OPEN ACCESS & CHANGE IN DSM
(DEVIATION SETTLEMENT
MECHANISM) wef 01 Jan 2019
Presented To: VPSS
Presenter: AJAY KUMAR
Date: 03 January 2019
Location: WGO 122
1
Agenda
What is Open Access
What is DSM (Deviation Settlement Mechanism)
Changes in CERC DSM Regulation wef 01 Januray 2019 and impact
Shared Services Division Slide 2 TATA Steel
What is Open Access
• Concept introduced in EA 2003
• Open Access means the non-discriminatory provision for the use of transmission lines or distribution
system or associated facilities with such lines or system by any licensee or consumer or a person engaged
in generation in accordance with the regulations specified by the Appropriate Commission.
• In Open Access, power is scheduled for every 15 minutes block of a day, 1 day before the actual use.
• Any deviation of Actual from the Schedule is settled as per DSM (Deviation Settlement Mechanism)
Regulation.
• Open Access is of 3 type:
• Long Term – More than 7 year
• Medium Term – 3 Month to max 5 Year
• Short Term – Minimum is any part of the day & Maximum 3 months
• Applicability for TSJ
• Power purchase at 400 kV
• Power Sale in 132 kV
Shared Services Division Slide 3 TATA Steel
What is DSM (Deviation Settlement Mechanism), earlier called UI (Unscheduled Interchange)
• DSM : Commercial method of controlling frequency near 50 Hz.
• Penalty for over consumption or under generation, against schedule, when freq is low – with penalty
increasing as freq is lower. Penalty increases up to Rs 8.24 / unit.
• Incentive for under consumption (with limit) and over generation (with limit) when freq is low.
Incentive increases to Rs 8.24 / unit.
• Penalty for under consumption or over injection, against schedule, when freq is high – No money if
freq is higher than 50.05 Hz and penalty if freq is higher than 50.1 Hz is Rs 1.78 / unit
• This is calculated for every 15 minutes block
9000
Price Vector for Deviation Charge
8000
7000
Paisa / Unit
6000
5000
4000
3000
2000
1000
0
49.79
49.80
49.81
49.82
49.83
49.84
49.85
49.86
50.06
49.87
49.88
49.89
49.90
49.91
49.92
49.93
49.94
49.95
49.96
49.97
49.98
49.99
50.00
50.01
50.02
50.03
50.04
50.05
50.07
50.08
50.09
50.10
50.11
49.70
49.71
49.72
49.73
49.74
49.75
49.76
49.77
49.78
Frequency
Shared Services Division Slide 4 TATA Steel
DSM other Key rules (existing)
• Deviation limits:
• For frequency range 50.05 to 49.7 : +/- 12% of schedule or 150 MW whichever is lower. However if
schedule is lower than 400 MW, limit is 48 MW (applicable to us).
• Normal Deviation charges within the limit. Additional penalty for exceeding limits.
• If freq is more than 50.05 Hz, Zero limit for over-injection / under drawl (i.e. over-generation / under-
injection) and no limit for under-injection and over-drawl.
• If Freq is lower than 49.7 Hz, Zero over drawl or under-injection is allowed
• For any Over-drawl or under-injection at freq < 49.7 Hz, penalty is 100 % of Rs 8.24 / unit
• Required to change sign of Deviation in every 12 time blocks. But no Commercial implication for violating
it.
• This is calculated for every 15 minutes block
Shared Services Division Slide 5 TATA Steel
DSM – Major changes effective from 01 January 2019
• Frequency band for deviation reduced by 50 %.
• From 50.1 – 49.7 Hz to 50.05 HZ – 49.85 Hz
• DSM rate will be dependent on Market Price with Cap of Rs 8 / unit at 49.85 Hz
• Earlier DSM Rate was fixed for 50 Hz @ Rs 1.78 / unit. Now it will be equal to Avg price of last Day
price in Power exchange. If ACP is more than Rs 8 / unit, it will be capped to Rs 8 / unit
• Price vector from 50 Hz to 49.85 Hz will be obtained by joining St Line between two point.
• Price vector from 50 Hz to 50.05 Hz by joining St Line between two point
Price Vector for Deviation Charge
9000
8000
Paisa/Unit
7000
6000
5000
4000
3000
2000
1000
0
Frequency
Old UI Rate New DSM 29.12.2018 New DSM 30.12.2018 New DSM 31.12.2018
Shared Services Division Slide 6 TATA Steel
DSM Price vector: Case-I
Under Injection by a Seller or Over Drawl by a buyer:
Payable
900
824.04p/u
Price(p/kWh) 800p/u
800
700
P=600p/u
600
500
New Reg with P=200p/u
400
Existing Reg
300
P=200p New Reg. With P=600p/u
200 /u
178p/u
100
P=Avg. ACP in p/kWh
0
Freq(Hz)
For frequency below 49.85 Hz, 100% Addl. @ 800 p/kWh will be applicable
Shared Services Division Slide 7 TATA Steel
DSM Price vector: Case-II
Over Injection by a Seller or Under Drawl by a buyer:
Payable(-ve) & Receivable(+ve)
1000
800 p/u 824.04 p/u
Price(p/kWh)
800
P=600 p/u
600
400
P=200
200 p/u
178 p/u
0
New Reg with P=200p/u
-178p/u
-200
-200
p/u Existing Reg
-400
New Reg. With P=600p/u
-600
-600 p/u
P=Avg. ACP in p/kWh
-800
Freq(Hz)
Shared Services Division Slide 8 TATA Steel
DSM – Major changes effective from 01 January 2019 (contd…)
• Need to change sign of deviation after every max 6 time block.
• Every violation of sign change will result in 20 % penalty of avg Deviation charges of the Day.
Impact – Rs 5000 to Rs 1 Lakh per day per violation
• So, if deviation is in same direction through out the day, there will be 16 violation and equal to
300 % penalty. Impact – Rs 75000 to Rs 16 Lakh per day with 16 violation
• With the Deviation rate at 50 Hz expected to be much higher than earlier (178 Paisa/unit), by proper
scheduling, we may save some money
Shared Services Division Slide 9 TATA Steel
DSM Change – Action Taken / To be taken
• Action Taken / Planned to minimise impact of Sign change in 6 time block –
• Scheduling philosophy decided at 400 kV to almost eliminate penalty – every 6th time block either do
higher scheduling or lower scheduling than expected load
• Standing clearance from DVC to purchase power from market immediately whenever any of its 4
contracted generator in 400 kV is out (Received on 19/12/18)
• Audible alarm to warn Shift Officer when-ever sign change does not happen continuously for 4 time
block (developed in-house and implemented on 26/12/18)
• Permission to Sell surplus power of DVC at 400 kV in market – Awaited
• May sometime require Restricting PH#6 generation / LF’s – It will be last resort
• Shift Officer at LDC will be stressed significantly
• IT intervention / Analytics to automate changes required – Will be started
Shared Services Division Slide 10 TATA Steel
Actual result of 02/01/2019:
Scheduled Energy Charge Actual Energy Charge
2488 Rs/MWH 400KV POWER SCHEDULING DT. 02/01/2019 2414 Rs/MWH
400.00 51.00
380.00
360.00
340.00 50.50
320.00
300.00
280.00 50.00
260.00
240.00
49.50
HZ
220.00
MW
200.00
180.00
49.00
160.00
140.00
120.00
48.50
100.00
80.00
60.00 48.00
40.00
20.00
0.00 47.50
10:15
10:45
11:15
11:45
12:15
12:45
13:15
13:45
14:15
14:45
15:15
15:45
16:15
16:45
17:15
17:45
18:15
18:45
19:15
19:45
20:15
20:45
21:15
21:45
22:15
22:45
23:15
23:45
0:15
0:45
1:15
1:45
2:15
2:45
3:15
3:45
4:15
4:45
5:15
5:45
6:15
6:45
7:15
7:45
8:15
8:45
9:15
9:45
Schedule Drawal Actual Drawal 50 Hz Line Actual Frequency 49.97Hz (Corresponding Freq for Avg Energy Cost + Trans. & Opr Cost)
Shared Services Division Slide 11 TATA Steel
History of changes in DSM regulation:
Year Freq Limit Rate (Rs / Unit Freq Step
April 2009 50.30 to 49.20 Hz 0 to 7.35 0.02 Hz
May 2010 50.20 to 49.50 Hz 0 to 8.73 0.02 Hz
April 2012 50.20 to 49.50 Hz 0 to 9.00 0.02 Hz
Feb 2014 50.01 to 49.70 Hz 0 to 8.24 0.01 Hz
Jan 2019 50.05 to 49.85 Hz 0 to 8.00 0.01 Hz
Shared Services Division Slide 12 TATA Steel
DSM – Expected changes in near Future
• 5 minutes scheduling instead of 15 minutes
• Average Deviation in a Day cannot be more than 3% of schedule for Consumption and 1% of schedule for
Generator. Commercial implication for violation
• Frequency limit will be further narrowed
• Price Vector for Deviation Charges may be linked to ACP for each time block rather than same Deviation
Charges Price Vector based on Day Avg ACP for all time block
Shared Services Division Slide 13 TATA Steel
Shared Services Division Slide 14 TATA Steel
