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...