The Union Cabinet
chaired by the Prime Minister Shri Narendra Modi has given its approval
for signing of a Memorandum of Understanding (MoU) between Forum of
Regulators (FOR) and the National Association of Regulatory Utility
Commissioners (NARUC) in the area of large-scale Grid Integration of
The MoU provides the following broad areas for cooperation in the area
of large scale integration of renewable energy:
i) Design of frameworks for Renewable Energy procurement-international
ii) Regulatory interventions for renewables development, such as state
and national Renewable Purchase Obligations (RPOs), Renewable Energy
Certificate (REC) framework.
iii) Load forecasting techniques and processes.
iv) Contracting/Power Purchase Agreements.
v) Renewables forecasting methods and how Renewable Energy forecasts are
used by operators.
vi) Renewable Energy integration - regulations and balancing using gas,
storage, and demand-side approaches; energy imbalance markets.
vii) Regulatory framework for ensuring grid discipline by generators
deterrents in the form of penalty for breach of discipline.
viii) Ancillary services including physical mechanisms, regulations and
ix) Data analysis and cost-benefit analysis for regulatory
The MoU envisages to promote information exchanges in the areas of
Renewable Energy integration regulations and balancing using gas,
storage, and demand-side approaches, energy imbalance markets. It will
enhance the efforts of India's power system for better management of
large-scale integration of Renewable Energy into the power grid.
The Forum of Regulators was constituted by the Ministry of Power vide
notification dated 16th February, 2005 under provisions of section
166(2) of the Electricity Act, 2003 with the primary objective of
harmonization of regulations in the power sector framed by the Central
Electricity Regulatory Commission (CERC), State Electricity Regulatory
Commissions (SERCs) and Joint Electricity Regulatory Commissions (JERCs).
In the past, in order to work on areas such as Demand Side Management
and Energy Efficiency, Forum of Regulators had signed an MoU with The
California Energy Commission, The California Public Utilities Commission
and the University of California (as Management and Operating Contractor
for Lawrence Berkley National Laboratory) on Electricity Demand and
Supply Efficiency Improvement to explore potential future collaboration
in the field of energy sector planning.
NARUC is the National Association in United States representing the
State Public Service Commissioners who regulate essential utilities. The
proposed MoU is under the larger bilateral agreement on Energy
Efficiency Commercialization and Innovation agreement signed between
United States and India. It is being pursued as a component of 'Greening
the Grid' project, launched under U.S-India 'Partnership to Advance
Clean Energy Deployment' (PACE-D).