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

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.