CSTPS

DEVIATION SETTLEMENT
MECHANISM
Ritesh Mokhade Dy.EE (POG)
Amit Kumar Saxena AE (POG)
 2

What is DSM & Why DSM ?? CSTPS

• Deviation Settlement Mechanism (DSM) is a regulatory mechanism by

which grid stability is to be achieved by imposing penalty and
incentives for over drawl/injection or under drawl/injection from the
schedule. DSM is a frequency linked mechanism.
• To introduce Grid Discipline amongst the Grid users
• To bring responsibility and accountability in power generation and
consumption sectors through incentives and dis-incentives.
• To encourage generators to produce more during peak load hours
(or low frequency period)
• To curtail generation during off-peak hours (or High frequency
period)
• Discourage utilities from overdrawing during low frequency period.
• Encourage utilities to overdraw during high frequency period
Principles of Day Ahead Scheduling CSTPS

•The Sellers shall forecast the availability in MW and MWh

foreseen for the next day ; i.e. from 00.00 hrs to 2400 hrs. on
15-minute time block basis.
•By 09:00 hrs everyday, the generator, shall furnish to
MSLDC, its unit-wise generation availability in MW and
MWh taking into consideration any outage of its
generating unit for the next day , i.e., from 00:00 hrs to
2400 hrs of the following day on 15 minute time block.
Revision in Day Ahead DC can be revised upto 20:00 Hrs.
•By 2300 hrs, MSLDC shall release final dispatch
schedules on 15 minute time block basis to all Sellers.
•Seller, as far as possible, shall generate electricity as per
the day-ahead generation schedule finalized by MSLDC.
 Principles of Scheduling CSTPS

•The revised declared capability and the revised schedules

shall become effective from the fourth time block, counting
the time block in which the revision is advised by the Intra-
State Generator to be the first one.

•MSLDC shall permit the revision of generation schedule

by Sellers for the remaining period of the day/block with
advance notice of 4 time blocks

•Revised generation schedules in such cases shall

become effective from the 4th time block, counting the
time block in which the request for revision has been
received by MSLDC to be the first one.
 MERC DSM ORDER HIGHLIGHTS
CSTPS

MERC Suo-moto order dated 07.10.2021 for commercial

implementation of DSM in Maharashtra Grid w.e.f 11.10.2021 00.00
hrs.

1. There will be stabilization period of 6 months i.e. up to

10.04.2022 for the implementation of DSM.
During this period the volume limit for generators will be at
relaxed levels of 50 MW-60 MW-70 MW (instead of 30 MW-40 MW-50
MW as provided under the MERC DSM Regulations.)

2. For the first four months, the Additional DSM charges will be
computed for Generators but the same will not be collected from
generators , unless required for payment of State DSM charges to
WRPC.

3. Regarding additional volume limit on the basis of capacity of

units, Hon'ble Commission will take a decision on the basis of the
performance during the stabilization period.
 MERC DSM ORDER HIGHLIGHTS
CSTPS

4. The practice of telephonic communication from SLDC for

operation of Hydro units on the basis of real-time situations will
be continued as of now.

5. Rest of the stations (i.e. thermal stations) will have to follow

the schedules as per DSM Scheduling software.
MERC DSM Regulation 2019 for Intra-State ABT C S T P S
Deviation = Actual Injection - Scheduled Generation
IEGC frequency Band 49.85 – 50.05 Hz.
The deviation charges are to be paid for
1. Deviation of actual energy w.r.t.to scheduled energy.
2. Additional charge for Volume deviation beyond 12% of schedule.
3. Additional Charge for violation of sign change stipulation.

Volume limit of generator is 30 MW or 12 % of Schedule.

Additional charges at rate of 20%, 40%, 100% of applicable Deviation
Charges in steps of deviation 12%-15%, 15%-20%, > 20% or 30-40 MW,
40-50 MW, > 50 MW.
• Additional condition for a change in sign of the deviation shall be
met once every 6-time blocks by Buyer/Seller, failing which,
additional charges @20% of the Deviation Charges on daily base
DSM payable/ receivable as the case may be shall be levied for the
duration of continuance of violation
 CSTPS

*** Volume Limit in respect of CSTPS Chandrapur

Sr. Stage Volume Limit (MW)
No.
Stage II & III 12% of the Schedule
(Unit 3 to Unit 7) Generation (S.G.) or
1
( 210 MW x 2 + 500 MW x 3) 30 MW whichever is
(1920 MW) Minimum

Stage IV 12% of the Schedule

(Unit 8 & Unit 9) Generation (S.G.) or
2
(500 MW x 2) 30 MW whichever is
(1000 MW) Minimum
**** OVERINJECTION LIMIT IS UPTO 30 MW ONLY and OVERINJECTION
ABOVE 30 MW WILL RECEIVE ZERO BENEFITS.
HENCE DEVIATION NEEDS TO BE STRICTLY MAINTAINED BETWEEN 30
MW ONLY AT ANY COST (in case of OVERINJECTION)
 Deviation charges
considering P = 309.98 Paisa
Methodology for computing deviation
per kWh CSTPS
price

https://dsm.nldc.in/
Tabular representation of Deviation and Additional Deviation Charges for
Seller as per MERC DSM Regulations
CSTPS

-- For Additional DSM Rates in Table I of Annexure –II of MERC DSM Regulations (reproduced as
Annexure –II with this Procedure) shall be referred.
-- For Additional DSM Rates for under-injection by Gen. stations using Coal or Lignite or Gas supplied
under APM Table II of Annexure –II of MERC DSM Regulations
 Energy Billing Procedure CSTPS

 Current Method : As per Energy Meter Readings taken from

GCR
 Net Sent out = Gross Generation – UAT Consumption –
Station Consumption
 Billing = ECR x Net Sent Out

 As per DSM Regulations

 Billing will be based on the Scheduled Generation given
by the SLDC and not on Actual Net generation
 Scheduled Generation + DSM CHARGES will be the new
billing method
 Over Injection @ Low
Frequency CSTPS

 Generating more power than Scheduled Generation

For Example :
SG = 1450MW, AG = 1460MW, Deviation = 10MW, Freq = 49.95 Hz,
Deviation price rate = 463.1 paisa/unit, MOD rate = 309.98 paisa/unit

DSM Charge (A) = Deviation X 250 X Deviation price rate

= 10 X 250 X 394.3
DSM Charge (A) = 9857.5 Rs.
Energy charge as per DSM (B) = SG X 250 X MOD rate
= 1450 X 250 X 3.0998 = 1,123,677.5 Rs.
Energy billing as per present mechanism (C)
= AG X 250 X MOD rate
= 1460 X 250 X 3.0998 = 1,131,427 Rs.
Gain / Loss = A+B-C = 9857.5 + 1123677.5 – 1131427
= 2108 (Actual Gain for that 15 min block)
 Over Injection @ Low
Frequency CSTPS

 Generating more power than Scheduled Generation

For Example :
SG = 1450MW, AG = 1500MW, Deviation = 50MW, Freq = 49.95 Hz,
Deviation price rate = 463.1 paisa/unit, MOD rate = 309.98 paisa/unit

DSM Charge (A) = Deviation X 250 X Deviation price rate

= 30 X 250 X 394.3
DSM Charge (A) = 29572.5 Rs.
Energy charge as per DSM (B) = SG X 250 X MOD rate
= 1450 X 250 X 3.0998 = 1,123,677.5 Rs.
Energy billing as per present mechanism (C)
= AG X 250 X MOD rate
= 1500 X 250 X 3.0998 = 1,16,2425 Rs.
Gain / Loss = A+B-C = 29572.5 + 1123677.5 – 1,16,2425
= -9175 (Actual Loss for that 15 min block)
 Less Injection @ Low
Frequency CSTPS

Generating less power than Scheduled Generation

 Case 1 :
For Example :
SG = 1450 MW,
AG = 1416 MW,
Deviation = -34 MW, Freq = 49.94 Hz,
Deviation price rate = 493.7 paisa/unit.
DSM Charge = Deviation X 250 X Deviation price rate
= 34 X 250 X 394.3 = 41964 Rs.
Additional DSM charge on deviation between > 30 to <= 40 MW
= 4 X 250 X 20% of deviation price rate
= 4 X 250 X 98.74 = 987 Rs.
Total DSM Charge = 41964 + 987 = 42951 Rs.

Loss = -16603 Rs (Actual loss for that 15 min block)

 Less Injection @ Low
Frequency CSTPS

Case 2: SG = 1450 MW
AG = 1404 MW
Deviation = -46 MW
Freq = 49.99 Hz
Deviation price rate = 340.6 paisa/unit.
DSM Charge = Deviation X 250 X Deviation price rate
= 46 X 250 X 340.6 = 39169 Rs.
Additional DSM charge on deviation between > 30 to <= 40 MW
= 10 X 250 X 20% of deviation price rate
= 10 X 250 X 68.12 = 1703 Rs.
Additional DSM charge on deviation between > 40 to <= 50 MW
= 6 X 250 X 40% of deviation price rate
= 6 X 250 X 136.24 = 2044 Rs.
Total DSM charge = 39169 + 1703 + 2044 = 42916 Rs.

Loss = 7268 Rs (Actual loss for that 15 min block)

 Less Injection @ Low
Frequency CSTPS

Case 3 : SG = 1450 MW, AG = 1396 MW, Deviation = -54 MW

Freq=49.95 Hz, Deviation price rate = 463.1 paisa/unit.
DSM Charge = Deviation X 250 X Deviation price rate
= 54 X 250 X 394.3 = 62518 Rs.
Additional DSM charge on deviation between > 30 to <= 40 MW
= 10 X 250 X 20% of deviation price rate
= 10 X 250 X 92.62 = 2315 Rs.
Additional DSM charge on deviation between > 40 to <= 50 MW
= 10 X 250 X 40% of deviation price rate
= 10 X 250 X 185.24 = 4631 Rs.
Additional DSM charge on deviation > 50 MW
= 4 X 250 X 100% of deviation price rate
= 4 X 250 X 463.1 = 4631 Rs.

Total DSM charge = 62518 + 2315 + 4631 + 4631 = 74095 Rs.

Gain/Loss = 32248 Rs (Actual loss for that 15 min block)

 Over Injection @ HIGH
Frequency (> 50.05 Hz) CSTPS

 Generating more power than Scheduled Generation

For Example :
SG = 1450MW, AG = 1460MW, Deviation = 10MW, Freq = 50.07 Hz,
Deviation price rate = 0 paisa/unit, MOD rate = 309.98 paisa/unit

DSM Charge (A) = Deviation X 250 X Deviation price rate

= 10 X 250 X 294.30 (ACP Declared for the Day)
DSM Charge (A) = 7358 Rs. (Loss)
Energy charge as per DSM (B) = SG X 250 X MOD rate
= 1450 X 250 X 3.0998 = 1,123,677.5 Rs.
Energy billing as per present mechanism (C)
= AG X 250 X MOD rate
= 1460 X 250 X 3.0998 = 1,131,427 Rs.
Gain / Loss = A+B-C = - 7358 + 123677.5 – 1131427
= -15107 (Actual LOSS for that 15 min block)
 Under Injection @ LOW
Frequency (< 49.85 Hz) CSTPS

 Generating more power than Scheduled Generation

For Example :
SG = 1470MW, AG = 1460MW, Deviation = -10MW, Freq = 49.84 Hz,
Deviation price rate = 394.30 paisa/unit, MOD rate = 309.98 paisa/unit

DSM Charge (A) = Deviation X 250 X Deviation price rate

= -10 X 250 X 394.30 (Max Deviation Price Rate)
DSM Charge (A) = 9858 Rs. (Loss)

Additional DSM Charge = 9858

Energy charge as per DSM (B) = SG X 250 X MOD rate

= 1470 X 250 X 3.0998 = 1139176.5 Rs.
Energy billing as per present mechanism ( C)
= AG X 250 X MOD rate
= 1460 X 250 X 3.0998 = 1,131,427 Rs.
Gain / Loss = A+B-C = - (9858+9858) + 123677.5 – 1131427
= -11966 (Actual LOSS for that 15 min block)
 Additional Deviation Charges for Sellers CSTPS

Under-Injection by Seller
•Additional Deviation Charges shall be applicable for Sellers crossing
volume limits subject to Cap limit of [394.3] Paisa/kWh or as further
determined by the Commission. Additional Charges for deviation in
excess of deviation charges, are applicable for under injection when
frequency is between ‘49.85 Hz and above and 50.05 Hz and below’,
when deviation of the State deviation at regional periphery crosses the
State volume limit.

•Additional Deviation Charges shall not be applicable in case Seller

exceeds its Volume Limit (X) upto six (6) time-blocks within a day,
beyond which the Additional Deviation Charges shall be applicable
for Seller irrespective of the condition that Deviation for State at
state periphery is within Volume Limit (L) for the time-block or no
Additional Deviation Charges are payable for the State at the State
periphery.
Additional Deviation Charges for Sellers CSTPS

•Additional Charges for Deviation for under-injection by seller, during the

time-block when grid frequency is “below 49.85 Hz”, by the generating
stations whose tariff is determined or adopted by the Commission using coal or
lignite or gas supplied under Administered Price Mechanism (APM) as the fuel in
accordance with the methodology specified by the Commission as a percentage of
the Cap Rate or the Charges for Procedure for Deviation Settlement of State
Entities and Energy Accounting of the State

•Deviation corresponding to the grid frequency of the time block, or both

with due consideration to the behavior of the generating stations regulated
by the Commission towards grid discipline. This Cap Rate shall be
equivalent to 100% of the Cap Rate of main fuel (imported coal) as
determined by the Commission for deviations. [394.3] Paisa/kWh.
Additional Deviation Charges for Sellers CSTPS

Over-Injection by Seller

Additional Charges for deviation in excess of deviation charges, are not

applicable for over-injection when frequency is between ‘49.85 Hz and
above and 50.05 Hz and below’

No over-injection of electricity by a Seller shall be permissible when the

grid frequency is “50.05 Hz and above”
 Sign Change CSTPS
 Additional condition for a change in sign of the deviation shall be met
once every 6-time blocks by Buyer/Seller, failing which, additional
charges @20% of the Deviation Charges on daily base DSM
payable/ receivable as the case may be shall be levied for the duration
of continuance of violation.

To illustrate, if a state entity has positive deviation from schedule,

i.e. from 07.30 hours to 9.00 hours, sign of its deviation from
schedule shall be changed in the 7thtime block, i.e. 9.00 hours to
9.15 hours either from positive to negative or from negative to
positive. The additional Charge for violation of sign change
stipulation shall be leviable for each such violation during a day from
the date to be notified separately by the Commission
 Sign Change
CSTPS
 For Example :
Deviation DSM
Block Freq SG AG Deviation
Rate Charge
1 49.98 1450 1455 5 371.2 4640
2 49.95 1450 1456 6 463.1 6946
3 50.04 1450 1458 8 62.0 1240
4 50.01 1450 1460 10 248 6200
5 50.02 1450 1454 4 186 1860
6 50.04 1450 1457 7 62 1085
7 49.99 1450 1459 9 340.6 7663

 Sign Change = 20 % of Addition of DSM charge of 1 to 6 block

= 20 % of (4640+6946+1240+6200+1860+1085)
= 20 % of 21971 = 4394 Rs. (Loss due to Sign Change)
 Deviation Charges For 1 Day CSTPS

 Total deviation for a station /unit over the day should not exceed 1% .

In case of violation of this limit, 20% additional charge of daily DSM is

to be paid.
 Deviation as per DSM Regulations CSTPS

DECEMBER-
STAGE STAGE STAGE STAGE STATI
2020 (UPTO U-3 U-4 U-5 U-6 U-7 U-8 U-9
II III II & III IV ON
22/12/2020)

SG as per
MAHASLDC
DSM 117 130 247 336 276 198 809 1056 365 376 741 1798
Scheduling
Software

AG as per
MAHAGENCO 116 133 249 336 282 212 830 1079 371 382 753 1832
DSM Software

Difference
-1.37 3.18 1.82 0.62 6.16 13.9 20.67 22.49 5.56 5.81 11.33 33.82
(MW)

% Deviation -1.16 2.45 0.74 0.19 2.24 7.01 2.55 2.13 1.52 1.55 1.53 1.88
 Normative Parameters as per MERC for FY 2020-21
(As per MERC Order 196 of 2019) CSTPS
Normative MERC Parameters UoM U-3 to 7 U-8 & 9
AVF (%) % 80.00 85.00
Sp. Oil Consumption (SOC) ml/kWh 1.00 0.50
Auxilliary Power Consumption (APC) % 7.80 6.00
Transit Loss (TL) % 0.80 0.80
Hear Rate (HR) kCal/kWh 2688 2375
Annual Fixed Cost (FC) Rs Crs 981.68 1147.06
Return on Equity (RoE) Rs Crs 114.82 160.34
Energy Charge Rate (ECR) Rs/kWh 2.539 2.453
Daily Fixed Cost Rs Crs 2.69 3.14
Particulars UoM U-3 to 7 U-8 & 9
Fixed Cost Loss if one 210 MW Unit is Under S/D
Rs Crs 0.29
for One Day
Fixed Cost Loss if one 500 MW Unit is Under S/D
Rs Crs 0.70 1.57
for One Day
Fixed Cost Loss by 1% Deviation in MERC AVF Rs Crs 12.27 13.49
Sp. Oil Consumption Loss by 0.1 ml/kwh Deviation
Rs Crs 5.98 3.33
in SOC
APC Loss by 1% Deviation in APC Rs Crs 34.16 18.27
HR Loss by 1 kcal/kwh in HR Rs Crs 1.15 0.72
TL Loss by 0.1% in TL Rs Crs 3.09 1.70
 Return on Equity under MERC MYT Regulations, 2019
 Base Return on Equity for the Generating Company, at the rate CST ofP14
S per
cent per annum.
 In case of existing generating station, as and when any of the
requirements regarding FGMO /RGMO are found lacking based on the
report submitted by the SLDC, rate of Return on Equity shall be reduced
by 1.00% at the time of true-up, for the period for which the deficiency
continues.
 An additional rate of Return on Equity of 0.25% shall be allowed for
every incremental ramp rate of 0.10% per minute achieved over and
above the ramp rate of 1% per minute, subject to ceiling of additional rate
of Return on Equity of 0.50%, for the year in which such ramp rate is
achieved.
 An additional rate of Return on Equity of
0.50% for Unit for Mean Time Between Failure (MTBF) between 45
days to 89 days,
0.75% for Unit for Mean Time Between Failure (MTBF) between 90
days to 119 days,
1.00% for Unit for Mean Time Between Failure (MTBF) above 120 days.
 Return on Equity under MERC MYT Regulations, 2019
CSTPS
Yes
Reduce RoE New
by 1% till unit &
No
compliance No FGMO/
Change
report from RGMO
SLDC ready ?
Add 0.25% RoE for
Additional each incremental
Max. 0.5%
RoE for 0.1% ramp-rate ,
additional
Ramp-rate subject to maximum
RoE
> 1% of 0.5% additional
RoE
Base Max 15.5%
Min. 13% rate (=14% +
(=14% -1%) 14% 0.5% + 1%)

0.5% --> continuous

running for at least 45 Max. 1.0%
days additional RoE ,
Additiona 0.75% -- > continuous unit wise
l RoE for running for at least 90 additional RoE
reliability days will get added as
Yes 1% --> continuous per performance
running for at least 120 of individual unit
Old unit & No
days
Reduce RoE FGMO/RG
by 1% for the MO non- No
non- Change
compliance
compliance MERC orderwise
reported by
period SLDC ? 1.U 3 to 7
2.U 8 & 9
MTBF of CSTPS Unit for the FY 2020-2021
(Till NOVEMBER-2020) CSTPS

MTBF(days) Applicable Additional

Unit
(Up to OCTOBER-2020) ROE(%)
UNIT03 24 0.00
UNIT04 38 0.00
UNIT05 121 1.00
UNIT06 24 0.00
UNIT07 17 0.00
UNIT08 39 0.00
UNIT09 78 0.50

T-Code : zpts_mtbf
OLC Deviation Charges till (NOVEMBER-2020)C S T P S
Month No. Of Revisions Financial Implications
Apr-20 193 434250

May-20 254 571500

Jun-20 207 465750

Jul-20 268 603000

Aug-20 189 425250

Sep-20 173 389250

Oct-20 280 630000

Nov-20 210 472500

FY 20-21 1774 3991500

 CSTPS
CSTPS Chandrapur RoE benefit (Upto NOVEMBER-2020)
(MTBF factor)
RoE Total Total
Applicable
(Upto Benefit in No. of
MTBF CAPACITY Additional in
Unit NOV- RoE Forced
(Days) (MW) RoE Crores
2020) (including tripping
(%)
(At 14%) MTBF) s
UNIT-03 24 210 0 8.40 8.40 9

UNIT-04 38 210 0 8.40 8.40 7

UNIT-05 121 500 1 1.43 19.99 21.42 2

UNIT-06 24 500 0 19.99 19.99 9

UNIT-07 17 500 0 19.99 19.99 7

Stage II & III 1920 0.26 1.43 76.76 78.18 34

UNIT-08 39 500 0 53.59 53.59 6

UNIT-09 78 500 0.5 2.87 53.59 56.46 4

Stage IV 1000 0.25 1.91 107.19 109.10 10

DSM Dashboard CSTPS

http://mwcstps.mahagenco.in/apps/dsm_web/ - For
Unitwise Deviation

http://mwcstps.mahagenco.in/apps/dsm_web/stage/ -
For Stagewise Deviation

http://192.168.32.224/ - MAHAGENCO DSM Dashboard

ID – viewer@mahagenco.in
Password – M@h@genc0.1n

http://dsm-scheduling.mahasldc.in/Account/Login -
MAHASLDC DSM Scheduling Software
 CSTPS

Thank You…