ANNOUNCEMENTS
Deviation Settlement Mechanism came into force with effect from July 2016 [1]. It mainly depends upon three factors Scheduled based generating, transmitting and demand based market.
As per IEGC[3] regulation, Wind and solar generators which come under Regional Entities, their scheduling will be done by RLDCs. Whether W&S projects which are completely connected to states, their scheduling will be done by SLDCs. Same is the case for forecasting, RLDCs/ SLDCs can hire the agencies for F&S for better grid operation.
But in spite of all of these, the DSM Charges is raised due to different modelling system error and not accurate forecasting & scheduling by these QCAs companies. Over drawal or under injection by any Solar and Wind Generator to the grid, which causes additional charges & DSM charges, which is stipulated by CERC Regulation.
Deviation Settlement Management (DSM) charges are different in different States. Forecasting & scheduling (F&S) is done by different QCA’s , company’s on the behalf of RE generating station. QCA’s company has to follow the guidelines stated by CERC/SLDC[1]. Wind & Solar power generators Forecasting & scheduling is controlled by generally RLDCs but in some cases it is done by SLDCs. Different regulation for commercial DSM charges is implemented to maintain the Grid security (grid codes) for better sustainable transmission and controls the DSM deviations/UI.
Actual Penalty calculation is based on simple mathematical calculation. It always came negative values. That means, it is always payable by the QCA or Generators and different from DSM charges. It depends on PPA rate, net deviation & net deviation charges for interstate power transfer.
