Cabinet okays pact on large-scale grid linking of clean energy

The Cabinet today approved signing of a pact between Forum of Regulators (FOR) and National Associations of Regulatory Utility Commissioners (NARUC) for large-scale grid integration of renewable energy.

"The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval for signing of a Memorandum of Understanding (MoU) between FOR and National Association of Regulatory Utility Commissioners (NARUC) in the area of large-scale grid integration of renewable energy," an official statement said.

The MoU envisages to promote information exchanges in the areas of renewable energy integration regulations and balancing using gas, storage, and demand-side approaches, energy imbalance markets, it said.

It will enhance the efforts of India's power system for better management of large-scale integration of renewable energy into the power grid, it added.

According to statement, the MoU provides areas for cooperation in the area of large scale integration of renewable energy including design of frameworks for renewable energy procurement-international experience and regulatory interventions for renewables development, such as state and national renewable purchase obligations (RPOs), renewable energy certificate (REC) framework.

Besides, it will also cover the load forecasting techniques and processes; contracting/power purchase agreements; renewables forecasting methods and how renewable energy forecasts are used by operators; renewable energy integration -- regulations and balancing using gas, storage, and demand-side approaches; energy imbalance markets.

The pact will cover regulatory framework for ensuring grid discipline by generators including deterrents in the form of penalty for breach of discipline; ancillary services including physical mechanisms, regulations and markets and data analysis and cost-benefit analysis for regulatory decision-making.

The FOR was constituted by the Ministry of Power on February 16, 2005 with the primary objective of harmonization of regulations in the power sector framed by the Central Electricity Regulatory Commission (CERC), State Electricity Regulatory Commissions (SERCs) and Joint Electricity Regulatory Commissions (JERCs).

In the past, in order to work on areas such as Demand Side Management and Energy Efficiency, the FOR had signed an MoU with The California Energy Commission, The California Public Utilities Commission and the University of California (as Management and Operating Contractor for Lawrence Berkley National Laboratory) on Electricity Demand and Supply Efficiency Improvement to explore potential future collaboration in the field of energy sector planning. NARUC is the National Association in United States representing the State Public Service Commissioners who regulate essential utilities.

The proposed MoU is under the larger bilateral agreement on Energy Efficiency Commercialization and Innovation agreement signed between United States and India. It is being pursued as a component of 'Greening the Grid' project, launched under US-India 'Partnership to Advance Clean Energy Deployment' (PACE-D).