On October 23, 2024, the Central Electricity Regulatory Commission (CERC) issued a notification to amend the Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2023. These new amendments, referred to as the “First Amendment Regulations, 2024,” are set to bring significant updates to the regulation of power generation and grid operations.
One of the key amendments is to Regulation 19, which pertains to the injection of infirm power. For most generating stations, except Renewable Energy Generating Stations (REGS) and Energy Storage Systems (ESS), the injection of infirm power cannot exceed one year from the date of first synchronization. For REGS and ESS, this period is reduced to 45 days from the first-time energization and integration (FTC) approval. The amendment also provides a mechanism for extending this period for REGS and ESS by allowing applications to be made to either the respective Regional Load Despatch Centre (RLDC) for an additional three months or to the CERC for longer extensions.
In Regulation 22, the changes clarify that for testing purposes, water reservoirs for hydropower stations do not need to meet full capacity levels. Instead, if insufficient water is available, a generating company can declare the Commercial Operation Date (COD) after demonstrating capabilities at current levels, with the obligation to fully test as soon as water levels permit. This flexibility ensures that power stations can become operational even when water resources are temporarily low.
Another important update is found in Regulation 27, where the scheduling of a generating station or unit will now start from 0000 hours of the second day (D+2) after the COD is declared, ensuring a smoother transition from commissioning to commercial operation.
Regulation 45 introduces compensation measures for thermal generating stations that are not operating at full capacity. The amendment ensures that thermal plants whose tariffs are adopted under Section 63 of the Electricity Act will be compensated for part-load operations in line with the contracts they have with buyers. If the contracts do not specify such terms, the CERC’s 2010 Grid Code will apply. Additionally, thermal plants with tariffs determined under Section 62 of the Act will also be compensated for under-performance following the applicable Tariff Regulations.
The amendments to Regulation 49 address the scheduling and operation of power plants, particularly in terms of off-peak and peak-hour operations. They introduce provisions to ensure that generating stations do not fall below the minimum operational levels during off-peak hours, while still being able to adjust to meet peak demand. This helps optimize power generation and distribution while minimizing the risk of overloading the grid during peak periods.
The CERC also introduced new limits on how frequently generating stations can revise their declared capacity and schedules. For most generating stations, the number of such revisions is capped at four per day, with a maximum of 60 revisions per month. For lignite, gas, and hydro-based stations, the limit is six revisions per day, with a monthly maximum of 120 revisions. These caps are intended to reduce uncertainty and improve grid stability, although exceptions can be made in cases where grid requirements justify more frequent revisions.
These amendments aim to enhance the efficiency and flexibility of India’s electricity grid, ensuring that power generation meets demand while accommodating the unique operational challenges of renewable energy sources and storage systems.
