S.K. Soonee, Former and Founding Chief Executive Officer, Power System Operation Corporation Limited (now GRID-INDIA); and Debasis De, Former Executive Director, National Load Despatch Centre, GRID-INDIA
The successful implementation of Security Constrained Economic Despatch (SCED) at the national level by Grid Controller of India Limited (GRID-INDIA) in April 2019 has already demonstrated the potential of advanced optimisation tools in improving both the economy and the reliability of the Indian power system. The national SCED framework enabled cost-effective re-despatch of inter-state generating stations (ISGS), resulting in measurable savings, enhanced system security, and more efficient utilisation of available resources. These encouraging outcomes created the momentum for extending SCED beyond the central pool and exploring its applicability at the state level.
Rationale
The rationale for bringing SCED into state load despatch centres (SLDCs) is both economic and strategic. States operate a diverse mix of generating stations, including state-owned thermal plants, independent power producers, and rapidly growing renewable portfolios. Hence, they require coordinated despatch to ensure least-cost generation while maintaining grid reliability.
Traditional Merit Order Despatch (MOD), the so-called bucket-filling approach, though simple, often falls short in capturing real-time system constraints, ramping requirements, transmission constraints and dynamic market opportunities. By adopting SCED, states can achieve greater economic efficiency, manage network and ramping constraints, and build operational discipline aligned with the evolving national framework of security, flexibility and low-carbon transition
Initiatives of FOLD
Recognising the importance of extending optimisation practices to the state level, the Forum of Load Despatchers (FOLD) initiated the “MY-SCED” project to guide the implementation of intra-state SCED. Acting as a collaborative platform of RLDCs and SLDCs under the aegis of GRID-INDIA, FOLD has provided a structured mechanism for discussions, knowledge sharing, and consensus-building on the roadmap for the adoption of SCED in states.
Initial preparation in the states
The transition from MOD to SCED required significant groundwork. As a first step, several states initiated offline studies, often in collaboration with academic institutions, to assess the feasibility of SCED using historical scheduling data. These exercises enabled the SLDCs to familiarise themselves with optimisation concepts, evaluate economic savings, and identify operational advantages compared to conventional despatch. Offline runs provided a low-risk environment for operators to understand data requirements, test solver performance, and gain confidence before moving to online pilots. Importantly, the implementation of the SAMAST (Scheduling, Accounting, Metering and Settlement of Transactions in Electricity) framework, which had already laid down the processes for transparent scheduling and settlement in many states, is the pre-requisite for the implementation of intra-state SCED.
Capacity building
Alongside technical preparations, states invested in developing institutional and human capacity. In-house teams were formed, workshops organised, and collaborations with academic partners initiated to build confidence in optimisation. A significant enabler in this process has been the CABIL (Capacity Building of Indian Load Despatchers) framework, which emphasises the requirement for capacity building of SLDC executives for further development.
Adequacy of human resources
The MoP has already issued Workforce Adequacy Guidelines for Load Despatch Centers in October 2024 and all states are expected to take the required initiatives to strengthen their human resources, especially for such activities like optimisation, resource adequacy requirement, required for sustainability.
Vendor development
Multiple vendors are working in different states to manage the present scheduling applications. They are only expected to manage the proposed SCED application. Hence, the development of manpower is an exercise to be carried out in states to ensure sustainability.
Collaboration with academia
Several states have already advanced their SCED initiatives. Maharashtra has taken a decisive step, with the Maharashtra Electricity Regulatory Commission (MERC) issuing an order in April 2025 for a six-month online SCED pilot in collaboration with IIT-Bombay. In the Western Region, the Madhya Pradesh SLDC has constituted dedicated in-house teams, while the Gujarat SLDC is working with IIT-Gandhinagar to design its pilot. In the northern region, Delhi’s BRPL has formed a committee with IIT-Bombay, and Uttar Pradesh is progressing under IIT-Kanpur’s guidance. In the southern region, Telangana has engaged IIT-Hyderabad to support its work, and Karnataka has formally recognised SCED and SCUC in the Karnataka Electricity Grid Code, 2025.
Publications
Active states are documenting the results of their pilot study through publications and technical papers, which is also a good sign towards the implementation of intra-state SCED.
Implementation challenges
The implementation of intra-state SCED has brought unique challenges. While the national SCED provided a clear conceptual foundation, translating it into state-level operations revealed new issues shaped by local conditions and institutional maturity. These challenges, though varied, offer valuable learning for the gradual evolution of SCED.
Integration of application
Technical readiness has been a key concern. Most SLDCs had limited prior exposure to optimisation software and platforms such as GAMS, which are central to SCED. Integrating schedule data with the optimisation model, validating outputs, troubleshooting infeasibilities, and ensuring continuous operation require expertise that is still being developed. Hardware infrastructure, particularly high-performance computing and IT systems for data integration, has also required significant upgrades to support real-time optimisation runs and associated storage requirements.
Regulatory mandate
Institutional and regulatory frameworks add complexity. While the Central Electricity Regulatory Commission has defined SCED at the national level and included it in IEGC–2023, state regulations vary widely in the treatment of scheduling, despatch, and generator obligations. Aligning SCED with state grid codes, tariff mechanisms, and regulatory approvals has required significant effort and consultation.
Model development
Another challenge lies in designing models consistent with state operational philosophies. Each state follows detailed grid code provisions and regulatory clauses that have evolved to suit local realities. Translating these into optimisation logic is not straightforward. Provisions on merit order, treatment of shared resources, and decentralised scheduling must all be faithfully represented in the model. This requires both technical modelling expertise and deep familiarity with operational practices. Bridging the gap between regulatory language and mathematical formulation has emerged as one of the most complex aspects of SCED implementation.
Visualisation
Visualisation dashboards have been equally challenging. Dashboards are critical to translating SCED results into actionable insights for operators and decision-makers. However, system integrators engaged for dashboard development often lacked experience with power system optimisation. Considerable effort is needed to explain SCED outputs, define performance indicators, and design user-friendly interfaces. The process has been iterative, requiring refinements to achieve dashboards that are both technically accurate and practical for real-time decision-making.
Infeasibility handling
Parallel operation of SCED engines with present scheduling application is proposed, which has helped build confidence, but has also revealed issues. Solver convergence, handling transmission constraints, and respecting generator ramping limits during real-time despatch remain areas that need attention. To ensure security and contractual compliance, states are approaching the transition cautiously and incrementally.
Key learnings
Early studies and pilot runs have produced valuable lessons.
Data availability
One of the most important has been the critical role of accurate, granular input data. Ramping characteristics and transmission constraints must be captured with far more precision.
Execution configuration
Running SCED engines in parallel with MOD has also proven invaluable. This dual approach has allowed operators to compare optimised despatch with traditional despatch in real time, build trust in the new framework, and identify solver issues before full-scale adoption.
Challenges in executing the model
Executing intra-state SCED involves multiple challenges. A key issue is day changeover, where the first block of a new day must inherit conditions from the last block of the previous day, which becomes complex with updated models and changing input formats. Another challenge is deciding how many blocks to optimise at one go, since running multiperiod is impractical. RTM inputs arrive progressively, altering the load generation balance and requiring rolling horizons. Finally, past block results cannot be revised once implemented, even if later optimisation suggests higher cost savings. Balancing continuity, adaptability, and compliance under these constraints makes execution intricate.
Solver performance
The performance assessment of the intra-state SCED model shows that computational efficiency and time taken is insignificant in the context of operational scheduling. The pre-solve stage, which involves preparing the model, takes only about 0.08 seconds, while the solver itself completes the optimisation in approximately 0.17 seconds. Even when adding compilation, inputoutput operations and reporting, the overall execution time is less than a minute.
Visualisation
Visualisation dashboards, even in preliminary form, have significantly improved acceptance. Graphical displays of re-despatch, cost savings, and system constraints have made SCED outputs more transparent and useful for both operators and decision-makers.
Regulatory mandate
A further learning has been the importance of a clear regulatory mandate. Most State Grid Codes still prescribe MOD as the scheduling mechanism, creating uncertainty for SLDCs. Without explicit regulatory orders authorising SCED, progress remains confined to studies and pilots. The experience underscores the need for regulatory clarity through state orders or grid code amendments.
The way forward
The preparatory work and pilots demonstrate that intra-state SCED, though challenging, holds transformative potential.
Regulatory roadmap
To realise this potential, states require a phased roadmap built on regulatory support, technical readiness, and institutional coordination. Regulatory clarity is the most pressing need. Explicit directions from the SERCs are essential to authorise SCED as a despatch mechanism, and guidelines on the treatment of contracts, open access, technical minimum for shared generators and renewable integration must be formalised.
FOR initiatives
A uniform regulatory framework across states has become the need of the hour to ensure consistency and efficiency in operations. The Forum of Regulators (FOR) is expected to play a pivotal role in driving this harmonisation by taking the necessary initiatives and providing guidance for its timely implementation.
Gate closure
The harmonisation of gate closure timelines between the states and the national framework also needs to be undertaken in a phased manner. Aligning gate closure across jurisdictions is essential to enable seamless coordination and achieve overall optimisation of generation resources at the all-India level.
Despatch audit
At present, implementing a despatch audit, as practised in several other countries, is challenging in Indian states due to the opacity of existing processes. However, the adoption of SCED introduces transparency in scheduling and despatch decisions, creating the possibility of an objective audit framework. With standardised tools, the process could be independently verified and audited by a third party, thereby enhancing accountability and trust in system operations.
Capacity building
Capacity building within SLDCs remains vital. Continuous capacity building with academic collaborations and hands-on exposure through pilots will reinforce this capacity. Establishing in-house optimisation teams, as seen in pioneering states, should become a replicable model.
Dashboards should evolve into comprehensive operational tools that support real-time decisions and offer analytical insights for regulators and policy-makers.
Coordination among States
Sharing best practices will reduce duplication of effort and shorten the learning curve across states. A strong monitoring and feedback framework is also needed. Experiences from one state should be systematically documented and shared through FOLD and GRID-INDIA to inform others, enabling collective progress.
Advanced tool for reform
Finally, SCED should be viewed as part of a broader reform trajectory. Its implementation complements real-time markets, reserve products, ramping services, and emission-constrained despatch. In this way, intra-state SCED will not only deliver cost savings and system security but also provide important information about the systems and prepare states for the long-term transition towards a flexible, market-driven, and low-carbon grid.
Conclusion
The experience of preparing for and piloting intra-state SCED has highlighted both the opportunities and challenges in introducing optimisation-based despatch at the state level. States have taken commendable steps by conducting studies, forming dedicated teams, and collaborating with academia. At the same time, challenges of data quality, regulatory clarity, system integration, and operator readiness underscore the need for a phased approach.
The key lesson is that SCED is not just a technical exercise; it demands regulatory support, institutional coordination, and acceptance among operators and stakeholders. Looking ahead, intra-state SCED can become a cornerstone of India’s power sector reforms. By aligning state-level operations with the national vision of efficiency, flexibility, and sustainability, SCED offers a pathway to harmonised grid operation. With continued commitment from the regulators, SLDCs, utilities, and supporting institutions, SCED can evolve from pilots into a robust operational framework.