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RRF Mechanism

Introduction

This Procedure is issued in compliance with Regulation 6.1(d) read with Clause 9 of Complimentary Commercial Mechanism (Annexure-1) of Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2010 (hereinafter termed as 'the IEGC 2010') and has been effective from 15.07.2013. (Ref CERC Order no L-1/18/2010 dated 09.07.2013)


Procedure for the implementation of Renewable Regulatory Fund (RRF)

As per Central Electricity Regulatory Commission (CERC), order no. L-1/18/2010 dated 18.02.2011, Suo-Moto Petition No. 209/2011 & Petition No. 2/MP/2012 dated 16.01.2013 and as per latest detailed RRF mechanism dated 09.07.2013, it is mandatory to schedule Wind Power Generation. Unscheduled Interchange (UI) accounting shall be maintained for under / over generation for which the penal / applicable charges shall be handled through RRF (Renewable Regulatory Fund). The fund shall be maintained and operated by National Load Dispatch Centre in accordance with provisions of Regulations on National level in line with UI Pool Accounting at the Regional level known as “Renewable Regulatory Fund”. This procedure has been implemented with effect from 15.07.2013 (Ref CERC Order no L-1/18/2010 dated 09.07.2013) and mock exercises are already in progress by various Generators / Developers.


Applicability

  • All wind generators which are connected to the Pooling stations with collective capacity of 10 MW and above at connection point of 33 kV level and above, either to the transmission or distribution system of the State or to the inter-State transmission system, on or after the date of coming into force of the Grid Code i.e. 3.5.2010.
  • Pooling Stations of Solar generating plants with capacity of 5 MW and above connected at connection point of 33 kV level and above either to the transmission or distribution system of the State or to the inter-State transmission system, on or after the date of coming into force of Grid Code i.e. 3.5.2010.
  • Coordinating Agencies appointed by the Wind and Solar Generators.
  • State Agencies responsible for UI settlements in respective States.
  • Regional Agencies such as RPCs and RLDCs etc.
  • National Load Despatch Centre (NLDC).

The RRF procedure shall not be applicable to the solar or wind generating plants selling power through collective transactions at the power exchanges as revisions in schedules are not envisaged for such transactions and the buyers and the sellers are anonymous.


What is RRF?

The Coordinating Agency shall be responsible for scheduling generation on behalf of the wind generators connected to concerned Pooling Station, up to a minimum accuracy of 70%. Therefore, if the actual generation is beyond +/- 30% of the schedule, UI charges shall be payable to/receivable by the Coordinating Agency for the concerned Pooling Station. For actual generation within +/- 30% of the schedule, no UI charges shall be payable to/receivable by the concerned Coordinating Agency.

UI charges for within this variation, i.e within +/- 30% would be applicable to the host state. However, the implication of these UI charges shall be shared among all the States/UTs of the country/DVC in the ratio of their peak demand met in the previous month based on the data published by CEA, in the form of a regulatory charge known as the Renewable Regulatory Charge operated through the Renewable Regulatory Fund (RRF).

A maximum generation of 150% of the schedule shall be allowed in a time block for injection by pooling station from the grid security point of view. For any generation above 150% of the schedule, if grid security is not affected by the generation above 150%, the only charge payable to the Coordinating Agency for the concerned pooling station shall be the UI charge applicable corresponding to 50- 50.02 Hz.