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Central Electricity Regulatory Commission to review regulation on wind power companies

According to reports, following opposition from various wind power producers lobbies, Central Electricity Regulatory Commission (CERC), the apex electricity regulator, would review its regulation on day-ahead forecast by wind power producers.

The CERC order has been challenged in three high courts of the country by three different organisations. Indian wind power association (IWPA) has filed an injunction against the regulation in Delhi High Court, Wind Independent Power Producers’ Association (WIPPA) in Madras High Court and a recent addition, Gujarat Mineral Development Corporation (GMDC) in Ahmedabad High Court. Wind power producers have challenged the regulation on grounds of both feasibility and legality. Some power producers have also questioned the preparedness of the national grid to handle modern data collection technology.

“CERC is of the view that the regulation is not workable in current terms. We would bring about changes at both legal and engineering level,” said a senior CERC official. He also said that there is a design default in the regulation where an accurate prediction and payment are not in sync.

“New propositions have come in from various stakeholders for some major changes in the regulation which are under review,” said the official.

Independent wind power producers have also written to the power ministry, requesting better grid infrastructure to implement a program like this.

“The decision is premature. Technical feasibility and the measurement mechanism designs are yet at a stage of hypothesis testing. Hence any implementation must be based on credible data acquired transparently and through a process devised post consultations with industry stakeholders. There is a high probability that it would create a significant financial burden, enough to make projects unviable and turn profit making ventures sick,” said the recommendation letter to the ministry of power reviewed by ET.

CERC in August this year asked all the wind power producers to provide a day-ahead forecast of their power production with immediate effect. The move was also aimed at linking wind farms to the national grid. States buying the wind power fed in the grid would also pay ‘Renewable Regulatory Fund” to the host state of the wind project.

Wind power producers have been requesting central regulator to postpone this decision, as wind farms are unable to proceed with forecasting and scheduling of wind power. “There is a high probability that it (the regulation) would create a significant financial burden, enough to make projects unviable and turn profit making ventures sick,” said the letter.

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