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What is Deviation Settlement Mechanism (DSM) ?

The Deviation Settlement Mechanism (DSM) regulations in India for solar and wind power have evolved significantly over the years to address the unique variability and intermittency of renewable energy sources. Here is a timeline of key updates and releases by the Central Electricity Regulatory Commission (CERC) and State Electricity Regulatory Commissions (SERCs): 2014 : CERC introduced its first DSM regulations specifically aimed at maintaining grid discipline, establishing charges for frequency deviations. Initially, these regulations focused broadly on the energy sector without specific provisions for renewable energy. 2015 : Recognizing the need for renewable-specific regulations, CERC revised the DSM to include differentiated charges and relaxed penalties for deviations in wind and solar generation. These rules allowed a deviation margin of up to 15% without heavy penalties for renewable generators, acknowledging the variability of these sources. 2022 : CERC introduced updated DSM...

Regulations & Amendments for Forecasting and Scheduling in India by CERC & SERC

 The timeline for regulations and amendments related to Forecasting and Scheduling (F&S) in India is shaped by both the Central Electricity Regulatory Commission (CERC) and various State Electricity Regulatory Commissions (SERCs). Below is an overview of the key milestones: 1. CERC Regulations: 2015 : CERC issued the Forecasting, Scheduling, and Deviation Settlement Mechanism (DSM) Regulations . This regulation applied to Inter-State transmission and aimed at maintaining grid discipline by penalizing deviations from scheduled generation. 2016-2017 : CERC made amendments to the DSM regulations to fine-tune the provisions, particularly with respect to the renewable energy sector, introducing tighter frequency bands and refining penalties for deviation. 2018 : CERC amended the DSM regulations again, placing a higher emphasis on better forecasting accuracy and including new provisions for renewable energy-rich states. 2020 : CERC issued CERC (Deviation Settlement Mechanism and Rela...