Policy Analysis on Deviation Settlement Mechanism (DSM) in India for Solar and Wind Energy: Historical to Present
Introduction The Deviation Settlement Mechanism (DSM) in India addresses grid stability challenges by ensuring discipline in power scheduling and forecasting. With the increasing penetration of renewable energy sources (RES) like solar and wind, DSM policies have evolved to manage variability and intermittency. This analysis traces the history and evolution of DSM for solar and wind energy in India, highlighting regulatory frameworks, challenges, and future outlooks. Historical Context Pre-2010: Conventional Grid Management Focus on Conventional Energy: Grid management relied on thermal and hydro power plants, which are more predictable than RES. Need for Deviation Management: As renewable energy deployment began, the unpredictability of wind and solar generation started affecting grid stability. 2010-2014: Initial Renewable Energy Penetration Wind Energy Growth: Wind energy capacity surged, especially in Tamil Nadu and Gujarat, causing frequency deviations in the grid...