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HERC Unveils Regulatory Framework For Resource Adequacy 2024 To Ensure Reliable Electricity Supply And Integrate RE In Haryana

Source：solarquarter

The Haryana Electricity Regulatory Commission (HERC) has recently established the “Framework for Resource Adequacy Regulations, 2024” under the powers provided by the Electricity Act, 2003. This framework aims to ensure a reliable electricity supply in Haryana by mandating comprehensive planning for energy generation and transmission to meet projected demands. The regulations cover short-term, medium-term, and long-term horizons to assess demand, plan resources, procure power, and ensure system reliability.

The primary objective of these regulations is to structure a robust framework for resource adequacy, enabling the state to reliably meet electricity demand while adhering to specified reliability standards. The regulations stipulate a planning approach that considers the optimal generation mix and accommodates environmentally friendly technologies, such as renewable energy sources and energy storage solutions. The regulations also define the roles of various entities in the power sector, including generating companies, distribution licensees, and the State Load Dispatch Centre.

Demand forecasting forms a crucial part of this framework, and HERC mandates distribution licensees to assess demand for different consumer categories. They may use various methodologies, including advanced statistical and machine learning techniques, to predict future demand. In addition, distribution licensees must prepare demand forecasts across different time horizons—short, medium, and long-term—taking into account multiple factors such as demand-side management, economic growth, and seasonal variations.

On the resource planning side, distribution licensees are required to create a comprehensive map of existing, planned, and retiring energy resources. They must also establish a “Capacity Credit” system, which quantifies the reliability of different energy resources, including renewable sources like wind and solar. This system ensures an adequate buffer in the generation capacity to meet peak loads and account for potential resource variability, particularly with renewable energy integration.

The framework also outlines guidelines for procurement planning, emphasizing an optimal resource mix to reduce stranded assets. The HERC mandates a mix of long-term, medium-term, and short-term contracts for power procurement, with long-term contracts covering the majority of demand. Distribution licensees are also encouraged to consider capacity sharing and trading to minimize the risks associated with resource inadequacy.

Monitoring and compliance are key to maintaining the integrity of the framework. The State Transmission Utility (STU) and the State Load Dispatch Centre (SLDC) are responsible for aggregating forecasts and assessing resource adequacy. Non-compliance with the regulations may result in penalties, encouraging distribution licensees to adhere strictly to the planning and procurement requirements.

Overall, HERC’s new framework represents a forward-looking approach to managing Haryana’s electricity resources, aligning with both national standards and emerging renewable energy requirements.

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