KERC Draft 2024: Ancillary Services Regulations Overview for Karnataka's Grid Reliability and Efficiency

Brief Overview of the Draft Karnataka Electricity Regulatory Commission (Ancillary Services) Regulations, 2024

Purpose and Scope

The draft regulations aim to establish a robust ancillary services framework to ensure grid reliability, operational efficiency, and frequency stability amidst growing renewable energy penetration and demand complexities. These regulations apply to intra-state entities, including power generators, transmission and distribution licensees, and entities with energy storage or demand-response capabilities.

Key Features

1. Types of Ancillary Services:
   • Primary Reserve Ancillary Services (PRAS): Immediate response via governor action to maintain frequency.
   • Secondary Reserve Ancillary Services (SRAS): Automated response through AGC to manage grid stability.
   • Tertiary Reserve Ancillary Services (TRAS): Reserves activated based on despatch instructions.
   • Any other ancillary services defined by the Karnataka Electricity Grid Code (KEGC).
2. Operational Framework:
   • Eligibility: Generators and entities must have SCADA systems, AGC capability, and a minimum response capacity of 1 MW.
   • Activation: Based on deviations from grid norms, calculated as per the Area Control Error (ACE) formula.
   • Procurement: Nodal Agency (State Load Despatch Centre) will handle procurement through day-ahead and real-time mechanisms.
3. Performance Monitoring:
   • Providers must adhere to control signals and performance will be evaluated against set benchmarks.
   • Non-performance can result in disqualification or penalties.
4. Payment & Settlement:
   • Payments are based on energy or compensation charges, with no retrospective adjustments.
   • SRAS providers are directly compensated by the State Deviation Settlement Mechanism Account (SDSMA).
5. Transparency & Accountability:
   • Regular publication of operational data and feedback reports by the Nodal Agency.
   • Stakeholder involvement through consultations during the detailed procedural development phase.

Implications for Stakeholders

The regulations aim to foster a competitive market for ancillary services while encouraging innovation in grid management. They emphasize transparency and accountability, ensuring a balanced approach to grid security and economic viability.

1. Stakeholder Roles
   • Generators: Obligated to maintain operational readiness for ancillary services and provide capacity as required. Implications include increased operational transparency and adherence to control signals.
   • Transmission Licensees: Must ensure infrastructure supports ancillary service requirements and maintain robust communication with nodal agencies.
   • Distribution Licensees: Need to align demand-side management with ancillary service protocols, potentially incurring costs for upgrades.
   • Nodal Agencies (SLDC): Central to planning, procuring, and deploying ancillary services. Responsibilities intensify in real-time management.
   • Open Access Consumers: Must comply with demand response requirements, potentially impacting their operations.
2. General Implications
   • Operational: Increased reliance on real-time systems like SCADA and AGC.
   • Financial: Changes in cost structures for ancillary service providers and consumers.
   • Regulatory: Need for compliance with detailed procedures and performance metrics.