2637

PUNJAB GOVT. GAZ. (EXTRA), MARCH 15, 2024 (PHGN 25, 1945 SAKA)

EXTRAORDINARY

Published by Authority

CHANDIGARH, FRIDAY, MARCH 15, 2024 (PHALGUNA 25, 1945SAKA)

( 2637 )

PUNJAB STATE ELECTRICITY REGULATORY COMMISSION

NOTIFICATION

The 15th March, 2024

No. PSERC/Secy/Regu: 187.– In exercise of the power conferred on it by section 181 read with section

61, 66 and 86 of the Electricity Act 2003 (36 of 2003) and all other powers enabling the Commission in this

behalf, the Punjab State Electricity Regulatory Commission hereby makes the following Regulations, namely

Punjab State Electricity Regulatory Commission (Framework for Resource Adequacy) Regulations, 2024.

SHORT TITLE, COMMENCEMENT AND EXTENT

1.1. These Regulations shall be called the "Punjab State Electricity Regulatory Commission (Framework

for Resource Adequacy) Regulations, 2024.”

1.2. These Regulations shall come into force from the date of notification in the Official Gazette.

1.3. These Regulations shall extend to the whole State of Punjab.

Objective

2.1. The objective of these Regulations is to enable the implementation of Resource Adequacy framework

by outlining a mechanism for planning of generation and transmission resources for reliably meeting

the projected demand in compliance with the specified reliability standards for serving the load with

an optimum generation mix.

2.2. The Resource Adequacy framework shall cover a mechanism for demand assessment and forecasting,

generation resource planning, procurement planning, its monitoring and compliance.

Scope and Applicability

3.1. These Regulations shall apply to the generating companies, distribution licensees, State Load Dispatch

Centre, State Transmission Utility, other grid connected entities and stakeholders within Punjab.

Definitions

4.1. In these Regulations, unless the context otherwise requires,

“Act” means the Electricity Act, 2003 (No.36 of 2003) and subsequent amendments thereof.

“Authority” or “CEA” means Central Electricity Authority referred to in sub-section (1) of

Section 70 of the Act.

2638

PUNJAB GOVT. GAZ. (EXTRA), MARCH 15, 2024 (PHGN 25, 1945 SAKA)

“Bidding Guidelines” means the Guidelines for determination of tariff by bidding process for

procurement of power by Distribution Licensee(s) issued by the Ministry of Power, Government

of India under Section 63 of the Act.

"Capacity Credit” or “CC” means a percentage of a resource’s nameplate capacity that can

be counted towards resource adequacy requirements.

“Commission” means the Punjab State Electricity Regulatory Commission.

“Electric Power Survey” or “EPS” means a periodic electric power survey conducted by the

Central Electricity Authority to assess the electricity demand on medium and long-term basis

for each DISCOM/State/Union Territory/Region and for the country.

“Expected Energy Not Served” or “EENS” means the expected amount of energy (MWh)

that may not be served for each year within the planning period for Resource Adequacy planning.

“Long-Term” means duration exceeding five years for development of demand forecasting

and generation resource planning.

“Long-Term Power Procurement” means procurement of power under any arrangement or

agreement with a term or duration exceeding five years.

“Long-Term Distribution Resource Adequacy Plan” or “LT-DRAP” means plan for

assessment of long-term resource adequacy by the distribution licensee.

“Loss of Load Probability” or “LOLP” means probability that a system’s load may exceed

the generation and firm power contracts available to meet that load in a year.

“Medium-Term” means duration exceeding one year and upto five years for development of

demand forecasting and generation resource planning.

“Medium-Term Power Procurement” means procurement of power under any arrangement

or agreement with a term or duration exceeding one year and up to five years.

“Medium-Term Distribution Resource Adequacy Plan” or “MTDRAP” means plan for

assessment of medium-term resource adequacy by the distribution licensee.

"Net Load” means the load derived upon exclusion of actual renewable generation (MW)

from gross load prevalent on the Grid during any time block.

“Normalized Energy Not Served” or “NENS” is normalization of the EENS by dividing it by

the total system energy (MWh).

“Planning Reserve Margin” or “PRM” means a percentage of the capacity over and above

the peak demand as may be prescribed by Authority or approved by the Commission from time

to time for the purpose of generation resource planning.

“Power Purchase Agreement (PPA)” means the agreement entered into between the

Procurer(s) and the Seller pursuant to which the Seller shall supply power to the Procurer(s) as

per the terms and conditions specified therein;

“Power Sale Agreement (PSA)” shall mean the back-to-back agreement entered into between

the Buying Entity(s) and the Intermediary Procurer/trader for onward sale of power purchased

under any power purchase agreement.

“Resource Adequacy” or “RA” means a mechanism to ensure adequate supply of generation

to serve expected demand (including peak, off peak and in all operating conditions) reliably in

compliance with specified reliability standards for serving the load with an optimum generation

mix with a focus on integration of environmentally benign technologies after taking into account

2639

PUNJAB GOVT. GAZ. (EXTRA), MARCH 15, 2024 (PHGN 25, 1945 SAKA)

the need, inter alia, for flexible resources and demand response measures for managing the

intermittency and variability of renewable energy sources.

“Short term” means one year for development of demand forecast, generation resource plan

and procurement plan.

“Short-Term Power Procurement” means procurement of power under any arrangement

or agreement with a term or duration of upto one year.

“Short-Term Distribution Resource Adequacy Plan” or “ST-DRAP” means plan for

assessment of short-term resource adequacy by the distribution licensee.

“Year” means financial year commencing on 1st April of the year and ending on 31st March of

the succeeding year.

4.2. All other words and expressions used in these Regulations, although not specifically defined herein

above, but defined in the Act or other Regulations of the Commission or CEA Guidelines, shall have

the meaning assigned to them in the Act or other Regulations of the Commission or CEA Guidelines.

The other words and expressions used herein but not specifically defined in these Regulations or in

the Act but defined under any law passed by the Parliament applicable to the electricity industry in

the State shall have the meaning assigned to them in such law.

Chapter 2

General

Resource Adequacy Framework

5.1. Resource Adequacy framework shall comprise of planning of generation resources for reliably meeting

the projected demand in compliance with specified reliability standards for serving the load with an

optimum generation mix.

5.2. Resource Adequacy framework shall cover following steps:

Demand assessment and forecasting

Generation resource planning

Procurement planning

Monitoring and compliance

5.3. The Resource Adequacy exercise shall be developed and prepared for a planning period of 10 (Ten)

years on annual rolling basis.

5.4. The Distribution Licensee shall develop and prepare Long-Term Distribution Resource Adequacy

Plan (LT-DRAP), Medium-Term Distribution Resource Adequacy Plan (MT-DRAP) and Short-

Term Distribution Resource Adequacy Plan (ST-DRAP) in accordance with these Regulations.

Chapter 3

Demand Assessment and Forecasting

Long-Term and Medium-Term Demand Forecast

6.1. The distribution licensees shall develop and prepare demand assessment and forecasting considering

the guidelines for Long-term and Medium-term power demand forecast issued by Central Electricity

Authority (CEA) from time to time.

6.2. Demand assessment and forecasting shall cover hourly or sub-hourly assessment and forecasting of

demand within the distribution area of distribution licensee for Long-term and Medium-term using

comprehensive input data, policies and scientific modelling tools.

2640

PUNJAB GOVT. GAZ. (EXTRA), MARCH 15, 2024 (PHGN 25, 1945 SAKA)

6.3. The distribution licensee shall be responsible for considering the category wise consumption data and

assessed consumption data of particular class of consumers such as agricultural, domestic etc. for

demand forecasting.The distribution licensee shall be responsible for the assessment and forecasting

of demand (MW) and energy (MWh).

6.4. The distribution licensee shall prepare the energy forecast for each consumer category as specified

by the Commission in its Tariff Order from time to time.

6.5. The distribution licensee shall determine the energy forecast for a consumer category by adopting

any of the following and/or combination of following methodologies:

Trend Analysis i.e., Year on Year /compounded annual growth rate(CAGR) for past period and

time series analysis;

End Use or Partial End Use method;

Auto-regressive integrated moving average (ARIMA);

AI including machine learning, ANN techniques; and

Econometric Modelling (specifying the parameters used, algorithm, and source of data).

6.6. The distribution licensee may use Electric Power Survey (EPS) projections as base and/or any

methodology other than the above-mentioned methodologies after providing detailed justification for

the methodology adopted for demand forecasting. The distribution licensee shall use best fit of various

methodologies for the purpose of demand forecast after taking into consideration various scenarios

such as (viz. most probable, business as usual, aggressive) of these Regulations.

6.7. For purpose of forecasting energy for a consumer category and the methodology to be used for

energy forecasting of a consumer category, the distribution licensee shall conduct statistical analysis

and select the method for which standard deviation is lowest and R-square is highest.

6.8. The distribution licensee shall utilize state-of-the-art tools, scientific and mathematical methodologies,

and comprehensive database such as, but not limited to, weather data, historical data, demographic

and econometric data, consumption profiles, impact of policies and drivers etc. as may be applicable

to distribution Licensee’s area.

6.9. The distribution licensee may modify the load/energy forecast obtained for each consumer category,

byconsidering the impact for each of the but not limited to the following activities. The impact shall be

considered by developing trajectories for each of the activities based on the economic parameters,

policies, historical data, and projections for the future:-

Demand-Side Management;

Open Access;

Distributed Energy Resources;

Deviation Settlement Mechanism and demand response measures;

Electric Vehicles and EV Charging Stations;

Tariff Signals including Time of the Day (ToD) Tariff;

Changes in specific energy consumption;

Increase in commercial activities with electrification;

For agricultural loads, the season wise change, temperature, area wise rainfall pattern, impact

of water level in agricultural pockets, irrigation facilities, area wise type of crop, number of

crops, increase in number of agricultural pump sets and its solarization;

2641

PUNJAB GOVT. GAZ. (EXTRA), MARCH 15, 2024 (PHGN 25, 1945 SAKA)

Changes in consumption pattern of seasonal consumers including seasonal variations for rabi/

kharif season and other crops;

Impact of important festivals, working days or non-working days, Peak and Off-Peak hours

load pattern; and

Policy influences such as 24X7 supply to all consumers, LED penetration, efficient use of

agriculture pumps, fans/ACs/ appliances, increased use of appliances for cooking/heating/cooling

applications, electrification policies, distributive energy resources, storage, and policies, which

can impact econometric parameters, impact of national hydrogen mission. For each policy, a

separate trajectory should be developed for each consumer category.

6.10. The distribution licensee may take into consideration any other factor not mentioned in Regulation

6.09 of these Regulations after providing detailed justification for its consideration.

6.11. The long and medium-term load profiles of the consumer categories for which load research has

been conducted may be refined on the basis of load research analysis. A detailed explanation for

refinement conducted must be provided.

6.12. The summation of energy forecast (MWh) for various consumer categories after adjusting captive,

prosumer, and Open Access load forecast as per Regulations 6.5 to 6.11 of these Regulations, as the

case may be, shall be the energy forecast for the distribution licensee at consumer level.

6.13. The distribution licensee shall calculate the energy forecasts (in MWh) of the State by adding

Distribution Losses as per loss trajectory approved by the Commission, Intra-State Transmission

Losses and Inter-State Transmission Losses.

6.14. The peak demand (in MW) shall be determined by considering the average load factor, load diversity

factor, seasonal variation factors for the last three years and the energy forecasts (in MWh) obtained

in Regulations 6.13 of these Regulations. If any other appropriate load factor is considered for future

years, a detailed justification shall be provided by the distribution licensee for its consideration.

6.15. The distribution licensee shall conduct sensitivity and probability analysis to determine the most

probable demand forecast. It shall also develop long- term and medium term demand forecasts for

possible scenarios, while ensuring that at least three different scenarios (most probable, business as

usual, and aggressive scenarios) are developed.

Short-Term Demand Forecast and Aggregation of Demand Forecast

Short-Term Demand Forecast

7.1. The distribution licensee shall develop a methodology for hourly or sub-hourly demand forecasting

and shall maintain a historical database.

7.2. For the purpose of ascertaining hourly load profile and for assessment of contribution of various

consumer categories to peak demand, load research analysis shall be conducted and influence of

demand response, load shift measures, time of use shall be factored in by the distribution licensee

with inputs from State Load Dispatch Center (SLDC). A detailed explanation for methodology adopted

must be provided.

7.3. The maintenance schedule of own generating units, Bhakra Beas Management Board (BBMB),

Central and other Power Plants etc. shall also be kept in view.

7.4. The distribution licensee shall utilize state-of-the-art tools, scientific& mathematical methodologies,

and comprehensive data such as but not limited to weatherdata, historical data, demographic and

econometric data, consumption profiles, policies and drivers etc. as may be applicable to their distribution

area.

2642

PUNJAB GOVT. GAZ. (EXTRA), MARCH 15, 2024 (PHGN 25, 1945 SAKA)

Aggregation of Demand Forecast

7.5. The distribution licensee shall prepare hourly or sub-hourly 1-year Short-term (ST), 5-year Medium-term

(MT) and 10-year Long-term (LT) demand forecasts on a rolling basis and submit to SLDC by 30th April

of each year for the ensuing year (s).

7.6. STU with inputs from SLDC and based on the demand estimates of the distribution licensees of the State,

shall estimate, in different time horizons, namely long-term, medium term and short term, the demand for

the entire State duly considering the diversity of the State.

7.7. SLDC shall aggregate demand forecasts by distribution licensees, consider the load diversity, congruency,

seasonal variation aspects and shall submit state-level aggregate demand forecasts (MW and MWh) to

the Authority and NLDC and RLDC by 31stMay of each year for the ensuring year(s).

Chapter 4

Generation Resource Planning

Preparation of Generation Resource Planning

8.1. The distribution licensee shall plan and asses the required generation resources considering their

existing resources, upcoming resources (not yet commissioned), capacity credit and incremental

capacity requirement to meet forecasted demand including planning reserve margin (PRM).

8.2. Generation resource planning shall involve the following steps namely,

Capacity crediting of generation resources,

Assessment of planning reserve margin, and

Ascertaining resource adequacy requirement and allocation to distribution licensees.

8.3. The distribution licensee shall map all its existing resources, upcoming resources, and retiring resources

to develop the existing resource map in MW for the Long-term and Medium-term power procurement

plan. The Distribution Licensee shall also be guided by the methodology adopted in the latest electricity

power survey of CEA for the State.

8.4

The Generation resource planning shall include the following, but not limited to: -

Planning Reserve Margin

Actual demand met by the State / distribution licensee in hourly time block resolutions for last 5

years.

Estimated load growth during the planning period

Banking Power arrangements

Critical characteristics, machine characteristics, hydrology for hydro machines and technical

parameters of thermal and hydro generation plants, such as:

Name of plant, location (State/Region)

ii.

Capacity (MW) (for existing and planned capacities)

iii.

Heat Rate for thermal generating stations,

iv.

Auxiliary Consumption (MW),

Maximum and Minimum Generation Limits (MW)

vi.

Ramp Up and Ramp Down Rate (MW/min)

vii.

Minimum up and down time

2643

PUNJAB GOVT. GAZ. (EXTRA), MARCH 15, 2024 (PHGN 25, 1945 SAKA)

viii.

Plant Availability Factor (% of time), etc. and

ix.

Capacity utilization factor (CUF) for renewable resource-based power plants.

Maintenance/renovation schedule of own generating units, Bhakra Beas Management Board

(BBMB), Central and other Power Plants etc.

All the characteristics and parameters with their values for each generating plants considered

shall be provided in the resource plan.

Under-construction capacity /retirement of generation capacity/contracted capacity/bilateral

contracts.

Potential technologies, gestation periods and lifetime of different assets.

Capacities and generation profile of renewable generation

Timeline details and transmission expansion plans

Renewable Purchase Obligation (RPO)

Constraints such as forced outages, and system emission limits as defined in State and Central

electricity grid codes and emission norms specified by the Ministry of Environment, Forest and

Climate Changes shall be identified and enlisted.

Capacity Crediting of Generation Resources

9.1. The distribution licensee shall compute Capacity Credit (CC) for their contracted generation resources

by applying the net load-based approach as outlined under Regulation 9.2 of these Regulation. The

average of the Capacity Credit (CC) factor for each type of the contracted generation resource for

the preceding five years on a rolling basis shall be considered as Capacity Credit factor for the

purpose of generation resource planning.

9.2. The Net Load based approach/methodology for determination of Capacity Credit (CC) factors for

generation resources shall be adopted as under:

For each year, the hourly recorded Gross Load for 8760 hours (or timeblock) shall be arranged

in descending order.

For each hour, the Net Load is calculated by subtracting the actual wind or solar generation

corresponding to that load for 8760 hours (or timeblock) and then arranged in descending order.

The difference between these two load duration curves mentioned under Regulation 9.2 (a)

and (b) of these Regulations represents the contribution of capacity factor of wind generation

or solar generation, as the case may be.

Installed capacity of wind or solar generation capacity shall be summed up corresponding to the

top 250 load hours as computed in Regulation 9.2(c) of these Regulations. The selection for 250

top load hours shall be considered from the arranged descending order of Net Load hours.

Total generation from wind or solar generation corresponding to these top 250 hours is summed up.

Resultant CC factor is (Total Generation for top load 250 hours)/(Installed RE Capacity for top

load 250 hours), as per formula below:

Sum of RE Generation for top load 250 hours (MWh)

CC factor = ______________________________________________________

Sum of RE Capacity for top 250 hours (MWh)

The process for CC factor determination shall be undertaken for each year for duration of past

five-years and the resultant CC is the average of CC values of past 5 years.

2644

PUNJAB GOVT. GAZ. (EXTRA), MARCH 15, 2024 (PHGN 25, 1945 SAKA)

9.3. For the purpose of Inter-State or Intra-State RE contracted generation, contribution of CC factor for

the RE or generation resource where such resource is located into grid (viz. inter-State or intra-

State, as the case may be) as contracted by the distribution licensees shall be considered. For this

purpose, CC factors as prescribed by Authority or as approved by the Commission shall be considered.

9.4. CC factors for hydro generation resources shall be computed based on water availability with different

CC factors for run-of-the-river hydro power projects and dam-based/storage-based hydro power

projects.

9.5. CC factor for thermal resources shall be computed based on coal availability and planned/forced

outages.

9.6. The distribution licensee shall calculate State-specific CC factors based on aggregate State Demand,

State Net Load and contracted RE generation available in the State and submit such CC factor

information to SLDC by 21st May of each year for the ensuing year(s).

9.7

SLDC shall calculate state-specific CC factors considering the aggregate State Demand and State

Net Load and contracted RE generation resources available in the State and shall submit such CC

factor information to the Authority and NLDC and RLDC from time to time.

10.

Assessment of Planning Reserve Margin (PRM)

10.1. Planning Reserve Margin (PRM) is a percentage of the capacity over and above the State coincident

share in national peak demand required to be considered for the purpose of generation resource

planning.

10.2. Such Planning Reserve Margin (PRM) shall be based on the reliability indices in terms of Loss of

Load Probability (LOLP) and Normalized Energy Not Served (NENS) as may be prescribed by the

Authority.

10.3. The PRM determined shall be considered by the distribution licensee in their planning for resource

adequacy requirement and generation resource capacity planning.

10.4. The State level resource adequacy planning by the distribution licensee/SLDC shall factor in PRM

while developing State-level Integrated Resource Plan.

11.

Resource Adequacy Requirement and its Allocation

11.1. The distribution licensee shall determine capacity requirement to meet demand and PRM considering

available capacity adjusted for capacity crediting for existing and planned contracted generation

resources.

11.2. The available capacity as determined in Regulation 11.1 shall be then plotted over a time axis of

15-minute intervals or longer, but not more than one hour. This shall form the resource map of the

distribution licensees.

11.3. The distribution licensee shall subtract the resource map developed in Regulation 11.2 from the

demand forecast developed in Regulation 6 of these Regulations to identify the resource gap.

11.4. The distribution licensee shall conduct sensitivity and probability analysis to determinethe most probable

resource gap. It shall also develop Long-term, Medium-term, and Short-term resource gap plans for

possible scenarios, while ensuring that at least three different scenarios (most probable, business as

usual, and aggressive) are developed.

11.5. Based on most probable scenario, the distribution licensee shall undertake development of Long-

term, Medium-term, and Short-term Distribution Resource Adequacy Plan of each year to meet

Resource Adequacy requirement.

2645

PUNJAB GOVT. GAZ. (EXTRA), MARCH 15, 2024 (PHGN 25, 1945 SAKA)

11.6. Long-term National Resource Adequacy Plan (LT-NRAP) and Short-term National Resource

Adequacy Plan (ST-NRAP) reports shall act as guidance for the distribution licensee for undertaking

the Resource Adequacy exercises.

11.7. The Central Electricity Authority will publish the Long-term National Resource Adequacy Plan

(LT-NRAP) to determine the optimal Planning Reserve Margin (PRM) requirement at the national

level for ensuring reliable supply targets. The report will also include the optimal generation mix for

the next 10 years thereby ensuring compliance with Resource Adequacy Requirements while meeting

national demand at least cost basis. Further, the report will feature capacity credits for different

resource types on a regional basis and prescribe the State contribution towards the national peak

demand.

11.8. NLDC will publish a one-year look-ahead Short-term National Resource Adequacy Plan (ST-NRAP)

report which will include parameters such as demand forecasts, resource availability based on under-

construction status of new projects, planned maintenance schedules of existing stations, station-wise

historic forced outage rates and decommissioning plans.

11.9. The distribution licensee based on the share in national peak provided in LT-NRAP shall plan to

contract the capacities over and above the State coincident demand in national peak prescribed by

LT-NRAP or procure higher to meet their Resource Adequacy Requirement (RAR) at the time of

national peak.

11.10. The distribution licensee is suggested to keep the share of Long-term contracts in the range of

75-80% of the RAR and Medium–term contracts in the range of 10% - 20% of the RAR while the

rest to be met through Short-term contracts.

Provided that power procurement through Day-Ahead Market (DAM), shall not be considered

towards the contribution for meeting RAR.

11.11. The distribution licensee shall undertake a 10-year period (Long-term Distribution Resource Adequacy

Plan (LT-DRAP)) to meet their own peak demand and energy requirement.

11.12. The distribution licensee while formulating their LT DRAP shall also consider the constraints mentioned

in Annexure–I of these Regulations.

11.13. The distribution licensee may take inputs from the LT-NRAP like PRM, capacity credits, etc., while

formulating their LT-DRAP and shall submit their plans to CEA by 30th September of each year for

the ensuing year(s) for validation.

11.14.The distribution licensee shall submit the LT-DRAP plan duly vetted by CEA along with necessary

supporting documentsand details for meeting RAR to the Commission for approval within 15 days

from the date of receipt of CEA approval.

11.15.The distribution licensee shall also demonstrate to the Commission 100% tie-up for the first year and

a minimum 90% tie-up for the second year to meet the requirement of their contribution towards

meeting national peak. Only resources with long / medium / short-term contracts shall be considered

to contribute to the RAR.

11.16. For subsequent three years, the distribution licensee shall also furnish a plan to meet estimated

requirement of their contribution to meet national peak for the Commission’s approval.

11.17. The LT-DRAP shall be carried out by the distribution licensee on an annual rolling basis considering

the contracted capacity as a part of the system and shall optimize for additional capacity required.

11.18. The distribution licensee through LT-DRAP, shall demonstrate to the Commission their plan to meet

their Peak demand and energy requirement with a mix of Long-term, Medium-term, and Short-term

2646

PUNJAB GOVT. GAZ. (EXTRA), MARCH 15, 2024 (PHGN 25, 1945 SAKA)

contracts, including power exchanges.

11.19. The share of long-term contracts in the entire mix of the contracts of the distribution licensees shall

be atleast the maximum of the quantum of long-term contracts determined for meeting RAR of

national peak and quantum obtained from LT-DRAP for fulfilling own energy and peak requirement.

11.20. SLDC shall prepare one-year look ahead ST-DRAP (Short term Distribution Resource Adequacy

Plan), on an annual basis for operational planning, at theState level based on the LT-DRAP study

results and submit to the Commission. The SLDC shall review the STDRAP on a daily, monthly and

quarterly basis based on actual availability of generation resources.

Chapter 5

Procurement Planning

12.

Procurement planning shall consist of:

(a)

Optimal power procurement resource mix,

(b)

Modalities of procurement type and tenure, and

(c)

Sharing of Capacity

13.

Procurement Resource Mix

13.1. In power procurement strategy, the distribution licensee shall ensure an optimal procurement generation

resource mix and also facilitates smooth RE integration in its portfolio of power procurement resource

options while meeting reliability standards and Renewable Purchase Obligation. Further, the future

capacity mix may comprise of existing capacities, planned capacities and capacity addition required

to meet the increasing demand of the utility considering appropriate gestation period of the generation

resource.

13.2. For identification of the optimal generation procurement resource mix, optimization techniques and

least-cost modelling shall be employed by the distribution licensee in order to avoid stranded of

capacity. The distribution licensee shall also engage in adoption of least cost modelling and optimization

techniques and demonstrate the same in its overall power procurement planning exercise to be

submitted to Commission for approval.

13.3. The distribution licensee shall consider Long / Medium / Short-term contracts of generation resources

towards the contribution for meeting RAR.

Provided that Power procurement through Day-Ahead Market, shall not be considered towards the

contribution for meeting RAR.

13.4. The distribution licensee shall contract additional resources source-wise based on the LTDRAP to

meet its own peak demand.

13.5. The power capacity procurement from renewable energy sources for fulfilling the RPO targets shall

be carried out as per Punjab State Electricity Regulatory Commission (Renewable Purchase Obligation

and its compliance), Regulationsand amendments thereof.

13.6. The power procurement from Wind, Solar PV, Wind Solar Hybrid, Round the Clock (RTC) generations

shall be carried out as per the guidelines for tariff based competitive bidding process notified by the

Ministry of Power.

13.7. The distribution licensee may contract power through Central Agencies / Intermediaries / Traders /

Aggregators / Power Exchanges or through bilateral agreements / Banking arrangements with other

distribution licensees.

2647

PUNJAB GOVT. GAZ. (EXTRA), MARCH 15, 2024 (PHGN 25, 1945 SAKA)

13.8. The distribution licensee may procure power on Short-term and Medium-term basis through DEEP

and PUShP portal.

14.

Procurement Type and Tenure

14.1. The distribution licensee, while determining the modalities and tenure of procurement of resources,

shall ensure that procurement contract shall be decided first within the region subject to the least cost

resource availability considering transmission constraints and cost of transmission for procurement

from outside the region and then across regions if necessary.

14.2. The distribution licensee shall identify the generation resource mix and also procurement strategy in

Long-term, Medium-term and Short-term period and seek approval of the Commission.

14.3. The distribution licensee in its overall power procurement planning approach shall employ greater

emphasis on adequate contracting through Long-Term and MediumTerm arrangements. However,

the distribution licensee shall ensure that entering into new Long-Term and Medium-Term contracts

does not contribute towards accumulation of stranded capacity and additional burden to the consumers

on account of fixed cost associated with stranded capacity.

14.4. The distribution licensee through annual rolling plan shall ensure incremental capacity addition through

Long-term/Medium-term/Short-term upon factoring in existing and planned procurement initiatives

of the distribution licensees.

15.

Sharing of Capacity

15.1.The distribution licensee shall duly factor in the possibility of Long-term / Medium-term/ Short-term

capacity sharing while preparing the Resource Adequacy plan and optimally utilize the platform for

Inter-State capacity sharing or trading mechanism created by the Central Commission/Central

Government and optimize the capacity costs as far as possible.

15.2. The distribution licensee shall submit information about contracted capacity to the SLDC and the

STU for compliance verification.

15.3. The distribution licensee, the STU and the SLDC shall seek approval of the Commission to the

procurement plan as well as Annual Rolling Plans.

16.

Approval of Power Purchase Agreement

16.1. Any new Capacity arrangement/tie-up shall be subject to the prior approval of the Commission in

view of necessity, reasonableness of cost of power purchase and promotion of working in an efficient,

economical and equitable manner.

16.2. All procurement of Long/Medium/Short-term power from various sources shall be carried out as per

the Guidelines/Rules/Regulations/Policies issued by the Commission/Central Government from time

to time.

16.3. Any new power purchase agreement for Long/Medium-term or amendments to existing Long/

Medium-term Power Purchase Agreement (PPA’s)/ Power Sale Agreement (PSA) entered into by

the distribution licensee shall be subject to the prior approval of the Commission in respect of

Necessity;

(ii)

Reasonability of cost;

(iii)

Promoting efficiency, economy, equitability and competition;

(iv)

Conformity with requirements of quality, continuity and reliability of supply;

(v)

Conformity with safety and environmental standards;

2648

PUNJAB GOVT. GAZ. (EXTRA), MARCH 15, 2024 (PHGN 25, 1945 SAKA)

(vi)

Conformity with criterion of power purchase as laid down by the Commission;

(vii) Conformity with policy directives of the State Government and policies issued by the Government

of India viz. National Electricity Policy, Tariff Policy, long term and short term power procurement

guidelines etc.

16.4. The distribution licensee shall submit the list of all existing Power Purchase Agreements executed

with different conventional power plants as well as RE Generators along with the Resource Adequacy

plan.

17.

Variation in Power Purchase

17.1. The distribution licensee shall undertake additional power procurement during the year, over and

above the approved resource adequacy procurement plan on account of following exemptions: -

(a)

In case, where there has been an unanticipated increase in the demand for electricity or a

shortfall or failure in the supply of electricity from any approved source of supply during the

year or when the sourcing of power from existing tied-up sources becomes costlier than other

available alternative sources, the distribution licensee may enter into additional agreement for

procurement of power as per Regulation 16.

(b)

The distribution licensee may enter into a Short-term arrangement or agreement for procurement

of power when faced with emergency conditions that threaten the stability of the grid, or when

directed to do so by the SLDC/RLDC to prevent grid failure or during exigency conditions and

for banking with other States on Short-term basis without prior approval of the Commission.

Provided that the details of such Short-term procurement shall be submitted to the Commission

within 45 days from date of procurement of power.

Chapter 6

Monitoring and Compliance

18.

Monitoring and Compliance

18.1. The distribution licensee/Distribution licensees shall comply with the Resource Adequacy requirement,

and its compliance and in accordance with the timelines specified under Regulations 20 of these

Regulation. In case of non-compliance, appropriate non-compliance charges as may be determined

by the Commission, shall be applicable on account of shortfall for Resource Adequacy compliance.

Chapter 7

Roles and Responsibilities and Timelines

19.

Data Requirement and Sharing Protocol

19.1. The Distribution licensee shall maintain and share all data related to demand assessment and forecasting

such as consumer data, historical demand data, weather data, demographic and econometric variables,

T&D losses, actual electrical energy requirement and availability including curtailment, peak electricity

demand, and peak met along with changes in demand profile (e.g.: agricultural shift, time of use,

etc.), historical hourly load shape, etc. with SLDC.

19.2. The Distribution Licensee shall maintain all statistics and database pertaining to policies and drivers,

such as LED penetration, efficient fan/ ACs penetration, appliance penetration, increased usage

of electrical appliances for cooking, heating , cooling etc., in households, increase in commercial

activities for geographic areas/regions, increase in number of agricultural pumps and solarization

within distribution licensees area, changes in specific energy consumption, consumption pattern

from seasonal consumers, Demand Side Management (DSM) and Distributed Energy Resources

2649

PUNJAB GOVT. GAZ. (EXTRA), MARCH 15, 2024 (PHGN 25, 1945 SAKA)

(DERs), Electric Vehicles (EVs) and Open Access (OA), National Hydrogen Mission, reduction

of AT&C losses, etc.

19.3. The Distribution Licensee shall maintain at least past 10 years of statistics in its database pertaining

to consumption profiles for each class of consumers, such as domestic, commercial, industry, public

lighting, bulk supply etc., contribution of consumer category to peak demand, seasonal variation

aspects etc.

19.4. The distribution licensee/SLDC shall maintain the aggregate for State as whole, the statistics and

database pertaining to aggregate demand assessment and forecasting datamentioned above and

share State-level assessment with the Authority/NLDC and RLDC for regional/national assessment

from time to time.

19.5. The distribution licensee shall share information and data pertaining to the existing and contracted

capacities with their technical and financial characteristics including hourly generation profiles to

SLDC for computation of State-level capacitycredit factors and for preparation of State-level

assessment.

19.6. SLDC and the distribution licensee shall aggregate generation data and share State-level projections

with the Authority and NLDC for assessment of Resource Adequacy requirement.

20.

Timelines

20.1. CEA will publish the LT-NRAP report in July of each year for the ensuing year(s) and NLDC will

publish the ST-NRAP report by 31st July of each year for the ensuing year(s).

20.2. The distribution licensee shall submit the LT-DRAP plans to CEA by 30th September of each year

for the ensuing year(s) for validation.

20.3. The distribution licensee shall submit the LT-DRAP plan duly vetted by CEA along with details for

meeting the RAR to the Commission within 15 days from the date of receipt of CEA approval.

20.4. The distribution licensee shall submit the details of the contracted capacities for the ensuing year for

meeting RAR to SLDC within 30 days from the date of approval from the Commission.

20.5. SLDCs shall aggregate the total contracted capacities at the State level and submit the information to

the RLDC under the intimation to the Commission within 15 days from the date of receipt from the

distribution licensee.

20.6. The distribution licensee after contracting the balance capacity shall submit the information to the

Commission by 1st April of each year for the current year(s).

Chapter 8

Miscellaneous

21.

Placing of information on websites

21.1. SLDC shall also publish the monthly Merit Order Dispatch (MoD) stack along with per unit variable

cost of each generating station on its website.

22.

Assessment to involve consultation

The distribution licenseemay consult with Central Sector Generating Companies, Transmission

Companies, National / Regional /State Load Dispatch Centers, and Central Electricity Authority to

make the Resource Adequacy Plan. It may also make enquiries with the Trading Companies and

States with surplus power to estimate the likely availability and price of power across the country for

peak, off-peak and normal periods.

2650

PUNJAB GOVT. GAZ. (EXTRA), MARCH 15, 2024 (PHGN 25, 1945 SAKA)

23.

Power to Issue Orders and Give Practice Directions

Subject to the provisions of the Electricity Act, 2003 and these Regulations, the Commission may

from time to time issue such orders and practice directions as considered appropriate for the

implementation of these Regulations and procedure to be followed.

24.

Power to Relax

The Commission may by general or special order, for reasons to be recorded in writing may relax any

of the provisions of these Regulations on its own motion or on an application made before it by an

interested person.

25.

Power to Remove Difficulties

If any difficulty arises in giving effect to any of the provisions of these Regulations, the Commission

may, by an order, make such provisions, not inconsistent to the provisions of the Act and these

Regulations, as may appear to be necessary for removing the difficulty/difficulties.

26.

Power to amend

The Commission may from time to time add, vary, alter, modify or amend any provisions of these

Regulations after following the necessary procedures.

27.

Repeal and Savings

27.1. Nothing contained in these Regulations shall limit or otherwise affect the inherent powers of the

Commission from adopting a procedure, which is at variance with any of the provisions of these

Regulations, if the Commission, in view of the special circumstances of the matter or class of matters

and for reasons to be recorded in writing, deems it necessary or expedient to depart from the procedure

specified in these Regulations.

27.2. The Punjab State Electricity Regulatory Commission (Power Purchase and Procurement Process of

Licensee) Regulations, 2012 shall stand repealed from the date of commencement of these Regulations.

Notwithstanding such repeal, anything done or purported to have been done under the repealed

Regulations shall deemed to have been done or purported to have been done under these Regulations.

Sd/-

Secretary to the Commission

2651

PUNJAB GOVT. GAZ. (EXTRA), MARCH 15, 2024 (PHGN 25, 1945 SAKA)

ANNEXURE -I

Methodology of Preparation of Resource Adequacy Plan with constraints

After establishment of demand profile for all future years, the model would undertake an optimization

exercise to minimize the total system cost to meet the future demand adhering to all power system parameters.

Following constraints should be considered while modelling by the distribution licensee:



Planning Reserve Margin/Resource Adequacy Requirement:

The capacity credits for generating resources and demand response resources to meet the national peak

shall be estimated by CEA. The capacity credits published by CEA for each resource type may differ

between existing and new resources and between resources in different regions. For example, a solar

based power plant in the Southern Region will have a capacity credit which could be different compared

to a solar plant in the Northern Region. Similarly, an upcoming wind-based power plant could have a

different capacity credit compared to an already commissioned wind plant in the same region. The distribution

licensee shall use these capacity credits while planning to meet their RAR. For example, a distribution

licensee having a PPA with an existing solar based power plant located in a southern State would use the

capacity credit of existing solar based power plants in the Southern Region.



Portfolio balance constraints: The portfolio balance constraints shall ensure that the total generation

and the import of power to the control area of Distribution licensee is equal to the sum of the demand,

exports from the control area of Distribution licensees, any energy not served and curtailment, for each

hour.



RE Generation constraints: For renewable resources, such as solar and wind, the RE generation

constraints shall be constrained as per the hourly profile of the resource. Historic profiles of renewable

sources shall be used to generate the hourly profiles. Additional constraints shall ensure that the distribution

licensees overall renewable generation targets are met and included while formulating LT-DRAP.



Conventional Generation constraints:

(a)

Unlike solar and wind, thermal resources are dispatchable. However, the thermal resources

are bound by constraints such maximum and minimum generation limits, ramp rates, spinning

reserve offers, plant availability and unit commitment decisions.

(b)

The dispatch (energy offer) plus the reserve offer (specified through regulations) for each

generator is constrained to be within the maximum and minimum generation limits. Generation

between two consecutive time blocks also must be within the ramping capabilities of the resources.

Unit commitment decisions, such as start-up/shut-down, minimum up and down times, etc.,

require binary variables to implement and are to be included. Additionally, generation units may

have periods of outages which may need to be captured by using an availability factor.

(c)

The capacity for each year needs to be tracked by a constraint which shall ensure that the

capacity in a particular year is equal to the capacity last year plus any new capacity investment

minus capacity retirement, if any.



RPO constraints: Fulfilment of Renewable purchase obligation shall be considered as one of the objectives

of Resource Adequacy. Technology options like renewable generation for round the clock energy supply

backed with storage (Battery and PSP), standalone renewable capacity along with hydro capacity for

balancing renewable generation shall be considered while carrying out resource adequacy exercise.



Storage constraints: Due to the intermittent nature of renewable generation, the need for resources

which can store surplus energy and despatch the stored energy during low RE periods becomes vital.

Storage charge and discharge at any instant are constrained by the storage level or the state of charge

2652

PUNJAB GOVT. GAZ. (EXTRA), MARCH 15, 2024 (PHGN 25, 1945 SAKA)

(SoC) of the storage resource, and the maximum charge / discharge limit. The resource shall only discharge

if there is sufficient energy present due to prior charging of the resource. To implement this, considering

the chronological sequence of time is also important. Since storage resources convert electricity to other

forms of energy, there are also some efficiency losses (round-trip efficiency) which shall be accounted

for. Different technologies may have different discharge periods (energy limits), power outputs (maximum

charge / discharge) and levels of efficiency.



Operating (Spinning) Reserve constraints: Operating reserve constraints shall ensure that sufficient

resources are in the system and kept online or on standby each hour to account for load forecast errors,

intermittency of renewables or meeting contingencies in the real time. The thumb rule for operating reserve

requirement shall be defined based on discussions with the SLDC and shall be considered as an input

parameter to the model.



Demand Response: Potential for demand side management such as shifting of load or demand response

can be considered while undertaking the Resource Adequacy Plan (RAP). The constraints such as periods

when load shifting can occur, and the maximum quantum of load which can be shifted over a period shall

be included.

3067/3-2024/Pb. Govt. Press, S.A.S. Nagar