Standard Operating Procedure for Approved List of Manufacturers and Models for Wind Turbines (ALMM-Wind) and Approved List of Manufacturers and Models for Wind Turbine Components (ALMM-WTC) – EQ
Summary:
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## 🏛️ **1. Overview and Purpose**
The **Karnataka Electricity Regulatory Commission (KERC)** issued this **draft notification on 13 October 2025**, inviting comments and objections from the public and stakeholders by **14 November 2025**.
The regulation is titled the **“KERC (Framework for Demand Flexibility (DF)/Demand Side Management (DSM)) Regulations, 2025”**, and it aims to:
* Promote **energy efficiency (EE)** and **demand-side management (DSM)** to reduce peak demand.
* Introduce **Demand Flexibility (DF)** — enabling consumers and distribution licensees to manage energy usage dynamically.
* Integrate **DF/DSM** into Karnataka’s **Resource Adequacy (FRA) Regulations, 2024**, ensuring energy security and system reliability.
* Replace the **KERC DSM Regulations, 2015**, with an updated, technology-driven, measurable, and transparent framework.
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## ⚙️ **2. Key Concepts and Definitions**
The regulations define several new and revised terms critical to DF/DSM implementation:
* **Aggregator:** A registered entity managing multiple services such as demand response, distributed generation, and energy storage within a distribution area.
* **Demand Flexibility (DF):** The capacity of consumers to vary electricity consumption patterns (hourly or otherwise) to balance supply-demand and reduce costs.
* **Demand Flexibility Portfolio Obligations (DFPO):** Annual targets for flexible demand to be maintained by each distribution licensee to support grid balance and renewable integration.
* **DF/DSM Cell:** A specialized unit within each Distribution Licensee dedicated to planning, executing, and monitoring DF/DSM activities.
* **Independent Verification Agencies (IVA):** Third-party experts responsible for **Evaluation, Measurement & Verification (EMV)** of DF/DSM programs.
* **Load Management:** Shifting or reducing electricity consumption from peak to off-peak hours.
* **Load Research:** Analytical assessment of consumer electricity usage patterns via metering data and audits.
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## ⚡ **3. Applicability and Commencement**
* These regulations apply to **all Distribution Licensees and their successor entities** in Karnataka.
* They will come into force upon publication in the **Karnataka Gazette**.
* The objective is to make **DF/DSM** an integral part of operational and planning functions within utilities.
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## 🧩 **4. Licensee Obligations and Operational Framework**
### **a. Integration of DF/DSM in Operations**
Every distribution licensee must:
* Adopt DF/DSM in day-to-day operations.
* Conduct **Load Research** to identify demand patterns.
* Design, implement, and continuously update DF/DSM programs for measurable results.
### **b. Establishment of DF/DSM Cell**
Each licensee must form a **DF/DSM Cell** with sufficient staff and technical expertise to carry out activities mandated under these regulations.
### **c. Cost Recovery**
* Costs incurred in DF/DSM (research, design, implementation, monitoring, EMV) are recoverable under the **Capital Investment Plan** in the **Multi-Year Tariff (MYT)** and **Annual Performance Review (APR)**.
* For FY 2025–26 to 2027–28, funds may be reallocated within existing capital expenditure approvals.
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## 📊 **5. DFPO Targets and Incentive Mechanism**
### **a. DFPO Trajectory**
Each distribution licensee must achieve a minimum DFPO target (as % of previous year’s peak demand):
| Financial Year | DFPO (%) |
| ————– | ——– |
| 2026–27 | 0.5% |
| 2027–28 | 1.0% |
| 2028–29 | 1.5% |
| 2029–30 | 2.0% |
Future targets will be revised by KERC periodically.
### **b. Incentives and Penalties**
* **Incentive:** ₹0.20 crore per MW achieved above target.
* **Penalty:** ₹0.20 crore per MW shortfall.
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## 🏗️ **6. Types of DF/DSM Programs**
Distribution licensees may implement programs targeting:
1. **Time-based and selective pumping** for irrigation, municipal and village water systems.
2. **Smart charging** for EVs — two-wheelers, buses, fleets, and freight vehicles.
3. **Behind-the-meter battery energy storage systems.**
4. **Heat pumps** and **thermal energy storage** in residential, commercial, and industrial sectors.
5. **Efficient refrigeration/cold storage** systems.
6. **Appliance replacement** with energy-efficient equipment.
7. **Behavioural programs** to encourage conscious energy use without capital investment.
Implementation may be done directly or via **Aggregators**, but **Aggregators and IVAs must be separate entities** to ensure transparency.
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## 💰 **7. Funding Framework**
* DF/DSM costs will be integrated into **MYT filings** and recovered post **prudence check** by KERC.
* KERC may later mandate a **DF/DSM charge** in tariffs to create a dedicated fund for future programs.
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## 📏 **8. Evaluation, Measurement, and Verification (EMV) Framework (Chapter III)**
The EMV process ensures transparency and accountability in assessing DF/DSM programs.
### **a. Evaluation Types**
1. **Impact Evaluation** – Quantifies actual energy/demand savings.
2. **Process Evaluation** – Examines design, efficiency, and implementation challenges.
3. **Market Effects Evaluation** – Measures market transformation and new consumer participation.
### **b. Methods**
* **Measurement & Verification (M&V)** under **IPMVP (Options A–D)**.
* **Deemed Savings Approach** for standardized programs.
* **Large-scale data analysis** using smart meter data for time-series comparison.
### **c. Role of IVAs**
* Must be certified professionals (BEE-certified Energy Auditors or CMVPs).
* Cannot be involved in program implementation.
* Responsible for accurate data analysis, statistical review, and EMV report submission.
### **d. Reporting**
EMV reports must include:
* Program description, methods, instruments, and assumptions.
* Sampling details, raw data, and contact list of participants.
* IVA credentials and findings.
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## 📜 **9. Reporting, Transparency, and Documentation**
Each Distribution Licensee must **publish annually** on its website:
* Load research reports.
* Appliance saturation and usage studies.
* DF/DSM portfolio & implementation plans.
* Annual EMV and cost-effectiveness reports.
Additionally, detailed **project reports (DPRs)** must be submitted with the MYT filing using a standard format (Annexure 1) covering:
* Objectives and targets.
* Year-wise funding plan.
* Program implementation details.
* Expected achievements and EMV strategy.
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## ⚖️ **10. Miscellaneous Provisions (Chapter IV)**
* **Powers to Remove Difficulties:** KERC may take necessary steps for smooth implementation.
* **Orders and Practice Directions:** Commission may issue additional clarifications.
* **Repeal:** DSM Regulations, 2015 stand repealed upon enforcement of these 2025 Regulations.
* **Savings:** Previous actions under old regulations remain valid.
* **Amendment Power:** KERC can modify or relax provisions in public interest.
* **Interpretation:** KERC’s decision will be final in case of disputes.
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## 🧾 **11. Annexures (Technical Formats and Methodologies)**
* **Annexure 1:** Format for DF/DSM portfolio & implementation action plan.
* **Annexure 2:** Methods for **PCT** and **SCT** testing (consumer-level and societal benefit evaluations).
* **Annexure 3:** Description of **IPMVP** methodologies (Options A–D) for measurement and verification.
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