CERC drafts ancillary services regulations

To provide for a regulatory mechanism for ancillary services in the interest of reliability, safety and security of the grid, the Central Electricity Regulatory Commission (CERC) has prepared the Draft Ancillary Services Regulations, 2021. These regulations aim to provide administered as well as market-based mechanisms for procurement, deployment, and payment of ancillary services for maintaining the grid frequency close to 50 Hz. In addition,these mechanisms will help restore the grid frequency within the allowable band as specified in the Grid Code and will relieve congestion in the transmission network, to ensure smooth operation of the power system, and safety and security of the grid.

These regulations shall be applicable to regional entities, including entities having energy storage resources and demand side resources that are qualified to provide ancillary services as well as other entities.Ancillary services will be of these types: PrimaryReserveAncillaryService(PRAS);SecondaryReserveAncillaryService(SRAS);Tertiary Reserve Ancillary Service (TRAS); and such other ancillary services as specified in the Grid Code. TheNodalAgencyshall,incoordinationwithRLDCsandSLDCs,estimatethequantumof requirement of SRAS and TRAS for such period and based on such methodology as specified in the Grid Code.The Nodal Agency shall re-assess the quantum of requirement of SRAS and TRAS on day-ahead basis and incremental requirement, if any, on real time basis.The CERC has invited comments and suggestions from the stakeholders and interested persons on thesedraft regulations tillJune 30, 2021.

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