Bihar state formalizes regulations to foster grid discipline and support renewable energy integration

Bihar state formalizes regulations to foster grid discipline and support renewable energy integration

Recently, the Bihar Electricity Regulatory Commission (BERC), notified regulations on “Intra State Availability Based Tariff and Deviation Settlement Mechanism (DSM)”. This step is in line with national priorities. These regulations lay down a commercial mechanism for settling any deviations in withdrawal and injection of electricity by the intra-state buyers and sellers, from their original schedules (allotment to buy or sell electricity). The regulations will support integration of renewable energy by penalizing the generators and the distribution companies for realizing inaccuracies in their forecast of generation and load respectively. The regulations will discourage the market participants to correct their demand-supply positions by leaning on the grid and instead improve forecasting of generation and load. The Deviation Settlement Mechanism (DSM) was first introduced by the Central Electricity Regulatory Commission (CERC) for inter-state transactions with a mandate to replicate a similar framework at the intra-state level. With the notification, Bihar has become one of the frontrunner states in implementing DSM. USAID’s Greening the Grid-Renewable Integration and Sustainable Energy (GTG-RISE) initiative, provided technical assistance to the BERC for formalizing the regulations, particularly through public consultations and finalization of the draft.

GTG-RISE is the central component of USAID’s Greening the Grid (GTG) program, a joint program with the the Ministry of Power to support the Government of India (GoI)’s efforts to manage large-scale RE integration into the grid. GTG-RISE is a key initiative under Asia EDGE (Enhancing Growth and Development through Energy) and is implemented by Deloitte Consulting LLP. For more information on the GTG-RISE program, please visit: www.gtg-india.com.