Key Highlights of DSM Charges

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Some of the key highlights of the DSM charges that were introduced for the following:

  1. Grid Discipline and Frequency Management:

    • The DSM charges are linked to grid frequency, with stricter penalties for deviations outside the prescribed frequency bands. The regulation incentivizes participants to maintain adherence to their scheduled electricity generation or consumption​
      King Stubb & Kasiva
      CSTEP

  2. Market-Based Pricing:

    • The charges are aligned with market mechanisms like the Integrated Day-Ahead Market and Real-Time Market prices. This ensures cost-reflective charges that encourage efficient power trading and minimize grid imbalances​
      King Stubb & Kasiva

  3. Renewable Energy Provisions:

    • Special provisions exist for intermittent renewable energy sources like solar and wind, as well as for hydro generators. These provisions accommodate the variability of renewable energy while ensuring accountability for grid contributions​
      CSTEP

  4. State-Specific Plans:

    • Emphasis has been placed on states developing resource adequacy plans to manage grid reliability and balance intermittent renewable energy inputs. This includes better forecasting of renewable energy and demand to avoid significant deviations​

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