The Madhya Pradesh Electricity Regulatory Commission (MPERC) has released a draft amendment to the Forecasting, Scheduling, and Deviation Settlement Mechanism (DSM) Regulations, 2018, introducing major revisions applicable to wind, solar, hybrid, and standalone energy storage systems (ESS). This is the Third Amendment (AG-44(iii) of 2025) and aims to reflect the growing penetration of renewables and storage technologies in the power system.
⚖️ Legal Basis
The draft is issued under the powers conferred by Section 181 of the Electricity Act, 2003, and will come into effect upon publication in the MP Gazette.
📍 Key Amendments at a Glance:
🔹 Expanded Applicability
- Applies to:
- Wind projects ≥ 10 MW
- Solar projects ≥ 5 MW
- Hybrid projects ≥ 10 MW
- Standalone ESS ≥ 10 MW
- Projects selling power outside MP ≥ 1 MW
🔹 New and Revised Definitions
- Introduces terms like:
- Area Clearing Price (ACP)
- Reference Charge Rate (RR)
- General Seller
- RE Projects (with or without ESS)
- Deviation for ESS
- Renewable Energy Generating Station (REGS)
- Updates definitions for:
- Available Capacity (AvC)
- Deviation-RE (Absolute Error)
- Pooling Station
🔹 Deviation Calculation for ESS
- Deviation charges now explicitly include standalone ESS and ESS coupled with RE.
- Special treatment for pumped hydro ESS until March 31, 2026.
- ESS overdrawal = under-injection, underdrawal = over-injection for DSM accounting.
🛠️ Operational Mechanisms Updated
📋 Forecasting and Scheduling
- QCA (Qualified Coordinating Agency) to:
- Submit 15-min block-wise forecasts
- Include combined forecasts for ESS, wind, solar, and hybrid
- Submit separate schedules for charging of ESS
⚡ Metering & Monitoring
- Separate SEM meters required for wind/solar/hybrid and ESS at pooling stations.
- AMR (Automatic Meter Reading) capability mandatory.
🧾 Deviation Charges
- Linked to:
- PPA rate (Section 62 or 63)
- Or APPC at national level for open access without PPA
- Or market-discovered prices for sellers without regulated tariffs
🧮 Virtual Pooling
- All RE projects (wind, solar, hybrid, with or without ESS) and standalone ESS will be treated as a virtual pool within the State Deviation Pool Account, allowing intra-pool netting of deviations.
💰 Payment Security Mechanism Introduced
QCAs will need to furnish Bank Guarantees (BGs) based on project size:
| Project Type | BG Amount (per MW) |
| Solar (w/ or w/o ESS) | ₹ 10,000 |
| Wind (w/ or w/o ESS) | ₹ 40,000 |
| Solar-Wind Hybrid (w/ or w/o ESS) | ₹ 25,000 |
| Standalone ESS | ₹ 5,000 |
- BG must be valid for 3 years, reviewed annually.
- SLDC can encash BG if DSM charges remain unpaid beyond 60 days.
🧑⚖️ Deviation Charges Scenarios
- Deviation charges apply for both:
- Under-generation (shortfall) — payable to State Deviation Pool
- Over-generation (excess) — receivable from State Deviation Pool
- Detailed in Tables IA, IB, IIA, IIB, III, and IV in operating procedures.
- No schedule injection by ESS = deviation treated as per linked RE source.
🗓 What’s Next?
Stakeholders are invited to submit objections/suggestions before the final notification. This draft significantly modernizes the regulatory framework to support grid stability and energy transition, considering emerging technologies like hybrid systems and storage.