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SM payment at the rate of 303.04 Paise/kWh. For any price of power Exchange of having market share
shortfall, the generating station shall have to pay back at of 20% & more shall be used for linking to the DSM
the same rate. price vector.
➤ Charges for deviation for each 0.01 Hz step shall
There is thus a strong commercial incentive to back be equivalent to the dynamic slope determined by
down generation/increase drawal during high frequency joining the identified price points at 50 Hz (daily avg.
situations and to maximize generation/reducing drawal ACP), frequency below 49.85 (800p/u) and 50.05 Hz
during periods of low frequency conditions and thus (0p/u) on daily basis.
helps in stabilising grid frequency. The ACP related DSM rate vector has been shown in
Figure 3. The DSM rate follows one particular curve for
DSM AMENDMENTS one particular ACP for a particular day.
To further strengthen the grid discipline and improve grid Figure 4: DSM rate curve for different ACPs; one perticular
stability, the DSM regulation amended several times by DSM rate curve to be followed for a particular ACP
further tightening the frequency limits and introducing
various penalty clauses. As per the latest 5th amendment Also, the following penal clauses related to deviation
(after 01st June, 2020), the key features of DSM regulation volume limit were introduced:
was modified as follows:
1. For Over injection by generating companies or Under
➤ Charges for deviation below 49.85 Hz is fixed at drawal by Discoms:
800p/u, for frequency 50.05 Hz and above charges ➤ Charges for deviation receivable for over
for deviation is 0 p/u. injection / under drawl by seller/buyer in excess
of 12% of schedule or 150MW whichever is less
➤ Deviation price vector of a particular day is linked to shall be 0
the Area Clearing Price (ACP) in Day Ahead Market of ➤ When schedule <= 400MW volume capping is
Power Exchange of that particular day. fixed to 12% of schedule, i.e. at 48MW
➤ Additional deviation charges payable for over
➤ Charges for deviation at 50.00 Hz will be the Area injection/ under drawl in any time block when
Clearing Price (ACP) discovered at DAM (Day-ahead f>=50.05 Hz at ACP rate.
market) of power exchange (Max ceiling being 800
p/u) of each particular day.
(ACP is the daily average energy charge rate of 96
blocks of power exchange and settled as DSM rate
for 50.0 Hz of that particular day)
➤ Charges for deviation for each 0.01 Hz step is
changing every day based on the slope of the
deviation price vector.
➤ The Day-ahead market price of the Power Exchange
having a market share of 80% or more in energy terms
on a daily basis shall be taken into consideration for
linking to the DSM price vector.
➤ If no single Power Exchange is having a market share
of 80% or more, the weighted average day-ahead
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shortfall, the generating station shall have to pay back at of 20% & more shall be used for linking to the DSM
the same rate. price vector.
➤ Charges for deviation for each 0.01 Hz step shall
There is thus a strong commercial incentive to back be equivalent to the dynamic slope determined by
down generation/increase drawal during high frequency joining the identified price points at 50 Hz (daily avg.
situations and to maximize generation/reducing drawal ACP), frequency below 49.85 (800p/u) and 50.05 Hz
during periods of low frequency conditions and thus (0p/u) on daily basis.
helps in stabilising grid frequency. The ACP related DSM rate vector has been shown in
Figure 3. The DSM rate follows one particular curve for
DSM AMENDMENTS one particular ACP for a particular day.
To further strengthen the grid discipline and improve grid Figure 4: DSM rate curve for different ACPs; one perticular
stability, the DSM regulation amended several times by DSM rate curve to be followed for a particular ACP
further tightening the frequency limits and introducing
various penalty clauses. As per the latest 5th amendment Also, the following penal clauses related to deviation
(after 01st June, 2020), the key features of DSM regulation volume limit were introduced:
was modified as follows:
1. For Over injection by generating companies or Under
➤ Charges for deviation below 49.85 Hz is fixed at drawal by Discoms:
800p/u, for frequency 50.05 Hz and above charges ➤ Charges for deviation receivable for over
for deviation is 0 p/u. injection / under drawl by seller/buyer in excess
of 12% of schedule or 150MW whichever is less
➤ Deviation price vector of a particular day is linked to shall be 0
the Area Clearing Price (ACP) in Day Ahead Market of ➤ When schedule <= 400MW volume capping is
Power Exchange of that particular day. fixed to 12% of schedule, i.e. at 48MW
➤ Additional deviation charges payable for over
➤ Charges for deviation at 50.00 Hz will be the Area injection/ under drawl in any time block when
Clearing Price (ACP) discovered at DAM (Day-ahead f>=50.05 Hz at ACP rate.
market) of power exchange (Max ceiling being 800
p/u) of each particular day.
(ACP is the daily average energy charge rate of 96
blocks of power exchange and settled as DSM rate
for 50.0 Hz of that particular day)
➤ Charges for deviation for each 0.01 Hz step is
changing every day based on the slope of the
deviation price vector.
➤ The Day-ahead market price of the Power Exchange
having a market share of 80% or more in energy terms
on a daily basis shall be taken into consideration for
linking to the DSM price vector.
➤ If no single Power Exchange is having a market share
of 80% or more, the weighted average day-ahead
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