Cost of penalties for deviation of wind power forecasting in india

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Transcript of Cost of penalties for deviation of wind power forecasting in india

Page 1: Cost of penalties for deviation of wind power forecasting in india

del2infinity Consulting www. del2infinity.com

For Business enquiries

Bishal Madhab,Partner,

[email protected]

9620587138

For Technical enquiries

Abhik Kumar Das, Partner

[email protected]

07760989341

“ACCURATE WIND POWER FORECASTING IS NO MORE EXPENSIVE with del2infinity”

Cost of Penalties for deviation of Wind Power Forecasting in India

With increasing penetration of wind power having unscheduled fluctuations, system

stakeholders face massive difficulties in maintaining grid reliability; hence the forecasting and

scheduling of wind power is essential for system stability. Though the scheduling is mandatory

with effect from January 1, 2012, earlier this year, the Central Electricity Regulatory

Commission (CERC) introduced a robust framework to strengthen forecasting in

the renewable sector in India. The CERC also issued the Indian Electricity Grid Code (Third

Amendment) Regulations, 2015 and Deviation Settlement Mechanism and related matters

(Second Amendment), Regulations 2015.

Based on comments from all stakeholders during a public hearing at New Delhi, the CERC

recently published a Statement of Reasons document detailing the importance of wind/solar

energy forecasting. The regulation laid down the detailed aspects of wind/solar energy

forecasting to be done by generators in India. The mechanism is applicable from November 1,

2015.

The key features of the mechanism are mentioned below:

The mechanism shall be applicable to wind and solar generators.

Scheduling of wind generators have been made mandatory for aggregated capacity of 50

MW and above.

The maximum number of revisions has been increased from 8 to 16.

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A new forecast error computation formula has been formulated, which is:

=100*(Scheduled Generation-Actual Generation)/Available Capacity.

The penalties for deviation have been computed as per Power Purchase Agreements

and shall be levied for any deviation beyond +/-15%

It is required to calculate the approximate average cost of penalties for deviation of wind power

forecasting. Without showing the detailed statistical analysis, this article shows some important

statistical relations and approximations to measure the cost of penalty. For simplification let

consider,

C = average cost per available capacity

c(e) = cost of penalty due to error e where error in new regulation is defined as

,

here AvC = available capacity, xa = actual power and xf = forecast power

If h(e) represents the probability distribution of error e, it is easy to show that the cost per

available capacity can be represented as,

For a good forecasting with maximum 16 revision, we can consider that the mean of

distribution h(e) is approximately 0, variance is and h(- e) = h(e). Considering the no

penalty band as [-m,+m], we can consider the deviation charge follows an linear relation as

| | if | |

= 0 , otherwise

Using some algebraic manipulation we can show that

[ ∫

]

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The integral part of the right hand side of the previous equation can be approximated and with

some basic approximation we can state that

[

]

Where

Here represents the probability that the absolute error |e| lies in [0, m]. If we

approximate the variance as

( )

The average cost per available capacity can be represented as

( )

According to CERC (recently published Statement of Reasons document),

Abs Error (%of AvC) |e| Deviation Charge

15%-25% 0.15-0.25 0.1 of PPA rate

25%-35% 0.25-0.35 0.2 of PPA rate

>35% >0.35 0.3 of PPA rate

Here the penalty band is discrete (not continuous), and it is easy show that

| | for |e| = 0.25, 0.35, 0.45. With some approximation we can assume

that k is approximately equals to PPA rate and the average cost per available capacity

transforms into

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( )

For PPA rate = Rs. 5 / kW-Hr, the average cost per available capacity in Rs / MW-Hr can be

represented as

( )

The above analysis is basic statistical approximation on the cost of penalties due to deviation

charge of wind power forecasting. Similar analysis can be done in solar power forecasting. For

detail calculations, plant specific analysis and forecasting issues please contact us at

[email protected].

Scenario m C

(Rs / MW-Hr)

C

(% of PPA rate)

Weak forecast (Old Regulation) 0.30 0.25 459.37 9.19 %

Weak forecast (new Regulation) 0.15 0.25 677.34 13.55 %

Del2infintiy (old regulation) 0.30 0.90 61.25 1.2 %

Del2infinity (new regulation)

Worst Case

0.15 0.80 180.62 3.6 %

del2infinity (new regulation) 0.15 0.95 45.16 0.90 %