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Effect of linking of deviation settlement mechanism for over-drawl and under-drawl of power with market clearing price

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Abstract

The ABT system holds power producers accountable for stabilizing the grid, preventing over-drawl and under-drawl of power. Before the introduction of ABT, frequent over-drawl and under-drawl beyond the limits caused grid disturbances. It results in fewer generators getting tripped due to the wide variation range in the grid frequency and leads to power shortages for large-scale consumers. CERC in India introduced DSM to penalize over-drawing and under-drawing in power buying/selling schedules. Staying within limits earns incentives tied to grid frequency also preventing producers from charging higher rates for exploiting the lower frequency range. This paper delves into the seamless integration of ABT with India’s regional and national grids. Furthermore, we meticulously scrutinize the power situation in India by examining the interconnection between MCP, DSM, and frequency. The DSM data were diligently collected from the Indian state of Madhya Pradesh for testing. The result shows that MCP linked with the DSM vector provides information on the deviation limit for DAM, power producers, and consumers. Linking of MCP with DSM and frequency makes power utilities more responsible and accountable for a power system.

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Abbreviations

ABT:

Availability-based tariff

CERC:

Central Electricity Regulatory Commission

DSM:

Deviation settlement mechanism

MP:

Madhya Pradesh

MCP:

Market clearing price

MO:

Market operators

ACP:

Area clearing price

UI:

Unscheduled interchange

DAM:

Day-ahead market

DALRS:

Distributed adjustable load resources and settlement

RES:

Renewable energy source

MCD:

Market clearing design

DA:

Day-ahead

MCV:

Market clearing volume

DLMP:

Distribution locational marginal price

DR:

Demand response

RTM:

Real-time market

NN:

Neural network

DSC:

Deviation settlement charge

AT:

Availability tariff

ACEC:

Area control error code

IEX:

Indian Energy Exchange

WRPC:

Western Regional Power Committee

X:

Capacity charges/fixed charges

Y:

Energy charges/variable charges

Z:

Unscheduled interchange energy charges

P:

Daily average area clearing price (Paise/KWH)

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Acknowledgements

The authors thank the Madhya Pradesh Power Management Company Limited, Jabalpur, for providing us the data for study purposes.

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Authors and Affiliations

  1. Department of Electrical Engineering, Gyan Ganga Institute of Technology and Sciences, Jabalpur, MP, India

    Rajeev Kumar Chauhan

  2. Department of Electrical Engineering, GLA University, Mathura, UP, India

    Sanjay Kumar Maurya & Durg Singh Chauhan

  3. Power Management, Madhya Pradesh Power Management Company Limited, Jabalpur, India

    Nilesh Kumar

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Contributions

RKC proposed the research topic, designed the proposed system, performed the simulations, computed and analyzed the results, and prepared the paper. SKM, NK, and DSC identified the issues related to the problem statement, discussed, analyzed, and verified the results obtained, and revised the manuscript. All the authors contributed to the writing of the manuscript and have read and approved the final manuscript.

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Correspondence to Rajeev Kumar Chauhan.

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Chauhan, R.K., Maurya, S.K., Kumar, N. et al. Effect of linking of deviation settlement mechanism for over-drawl and under-drawl of power with market clearing price. Electr Eng 106, 1907–1923 (2024). https://doi.org/10.1007/s00202-023-02031-x

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