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Load Frequency and Voltage Control Pricing in Deregulated Environment Electric Industry
Published in Baseem Khan, Om Prakash Mahela, Hassan Haes Alhelou, Sanjeevikumar Padmanaban, Deregulated Electricity Market, 2023
Aditya Kachhwaha, Ashish Godara, Akhil Ranjan Garg
The first section is related to the generating unit’s availability, which is constant in nature. This is linked with the availability of generating unit capacity for delivering power on a daily basis. Based on the generating plant average operation throughout the year, a decided fixed cost is payable to generating company. The payment depends upon the actual average plant generation through the year like that if generating unit produced the energy below the reference energy, then its payment would be lower according to the reduced generated amount, whereas if generating unit produced higher than the reference energy, then it would be entitled to have higher amount according to increased generating amount. This technique of deciding payment is known as Availability-Based Tariff.
Reforming for resilience: delivering ‘multipurpose hydropower’ under water and energy risks
Published in International Journal of Water Resources Development, 2022
Paul R. Wyrwoll, R. Quentin Grafton
Additional mechanisms may inform the governance of hydropower projects indirectly. These include: (i) weather insurance and other financial hedging instruments (Blomfield & Plummer, 2014; Foster et al., 2015); (ii) hydropower project ownership and financing structures (IFC, 2015; Markkanen & Braeckman, 2019); and (iii) power purchase agreements and energy tariffs. An example of (iii) that can support the provision of water services is an ‘availability-based tariff’ wherein hydropower project owners are paid according to the availability of generation capacity rather than the amount of electricity actually supplied; reservoir operations can then be determined by a regulator or other agency according to changes in public priorities (see Fernandes et al., 2018 for an illustration).
A realistic assessment of day-ahead profit for wind farms in frequency–based energy pricing environment
Published in Energy Sources, Part B: Economics, Planning, and Policy, 2021
The unscheduled energy transfer occurs when the actual energy supply deviates from its schedule. These cause power fluctuations and grid indiscipline. To overcome this, ABT was introduced by CERC in the year 2002–2003 in a bid to bring grid discipline (Availability Based Tariff 2003). Before ABT, power producers could inject as much power as they generated in low demand situations. State utilities could overdraw from the grid even during shortages and potentially causing outages without attracting any penalties. Afterward, ABT introduced a three-part tariff regime consisting of capacity charge, energy charge, and unscheduled interchange charge to maintain the grid discipline. While capacity and energy charges have been part of the power tariff, the unscheduled interchange mechanism is an addition that requires both power producers and beneficiaries to obey the day-ahead schedules. Any deviation from the pre-committed plans results in unscheduled energy charges, which are being imposed in the manner prescribed under the regulations of CERC (Availability Based Tariff 2003). The rate of this charge is specified by the CERC, and it varies inversely with the grid frequency at the time of supply (UI 2019). In the year 2014, ABT was amended as a deviation settlement mechanism (Central Electricity Regulatory Commission 2014). According to the recent amendments of IEGC (Indian Electricity Grid Code Regulations 2017), the wind farms are liable to pay this charge for deviating more than 30% of the schedule. Therefore, to calculate the cost of unscheduled energy transfer in the day-ahead energy market, the utility must estimate the day-ahead grid operating frequency. The procedure adopted for modeling the day-ahead grid frequency curve is described below:
Implementation of new electricity regulatory norms for deviation settlement mechanism: A case study of India
Published in Cogent Engineering, 2019
Manju Gupta, Sushma Gupta, Tripta Thakur
The several reforms were initiated by the Government of India (GOI), to boost generation capacity. In 2003, Availability-based Tariff was introduced to deal with grid operation problems. It is a three-part tariff scheme which consists of fixed cost or the capacity charge, variable cost or the energy charge and a frequency dependent component called as the deviation charge.