Madhya Pradesh Electricity Regulatory Commission issued draft (Framework for Resource Adequacy) Regulations, 2023 on 13th September, 2023 and invited comments from the public by 6th October 2023.
We commend MPERC for taking the initiative to be the first Commission in the country to publish draft regulations for Resource Adequacy (RA). These regulations provide a framework for MP DISCOMs to plan their investments as well as power procurement in a cost-optimal manner taking cognizance of available technologies as well as changes in demand. Hence, this is a welcome step in the right direction.
With this context in mind, Prayas (Energy Group)’s comments on the draft regulations focus on process related aspects and lack of clarity regarding specific proposals. Some of the key suggestions include:
- Need for capacity building and a trial period (1-2 years) without penalties for non-compliance.
- Including demand-side resources in RA studies.
- Appropriate methodology to determine capacity credits including calculating it with different combinations of capacities of different technologies. Methodologies such as those based on the Effective Load Carrying Capability (ELCC) metric can be effective in determining capacity credits for combinations of different technologies.
- Leveraging wider power sector modelling expertise in the country through public consultation and enhancing data transparency.