In June 2023, Ministry of Power (MoP), in consultation with Central Electricity Authority (CEA), issued the guidelines for Resource Adequacy  (RA) under Rule 16 of the Electricity (Amendment) Rules, 2022 . As per section 3.1 of the guidelines, CEA is mandated to publish a report specifying the capacity credits for different resource types on a regional basis along with the State/UTs contribution towards the national peak. Towards this, CEA has issued a draft discussion paper specifying methodologies to determine the above parameters and called for public comments by 17th November, 2024. 

The paper explores various methods to determine coincident peak demand and the capacity credit for VRE sources. Based on the analysis it recommends ‘the solar vs. non-solar methodology for estimating coincident peaks’ and the ‘critical days methodology for estimating the capacity credit of variable renewable energy (VRE) sources, particularly for solar and non-solar hours’. Broadly, we agree and support both these suggestions. However, Prayas (Energy Group)’s comments and suggestions highlight areas for additional consideration in future RA modelling efforts. In addition, we suggest certain changes towards ensuring a more robust framework. They include,

1. Consideration of multiple demand scenarios in the coincident peak determination methodology for future years.
2. Explore additional distinction across Monsoon and Non-Monsoon seasons just like the innovative approach for solar and non-solar hours while determining coincident peak and capacity credits.
3. Need to consider additional state specific relevant factors (fuel/water availability, vintage) while determining capacity credits of conventional generation sources.
4. Determination of energy storage capacity credits should be linked to state-wise peak hour duration.
5. Consideration of transmission capacity and need for transmission resource adequacy in future exercises.
6. Determine capacity credit of demand response technologies in future iterations.