The Maharashtra Electricity Regulatory Commission has issued a draft notification proposing the first amendment to the State Grid Code Regulations of 2020. These changes will be applicable across the state and will come into effect from the date of publication in the official gazette. The key objective is to enhance grid operation standards, provide clarity on technical terms, and establish mechanisms for compensation during part-load operations of generating units.
Several new definitions have been added. These include terms such as “Ancillary Services,” referring to services essential for maintaining grid quality, reliability, and security; “Area Control Error,” based on national standards; and “Gate Closure,” which marks the end of bidding time at the power exchange. Other terms defined include “GNA Regulations,” “Minimum Turndown Level,” “Security Constrained Economic Despatch,” and “Security Constrained Unit Commitment.”
A significant amendment is related to the technical minimum schedule for thermal generating stations connected to the intra-state transmission system. It mandates that such stations must operate at or above 55% of their maximum continuous rating, unless a lower minimum is specified by the Central Electricity Authority or permitted by the Commission with OEM certification. If these units are directed to operate below 85% of availability, they can claim compensation, provided separate records and data are maintained and submitted to the Commission.
The proposed compensation covers several aspects, such as Station Heat Rate (SHR), Auxiliary Energy Consumption (AEC), and additional fuel used during start-ups beyond a limit. Tables outlining permissible degradation in SHR and AEC based on unit loading levels are included for coal, lignite, and gas-based units. The provision also includes norms for secondary fuel oil consumption based on plant size and start-up conditions.
Generators operating below technical minimum levels may opt for Reserve Shut Down, with start-up fuel costs eligible for compensation under defined norms. For plants whose tariffs are not determined by the Commission, compensation provisions need to be incorporated in their Power Purchase Agreements.
Furthermore, the amendments detail a comprehensive scheduling and despatch timeline for all sellers and buyers connected to the intra-state system. Each day, processes such as forecasting, drawal requisitions, and publication of schedules are to be followed within specified time blocks. Provisions specific to renewable generators, excluding wind and solar, are also highlighted.
The amendments also provide for revision mechanisms in case of forced outages or constraints in transmission systems. The revised schedules shall take effect from the 7th or 8th time block after the request, depending on when it is submitted. These rules apply equally to generators and buyers in both short-term and long-term contracts.
Lastly, Annexure-4 has been updated to detail the compensation mechanism for degradation in heat rate, auxiliary consumption, and additional fuel use due to part-load operation. This mechanism applies to stations whose tariff is adopted by the Commission, and to others, provided the terms are covered in contractual agreements. The financial gains resulting from these compensations are to be shared equally between the generator and the beneficiaries.
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