Renewable Regulatory Fund: Its Importance and Industry Concerns

The Central Electricity Regulatory Commission (CERC) has approved the detailed procedure for the implementation of the Renewable Regulatory Fund (RRF) mechanism under Regulation 6.1 (d) of the CERC (Indian Electricity Grid Code (IEGC)), Regulations 2010 (also known as IEGC, 2010). The RRF came into effect on July 15, 2013 and is levied on wind and solar generators over a certain generation capacity (Fig 1). It will require generation forecasts from the wind farm or solar project on a day-ahead basis, which must be reported to the relevant authority. Deviation from the scheduled supply will result in a penalty or incentive Unscheduled Interchange (UI) charges, for which settlement will come from the National Load Despatch Centre (NLDC)-managed RRF fund account on the lines of UI Pool Account at regional level and by the State Load Despatch Centre (SLDC) at intra-state level. According to government authorities, the RRF will enhance system operation in terms of grid reliability and better demand-supply management. However, players in the Indian wind power market have a different opinion, and are simply opposing any penal action due to the current physical evacuation infrastructure system and the difficulty involved in forecasting wind generation every 15 minutes within limits. According to market players, it will have significant operational and financial implications for wind power projects. GlobalData has covered the RRF in brief and analyzed the ground realities for its implementation, while giving equal weight to industry opinion.

Scope

This viewpoint provides the information about the Renewable Regulatory Fund (RRF) procedure regulation implemented by Central Electricity Authority India on July 15 2013, wind industry view on the wind scheduling and forecast under the RRF regulation.

Reasons to buy

This viewpoint analyses the importance of the RRF regulation. Industry view and reaction and GlobalData view on the RRF.

Table of Contents

1 Table of Contents 1

1.1 List of Tables 1

1.2 List of Figures 1

2 Summary 2

3 Renewable Regulatory Fund: Its Importance and Industry Concerns 2

3.1 Renewable Regulatory Fund: A Brief Introduction 2

3.2 Wind Industry View on Renewable Regulatory Fund 4

3.3 GlobalData View of Renewable Regulatory Fund 5

4 Appendix 6

4.1 Abbreviations 6

4.2 References 6

4.3 Methodology 7

4.4 Contact Us 8

4.5 Disclaimer 9

List of Tables

Table 1: Abbreviations 6

List of Figures

Figure 1: Indian Wind and Wind Power Market, Applicability of Renewable Regulatory Fund 4

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