To ensure grid security, the Central Electricity Regulatory Commission (CERC) has stipulated new guidelines to supplement the Deviation Settlement Mechanism (DSM) Regulations 2022. The Commission has created a new category of wind-solar generators and imposed DSM charges. It has also increased monetary incentives for both generators and procurers to keep the grid frequency within a safe range of 49.95-50.05 Hz.
While market participants adjusted to the new regime, given the continued frequency fluctuations, it became incumbent on the Commission to intervene in the interest of grid security and ensure grid participants help maintain grid frequency. According to the Commission, the system operator must estimate and procure adequate reserves and deploy them prudently to avoid frequency fluctuations and help maintain grid frequency.