretary HERC/Haryana 0172-2582531 0172-2572359, 2563052, 2582532

5. Secretary PSERC/Punjab 0172-2648321 (0172) 2664758, 2645163, 2602435

6. Secretary UPERC/UP 0522-2720426 0522-2720423

7. Secretary JKSERC/J&K 0191-2470160, 2470183

0191-2470163, 01912546188, 01942506133

8. Secretary JERC/Chandigarh 124-2342851-53 0124-2342853

9. Chief Engineer PSTCL 0175-2365340

10. Chief Engineer (SO) PDD, Jammu

0191-2476213, 01942-2474233

11. Executive Director

Delhi Transco Limited 01123221069, 23236462

12. Director UPPTCL 0522-2287880,2288736

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Web site: e-mail: mssrpc-www.s c.kar.nic.in ka nic.in

"ft!No. SRPC/SEII/2017/

BY FAX/SPEED POST

Government of India Central Electricity Authority

Southern Regional Power Committee

Bengaluru- 560 009 Ph: 080- Fax: 080-22287205 22259343

R'1 iCfl / Date 25.07.2017

1. Shri D .Prabhakar Rao 2 Shri K.Vijayanand

Chairperson, SRPC & CMD, TSTRANSCO, Hyderabad CMD, APTRANSCO, Vijayawada

3 Shri Jawaid Akhtar Managing Director, KPTCL, Bengaluru 4 Dr. K. Ellangovan CMD, KSEB Ltd. , Thiruvananthapuram

5 Dr. M.Saikumar Chairman, TNEB, Chennai

Sub: Special Meeting at Hyderabad on 3151 July 2017

Sir '

In continuation to this office letter dated 18th July 2017 on the subject, the

following documents are enclosed for kind perusal:

a) Draft Overarching Agreement

b) Note on the proposed Regional Scheme

Kindly make it convenient to attend the Meeting.

Thanking you.

Encl: as above

Copy to: AGM i/c, SRLDC.

Yours faithfully ,

~ (W.Jffi". m-;s.R. BHAT) - - ­

Member Secretary

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Draft OVERARCHING AGREEMENT

THIS AGREEMENT is entered into on this the ____ day of __ .2017

I. AMONG

1.1. The Kerala State Electricity Board Limited (KSEB) represented by its Power Purchase depattment of and having its principal offices at Vydyuthi Bhavanam, Pattom, Thiruvananthanpuram-695 004 (hereafter refened to as the "KSEB" which expression shall, unless repugnant to the context or meaning thereof, include its administrators, successors and assigns) of One part;

1.2. The Andhra Pradesh Power Co-ordination Committee (APPCC) represented by its ___________________ .and having its principal offices at Vidyut Soudha, Khairatabad, Hyderabad-500082 (hereafter referred to as the "APTRANSCO" which expression shall, unless repugnant to the context or meaning thereof, include its administrators, successors and assigns) of One part;

1.3. The Telangana State Power Coordination Committee (TSPCC) represented by its ~-~-cc-c-"""""C"-c--~-=--c-·-c--o--=,.--,--c-'and having its principal offices at 4th Floor, Vidyuth Soudha, Khairatabad, Hyderabad-500082, Telangana State (hereafter referred to as the "TSTRANSCO" which expression shall, unless repugnant to the context or meaning thereof, include its administrators, successors and assigns) of One part;

1.4. The Power Corporation of Karnataka Limited (PCKL) represented by its __________________ _,and having its principal offices Chief Engineer (Elect.), LDC, KPTCL, Bengaluru (hereafter referred to as the "PCKL" which expression shall, unless repugnant to the context or meaning thereof, include its administrators, successors and assigns) of One patt;

1.5. The TANGEDCO represented by its =-----:::-::----=-===----c:--c---:-:-c-=-cc:-:==and having its principal offices 7th Floor, Eastern Wing, NPKRR, Maaligai, TANGEDCO, TNEB Ltd, 144, Anna Salai, Chennai-600002, Tamil Nadu (hereafter referred to as the "T ANGEDCO" which expression shall, unless repugnant to the context or meaning thereof, include its administrators, successors and assigns) of One part;

All the above patties are herein after called as 'Entities'.

2. BACKGROUND

2.1. Government of India (Gol) has set up a target of harnessing 175 GW of Renewable Energy by 2022. In line with this, Southern Region has so far achieved nearly 24 GW of Renewable Capacity as on 31/03/2017. During high injection of RE, some states are having to back down large amount of State Thermal Generation and high quantum of ISGS power and also impmts under L TA/MTOA in order to maintain Load-Generation balance. Whereas other states are willing to absorb excess generation to conserve their Hydro resources. Such concept of Regional co-operation can be extended during other periods also as deemed fit.

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2.2 In the 271h Southern Regional Council meeting held on 28-12-16 at Thiruvananthapuram

under the aegis of Hon'ble Home Minister of Union of India, the matter regarding Optimum harnessing ofRE generation without endangering Grid security was discussed.

With a view not to lose this "Real time-oppottunity" by empowering SLDC operators of the surplus I deficit states to exchange power, as required, and to cut shmt the time required for entering into power purchase agreements, it was suggested that a generalised Over-arching Agreement be entered among the SR states.

2.3 Subsequently a meeting of SR states was held on I 0-02-17 in Ministry of Power, New Delhi, wherein it was agreed that such power exchanges would start on an experimental basis and sample agreements would be signed among the States.

2.4 A Sub Group had been formed with patticipation from SERCs/ SLDCs/ RLDC/ NLDC/ RPCs to examine feasibility and modality of cooperation among state in the respective region for ensuring optimum utilisation of generation resources with least cost options for balancing across the region. Issue of regional cooperation for better harnessing of renewable energy facilitating optimum harnessing of renewable integration, without endangering grid security, within the frame work of regulations, was deliberated.

2.5. It was opined that SR constituents could enter into mutual agreements with each other to avail the surplus power available with other SR states. The agreement could be open ended and if no transactions are made through this scheme there would not be any commercial liability to any of the constituents. Possibility of implementing over-arching agreements and working out sample rate contract on experimental basis was to be explored.

2.6. All states agreed that entering into overarching agreements which could be used judiciously by the SLDCs in the shortest possible time within the regulatory time work may be beneficial to them.

2. 7 Power may be delegated to SLDCs to decide on the quantum of MW to be exported or imported and also the duration of time.

2.8. Constituents could enter into banking/swapping agreements also and the balance unreturned power could be settled at mutually agreed rate. There could be a provision in the agreement for reverse transfer of power which could be utilised by either the buyer or seller in time of contingencies.

3. TERM OF AGREEMENT

3.1. This Agreement shall come into effect from the date it is executed and delivered by the last of all the Entities and such date shall be referred to as the Effective Date.

3.2. There shall be no defined expiry date for this agreement, which shall be valid from the Effective Date until the date when either of the Entities involved, exercises their right to terminate, for which, all the other Entities Uointly) may agree, in writing.

4. MODES OF TRANSACTIONS

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4.1 All the SLDCs shall carry out Load Forecasting and ensure RE forecasting by the concerned Generators on a Day Ahead basis. The same shall be reviewed and revised in real time basis also.

4.2 SLDCs would assess the position of Renewable Generation vis-a-vis the Electricity Demand in advance on a Month ahead/ ahead or Day Ahead or on real time basis. In case surplus generation is anticipated or experienced in any state and power requirement exists in any other state, the surplus state(s) may intimate the deficit or prospective buyer state. Both Entities may agree upon the quantum and duration of power supply and mode of transaction ie Option-! or Option-2.

4.3 The exchange of power may be transacted in three options ie. Option-! : as a stand alone expott, Option-2 :Banking or Swapping

4.4 In either option, the transaction shall be through Short Term Open Access mode. The impotting entity would punch the Short Term Open Access (STOA) application to SRLDC as Advance/ First Come First Serve/ Day Ahead/ Contingency application in the Web based Open Access pmtal of SRLDC, with copy of consent from the SLDC of the state from which Power is being expmted and the SLDC of the state to which the power is being impmted.

4.5 SRLDC, on receipt of the Short Term Open Access (STOA) application from SLDCs, shall process the application, within the timelines specified in the prevailing Regulations .

4.6 The lmpmting state shall pay the STOA charges, as applicable as per the extant regulations, to SRLDC for each application. The same shall be considered for disbursement to CTU/STU/SLDC on post-facto basis.

4. 7 Option 1 Stand alone Export ln this mode, the power may be expmted from surplus state to deficit state on a stand alone mode without any obligation to return the power.

4.8 Option 2 Banking or Swapping In this mode, the power may be exported from surplus state to deficit state on a 'Give­and Take mode'. The power may be returned in instalments at a mutually agreed Quantum, duration and time. The total power to be returned would be mutually agreed between the entities.

Balance energy yet to be returned after the end of the month may be shown in the REA and would be carried forward in the fmthcoming months. At the end of financial year, the residual energy, if any, would be settled fully.

4. 9 ln all the above options, the rate of energy is as per item 7 ofthis agreement

4.10 ln case the expmting State has any difficulty to continue with the expmt due to reasons such as sudden fall of RE generation or tripping of any Generating unit or raise in demand etc, they may advise the importing state to submit another STOA application in opposite (reverse) direction for such a quantum so as to nullify the impact of such change. The impotting state shall oblige with such request.

5. Scheduling and Despatch

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5.1 The quantum, as approved, shall be scheduled from time block as per extant regulations.

5.2 Loss treatment shall be as per the provisions of the extant Regulations.

5.3 Any errors in Real time Scheduling or implemented Schedules may be brought to the notice ofSRLDC immediately.

6. Metering and Energy Accounting

6.1 Metering is as per the existing interface meters with ISTS and the power scheduled under this agreement is deemed to have been delivered or drawn on first charge basis. The approval-wise schedules of these transaction would be shown in the monthly Regional Energy Account (REA) issued by SRPC.

6.2 Drawl/Injection by states shall be a aggregated net sum of all the interface meters with ISTS ie composite net values of all transactions and will not be indicated discretely for the sale pmiion.

7. Rate of power

7 .I The price for settlement, may either be based on • mutually agreed upon rates or • In respect of item No.4.7, the PX prices of lEX on the particular day for the

particular time block, ie. MCP Market Clearing Price (Unconstrained) • In respect of item No.4.8, the residual energy during banking I swap at the end of

the financial year would be settled at the weighted average price of lEX (Indian Energy Exchange) available in the MMC repmi ofCERC.

8. Settlement

8.1 The Net Energy scheduled, over the month, shall be shown as a pa!i of Monthly Regional Energy Account, issued by SRPC.

8.2 The STOA charges collected by SRLDC shall be borne by the impmiing entity. The energy charges shall be settled among the Exporting and Impmiing entities bilaterally.

8.3 The amount, as specified, shall be settled bilaterally between the states, on monthly basis, within 10 days of presenting the bill. 8.4 For the option 2 item No.4.8, the bill will be presented

9. Dispute resolution

9.1 SRLDC I SRPC Secretariat shall be indemnified harmless from all disputes of the issues mentioned above. SRLDC shall be responsible only for scheduling the STOA transactions as per the prevalent Regulations. SRPC Secretariat shall be responsible for issuing weekly DSM accounts and monthly REA.

9.2 Both Entities shall reconcile the accounts of payments made and received on a monthly basis.

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9.3 All efforts shall be made by Importing and Expmting Entities to smt out any disputes bilaterally in an amicable manner. Any unresolved differences thereafter may be brought to the notice of SRPC Forum.

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Scheme for Regional Cooperation for better harnessing of Renewable Energy­Southern Region

Minutes of the Meeting held in the Ministry of Power on I Ou' February.20 17 to follow up

matter relating to optimum harnessing of Renewable Energy Integration in SR without endangering grid security (w.r.t. 27th Southern Zonal Council Meeting) are enclosed at

Annexure-I.

The following may kindly be noted from the MoM dated 30.03.2017 of the above

Meeting:

~ Regional cooperation for better harnessing of renewable energy facilitating

optimum harnessing of renewable integration, without endangering grid security within the frame work of regulations.

~ Entering into overarching agreements for the purpose of RE integration, DSM Management etc.

~ Possibility of implementing bilateral agreements and working out sample rate contract on experimental basis.

This issue was also discussed in the Special TCC Meeting held in SRPC on 20th May

2017.

Guidelines for shott-tenn Procurement (i.e. for a period of more than one day to one year)

of Power by Distribution Licensees through Tariff Based Bidding Process were notified vide MoP Resolution dated 30.03.2016. Scope of the guidelines state, 'the guidelines are

being issued under the provision of Section 63 of the Electricity Act, 2003 for

procurement of power by Distribution Licensees (Procurer) for shott term i.e. for a period of more than one day to one year. The Guidelines shall apply for procurement of short

term power requirement through competitive bidding.

Issues with Renewable Energy (RE) Integration

As is well appreciated, RE has characteristics of intermittency and variability. Seasonal inter-day, intra-day, hourly and block variations of wind generation is observed I experienced. Morning and evening ramps of Solar and sudden variations during cloud

movements/cover are also being observed/experienced since RE penetration is increasing day by day. With target of around 60,000 MW of RE in SR by 2022, balancing and

reserve requirements would get compounded. Balancing and reserve requirements of the

states in the region would be required technically and commercially to meet challenges of

RE targeted.

Typical ramp for Solar plant of250 MW are given below:

Ramp Time Approx. Average Ramp rate Remarks No. blocks Time (Hrs) ramp %installed

(MW/Biock) capacity

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I 26 to 27 6:15 to 6:45 2 28 to 38 6:46 to 9:30 3 39 to 45 9:3ltol1:15 4 46 to 53 II : 16 to

13:15 5 54 to 58 13:16 to

14:30 6 59 to 69 14:31 to

17:15 7 70 to 73 17:16 to

18:15

DAM and TAM Timelines

00:30 Hrs 10:00Hr,c,

+5.5 2.2% +12.5 5.0% +6.1 2.4% 2 to 3 !%to 1.5%

-5.4 -2.2%

-. - 12.5 -5.0%

-6.3 -2.5%

12:00 Hrs 15:00 Hrs 16:00 Hrs 20:00 Hrs

Slow ramp up High ramp up Slow ramp up Generation more or less same Slow ramp down

High ramp down

Slow ramp down

23:00 Hrs

Market Close

At present, there is a bilateral market, DAM market (power exchanges) and Intra-day

contingency market to take care of the intermittency I variability of RE. There is no Ancillary Market or any product available with the System Operator (SLDCs) to take care

of such situations. Following are the available options at the disposal of System Operator

(SLDCs):

Product I Options Constraints DA Market (Power exchanges) ./ Cleared a day prior-therefore, it has

limited role 111 intra-day, hourly and block deviations in RE

./ Availability subject to transmission constraints

./ Cannot be redispatched - not useful if RE generation more than forecast

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Deviation Settlement Mechanism (DSM) ./Needs to be inadve11ent to take care of REI Load forecast variations

./ Deviation limits are not to be violated

./ No charges receivable if underdrawal is beyond certain limit

./ Penal DSM charges for underdrawal at frequency greater than 50.10 Hz

./Sign reversal ofDSM every 12 blocks

./ Messages for violation are issued Intra-day Contingency Market ./ Extended market made operational by Extended market introduced CERC

./It takes around 4 hours for the transaction

./ Cannot be red ispatched STOA transactions ./ Can be redispatched only on D-2 day

./ It has limited role in intra-day, hourly and block deviations in RE

./ If RE generation is more than forecast -cannot be cm1ailed

·---LTA/MTOA ./Limited flexibility

./ Technical minimum issues

./ Ramping issues

./ Reserve shutdown issues

./ Cycling issues

./ Degradation of SHR/ Aux Consumption

./ Compensation issues

./ Balance between meeting the peak hours load and Max RE integration, minimum load etc

Since intra-day/hourly/block RE intermittency/variability is to be managed by System Operator (SLDCs), SLDCs need to be equipped to handle the situation.

The following is mentioned in Statement of Reasons of Framework on Forecasting, Scheduling and Imbalance Handling for Variable Renewable Energy Sources (Wind and

Solar) released by Hon'ble CERC

The Commission has noted the suggestions. Many stakeholders have emphasized the need for centralized forecasting. Some stakeholders have requested for socializing the cost of forecasting as well as balancing. The Commission would like to clarify that the proposed framework requires forecasting by RLDC as well as wind/solar generator. Centralized forecasting is relevant from a grid management perspective and is very important for assessing balancing needs. The objective of forecasting by the generator is primarily to minimize deviations from schedule.

Some stakeholders have suggested a franmuork as prevalent in some states in the US and in some countries in Europe, wherein the RE generators are allowed to generate as per resource availability and the cost of balancing the variabilihJ and uncertainty is socialized across all

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market participants. This is definitely a good alternative but needs a matket design where all other participants also operate by similar rules and more importantly the system operator has enough teserves to l1andle the system imbalances caused either due to load variation o1· val'iation on account of infirm renewable energy sources. Another pre-requisite for such a market is a centralized dispatch of all generation and possibly in some cases existence of a separate financial contract settlement system like contract-for-differences (CFD). Indian power market does not have these features at this moment. As such, we need to design a framework which fits into the existing market operating rules and can also provide a roadmap for optimum utilization of resources and a better balancing regime in future. The Commission has a vision to put in place a regula ton} framework jot spinning reserves as well as other ancillary services in the marlcet. As the ecosystem develops on these lines, the system operators shall have flexible resources on their command to manage load-generation balance. It is with these realities in mind that the Commission has finalized the framework which seeks to address the requirements of the existing market structure and the need for large-scale integration of RE sources.

Therefore, a scheme is suggested which could be at the disposal of SLDCs (with due authorization from the Discom/Power purchase Authorities). This scheme would be

helpful in the following circumstances:

v' Sudden variations in RE - difference in forecast and actuals. Forecast of RE is still to be matured and SCAD A inputs of RE are to be fully made available to the

SLDCs/RLDCs. v' Sudden variations in load - Load Forecasting are under development in most of

the states.

v' Sudden unit outages v' Sudden transmission outages v' Decision between bringing back the unit Vs utilization of reserve available 111

other states. v' RSD avoidance v' Using the reserves available in other states v' Backing down of units as per MOD if the power under this scheme is cheaper

v' Hydro optimization

v' Sudden changes in weather

Alternative 1: under STOA

);> All SR constituents would enter into mutual agreements with each other to avail the surplus power available with other SR states. The agreement could be an open

ended without any commercial liability to any of the constituents if no

transactions are made through this scheme.

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~ Rates could be the MCP rates of the power exchange (lEX) tor each time block (without market splitting) or any other mutually agreed rates. The sale of RE power at the negotiated rates.

~ Constituents could enter into banking/swapping agreements also and the balance unreturned power could be settled at mutually agreed rate.

~ All the SR states would make assessment of availability and requirement for seasonal/weekly/daily basis (96 blocks). For this, accurate load forecast and RE forecast would be required.

~ SLDC would be delegated power to utilize the scheme keeping in view the short period surplus and deficits. A Whatsapp group of the SLDC official (to whom the power is delegated) was formed to exchange information on surplus/deficit.

~ Either of the buyer or seller would furnish the STOA application (including the concurrence of the other state) to SRLDC.

~ SRLDC would process the application within 6 time blocks. ~ There could be a provision in the agreement for reverse transfer of power which

could be utilized either the buyer or seller in time of contingencies. The requesting state would furnish the STOA application to SRLDC which would be processed within 6 time blocks.

~ Commercial settlement would be carried out by the SR states among themselves. The charges as applicable for STOA application would be payable for each of the application.

Alternative 2: as a Balancing Product at the disposal of SLDCs

The System Operator needs a Balancing Product at their disposal to take care of intra-day, hourly and block deviations in RE. Not through STOA but a product under Ancillary Market for balancing (as a Regulation through the Commission).

It may be noted that ./ There are no traders/intermediaries involved . ./ Since rates are known upfront there is transparency in the transaction ./ In banking/swapping agreement there is energy transaction only ./ The reserve requirement is in both the direction is required

Way forward

It was pointed out that power is to be procured under section 62 & 63 of EA, 2003. Guidelines for sh011 term (i.e. for a period of more than one day to one year), procurement of power by Distribution Licensee through Tariff based bidding process stipulate procurement for more than one day. Alternative-\ under contingency category of STOA transaction is for maximum of one day. However, it was suggested that to have clarity, alternative-\ may be put fmth to MoP for consideration/issue of directions.

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Alternative-2 may be recommended to the Hon'ble Commission for consideration as a balancing product in the ancillary market.

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.AAJNE)(.URE -' lb

,~,

~g, No.l0/29/2016-PG Government of India

Ministry of Power

~

Shram Shakti Bhawan, Rafi Marg, New Delhi 30"' March, 2017

To,

l. Principal Secretary to Government of Karnatka, Bangalore 2. Principal Secretary to Government of Kerala, Thirvananthapuram 3, Principal Secretary to Government of Andhra Pradesh, Vijayawada 4. Principal Secretaty to Government ofTami Nadu, Chennai 5. Principal Secretary to Government ofTelangana, Hyderabad 6. Principal Secretary to Government ofPuducherry, Puducherry 7. Secretary, CERC, 3•·•&4•" Floor, Chanderlok Building, 36 Janpath, New

Delhi, 8, Chairman, CEA, Seva Bhawan, R.K Puram, New Delhi-66 9, CMD, PGCIL, Saudamini, Plot No. 2, Sector-29, Gurga.oncl2200 1 ICY.'(::EO, POSOCO Ltd, National Load Despatch Centre, B-9, QutL1b

V Institutional Area, Katwaria Sarai, New Delhi-110016. 11. Shri s,K. Soonee, Advisor (POSOCO)

Subject: Minutes of the meeting held orr 10.02.2017 in Ministry of Power.

Sir/Madam,

I am directed to fonvard herewith minutes of the follow up meeting held under the Chairmanship of Smt. Jyoti Arora, Joint Secretaiy, Ministry ol' Power on 10.2.2017 for matters related to optimum harnessing of Renewable Energy Integration in SR without endangering grid security} for information and necessary actlon.

Copy to:

>~~- e -r·"-''" (Sanjeev Jain)

Under Secretary to the Govt. of India Telefax: 23730264

l' PPS to JS (Trans)/ Director (PO), MoP, Shram Shakti Bhawan, New Delhi.

I I

I !

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Draft Minutes of the Meeting held under !he Chairmanship of Smt. Jyoti Arora, Joint Secretary, Ministry of Power on 10.02.20174 to follow up the matters related to optimum harnessing of Renewable Energy Integration in SR without endangering grid security".(w.r.t 27'h Southern Zonal Council meeting)

List of Participants is enclosed at Annex-1.

2. JS (Trans), MoP, Go\ welcomed all the participants and requested Advisor, POSOCO to set the context In light of the deliberations in the 27'h meeting of Southern Zonal Council held in Thlruvananthapuram on 28.12.2016. During this meeting, it was explained that the Technical Committee, appointed by MoP, has recommended a 15-point action plan to facilitate Large Scale RE Integration (enclosed in Annex - II), and its expeditious implementation. It was further informed !hat, in accordance the directions of Hon'b\e Home Minister, this meeting is being held in MoP. JS, MoP sought the views and proposal from all.

3. CMD, Kerala State Electricity Board Ltd, (1\SEBL), explained that KSEBL's hydro resources are limited and need to be conserved. Whenever wind generation increases in Tamil Nadu, it will result in underdraw! by that state, leading to violation of DSM limits. During such situation, an overarching agreement will enable SRLDC to schedule the excess Wind generation of Tamil Nadu to 1\SEB and such energy can be returned by KSEB at a later date or compensated commercially.

4. POSOCO welcomed the proposal for regional co-operation for better harnessing of Renewable Energy facilitating optimum harnessing of Renewable Integration, without endangering Grid security, but within the framework of the Regulations.

5. Joint Chief (Regulatory Affairs), CERC too said that it is a good proposal that the host State would collaborate with the neighbouring State(s) wilh rich hydro I flexible resources. This requires declaration of availability of DC of each generator along With implementation of Scheduling, Metering, .Accounting and settlement system (SAMAST) of the State generators, in each State.

[Action by: All SLDCs To be completed by Dec 2017]

G. TSTRANSCO representative said that during high wind season, a large capacity of Thermal generation is being shut down for maintenance works etc. and huge amount of ISGS power is being surrendered on real time basis.

7. Andhra Pradesh representative stated that the co"operation suggested by KSEBL can be extended among all states. He stated !hat from July to September period, AP would be in excess of 1000 MW, which can be utilized by other states as well. Andhra Pradesh representative further stated that RE generators shall give primary response,

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similar to conventional generation, and requested CEA to expedite the amendments t.o Grid connectivity standards. CEA representative replied that amendmenls will soon be issued.

[Action by: CEA To be completed by; end of May'H]

8. Tamil Nadu r<'!presentatlve opined that KSEB can absorb only in the ranGe of 250MW (due to transmission constraints •to I within 1\erala), whereas Tamil Nadu has much more surplus wind (to the tune of 3QOOMW continuouslY during the monsoon season). Further, during the three months of wind generation, all other states In SR are also in surplus condition.

9. Closing of all dormant Inter-Regional lines such as 220kV Upper Sileru"Balimela

between SR and ER would help not only increaBe tra·nsfer margin but also contribute to

enhanced stability. Andhra Pradesh representative opined that Sileru complex Is being used during peak hours and the import from ER on this line may lead to overloading of the

next section I.e. Lower Sileru cBommuru SIC beyond 160MW. Further, it was informed that there is a RaW for restoration of Lower Sileru-Rampachodavararn line, which Is in damaged condition. This line if revived and if reconductoring is carried out for the existing line between Lower Sileru-Bommuru, it will remove the constraint He also stated that Lower Sileru-KTS 0/C lines have ir10quent maintenance problems making it vulnerable to faults. JS (Trans) suggested to put all effort:;; to revive the Upper Sileru-Ballrnela lin\l-

[Action by: APTRANSCO To be completed by: end ofMay'18]

10. JS (Trans) enquired Whether the I<SEBL has adequate hyctro generation which is not linked to irrigation requirements and whether conserving hydro is required during the monsoon season. MD, KSEBL :;;tated that in 1\erala hydro generation is not linked to

irrigation requirements. During lean season, conserving water would help the state.

i 1. It transpired that a commercial framework and <1n incentive scheme Is to be designed :;;o that the Pumped hydro scheme embedded within a state (lil<e 1\adamparai) can contribute to regional balancing. Three out of four pumps at Kadamparai, are available

for operation.

12. POSOCO requested that Demand forecast is to be carried out, as stipulated under IEGC. It was also stated that at present all the Renewable generation sources are

embedded in the State Control Area. Therefore, generation from RE sources shall also forecasted. According to the forecast, revision in schedules (upto 16 per day) oan be

undertaken. [Action by: all SR stateo

To be compiE;ted by: end of May'17l

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13. Joint Chief (RA), CERC stated that several options for addressing this issue could be explored. Belter forecasting; effective utilisation of market mechanisms like 24x7 trading session in power exchanges and Ancillary Services mechanism can help better utilisation of the assets in States. The need is to design and delegate decision making at

appropriate level to be able to tal1e real lime decision

14. TN representative stated that it takes upto three hours to complete the process.

POSOCO mentioned that the same can be applied under Contingency category of the

Bilateral STOA transaction and it takes only 6 time blocks to Implement and schedule the

Contingency transactions. As regards overarching agreements, the stales have to enter into for such short term transactions.

[Action by: all SR states To be completed by: end of June' '17]

15. JS (Trans) enquired whether adequate metering is available for billing and

settlement. Tamil Nadu representative said that they had applied for funding from PSDF for !he implementation of Availability Based Tariff mechanism. POSOCO informed that the

proposal has been approved and requested other states also to propose similar projects

for funding under PSDF. [Action by: all SR states except TN lobe completed by: end of May'17]

16. JS (Trans) en(tuired whether the real lime data of wind I solar plants upto 1 MW capacity is available at the control centres, TN representative explained that Main, Checl< and Standby meters capable of recording 15 minute time block-wise data in most of the

locations are not aVailable, and billing is done based on monthly/periodic Joint Energy

Meter Readings (JEMR). It was suggested that Main/Check and standby meters capable of recording 15 minute lime block energy may be installed in accordance with CEA

Metering regulations.

[lnstallatfon of Main/check/ Standby meters: all SRstates To be completed by: end of Dec' 17]

17. On a query with respect to telemetry from theRE generators, the following status

was informed: TN- 3000 MW out of 8000 MW capacity, AP- 180DMVV out of 2100MW, Telangana - 500MW out of the 1100 MW and l<arnataka all of 3000 MW data was

available. JS (Trans) directed that stales lo ensure 100%. data from all the stations.

[Action by: all SR states and Wind developers Tb be completed by: end of June'17]

·te. JS (Trans) advised the slates to explore the possibility of implementing bilateral

agreements since mechanism is already available, She suggested a capacity building

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workshop for the SR states would facilitate in this regard. Slates can sit together and attempt to wori< out a sqrnple rate contract on experimental basis.

The meeting ended with thanl<s to the Chair.

[Workshop by: SRLDC by May'17 Sample Rate contract by: all SR states

To be completed by: end of May'H]

............ X--··· X-----X---------

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Participants List

1. Smt. Jyo\i Arora, Join\ Secretary, MoP -in chair

2. Shri lrtan Ahmad, Director, MoP

3. Shri Sanjeev Jain, Under Secretary, MoP

4. Ms. Anjuli Chandra, CEA

5. Shri Hemant Jain, CEA

6. Shri KVS Baba, CEO, POSOCO

7. Shri s.K Soonee, Advisor, posoco 8. Shri V. Balaji, DGM, SRLDCIPOSOCO

9. Shri l<ashish Bhambhai, PGCIL

10.Shri V. Thiagarajan, PGCIL

11. Shri Vijay Mengani, CEA

12.Dr. K Ellangovam, CMD, KSEBL

13. Shri N. Suresh, GM(T), KREDL

14.Shri S Subrahmanyam, APTRANSCO

15. Shri AKV Bhaskar, APTRANSCO

i6.Shri P. Suresh, TSTRANSCO

17.Shri P. Rajagunanidhi, TANTRANSCO

18.Shri S.R Anand, KSEBL

19.Shri Jawaid, KPTCL

20. Shri Hanumantha, CEEII<PTCL

2 '1. Shri Deepak. T.C, Resident Engineer, 1\PTCL

22.Shri Sushant,Chatterjee, Joint Chief. CERC

Annexure-!

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