TN SLDC has filed a petition for the FY 2024-25 on the DSM Charges for Wind and Solar Generators. The petition proposes to re-fix the ceiling rates of DSM charges for the FY 2025-26 with effect from 01.04.2025 and DSM charges to be re-fixed to 1000% of ceiling rate from the generators who do not appoint QCA beyond 90 days. Our comments and suggestion on the matter are broadly outlined below:

  1. Remove cap for deviation charges, or increase the cap (solar (10 p/unit) and wind (15 p/unit))
  2. Consider increasing penalty charges, by either linking penalty charges to PPA or contract rate, or increasing absolute charges
  3. Better public data reporting is needed, both at individual plant and aggregated level
  4. Need for further detailed analysis and preparing for a future ready DSM framework
    • Linking deviation charges to frequency: Initiate study to assess the implication of RE deviations on the grid frequency.
    • Aggregating Solar QCAs in the state for more substantial savings in deviation charges
    • Including Hybrid RE and standalone ESS under DSM framework
    • Shift energy accounting to scheduled generation

Our comments and suggestions in this matter are detailed in the attached submission.