Workshop on RE Integration & System Restoration

WRLDC, Mumbai
9th – 10th February 2017

Ancillary Services

Sally Hunt: Making Competition Work in Electricity

S.C. Saxena
Dy. General Manager, National Load Despatch Centre
Power System Operation Corporation (POSOCO), Delhi 1
 Evolution of Electricity Market in India
2016: Ancillary Services
2015: 24 x 7 Market
2015: RE Framework
2014: Deviation Settlement
2012: Sub-Hourly Market
2011: Transmission Pricing (POC)
2010: Power Market, REC

2009: Grant of Connectivity, LTA and MTOA

2009: Trading License

2009: Congestion Management

Future…
2009: Imbalance (UI) • Futures & Forward Market
• Capacity Market
2008: Power Exchange
• Flexibility, Ramping Products
2004: Open Access
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 Ancillary Services in Indian Power System

• As per IEGC, 2010

“Ancillary services in power system (or grid) operation means services necessary to support the
power system (or grid) operation in maintaining power quality, reliability and security of the
grid, e.g active power support for load following, reactive power support, black start etc”

• The Appellate Tribunal for Electricity, judgment in appeal no.202

(13th December 2006)
“Ancillary services are those functions performed to support the basic services of generation,
transmission, energy supply and power delivery. Ancillary services are required for the reliable
operation of the power system.”
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 Ancillary Services in Power System
 Classification
 Frequency Control Services
 Primary, Secondary, Tertiary control
 Reserves
 Spinning Reserves/ Reliability Reserves
 Supplementary Reserves Source: Yann Rebours- ‘A Comprehensive Assessment of Markets for
Frequency and Voltage Control Ancillary Services’ – 2008.

 Backup reserves
 Network Control Services
 Power flow control
 Voltage control
 System Restart Services
 Black-start
Source: FERC Presentation in 2014 ACI conference - Ancillary Services & PEV Charging
 CERC Regulatory Framework for Reserve Regulation
Ancillary Services (RRAS)
Half
yearly
CERC RRAS feedback
Detailed implementation submitted
CERC Procedures review by to CERC
Regulations approved Hon’ble on
notified on on Commission on 17th
13th Aug15 08th Mar16 27th July at NLDC Nov’16

CERC order Ancillary 3 month CERC

on Mark Up- Services feedback revised
on Implemented submitted Detailed
29th Feb 16 on to CERC Procedure
12th Apr16 on on
01st 21st
Aug16 Nov’16
Role of Nodal Agency
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 Role of RRAS Provider and RPCs
• Fixed charge, Variable charge and any other
statutory charges for merit order dispatch –
Monthly basis
• Preparation of RRAS Providers Energy/
Deviation Accounts
• Despatch & Withdrawal Instructions
Nodal through RLDCs by Nodal Agency
Agency • Incorporation of instructions in the
Schedules of RRAS Providers and respective
VAE by RLDCs

RRAS
RPC
Provider

Fixed charge, Variable charge and any other

statutory charges
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 Scheduling, Despatch & Withdrawal of RRAS
Scheduling
• Quantum of generation
directly incorporated in the
schedule of RRAS providers.
• Regulation Up Service
• Power scheduled from
the generating station to
the VAE
• Regulation Down Service
• Power scheduled to the
generating station from
the VAE
• Energy despatched under
RRAS shall be deemed as
delivered ex-bus.
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Despatch Withdrawal
• RRAS Generation scheduled • Nodal Agency direct the
to the VAE in any one or RRAS Provider to withdraw
more Regional Grids from the time block
• RRAS deemed to be • Satisfied that the
triggered for Time period circumstances leading to
specified by the Nodal triggering of RRAS
Agency Services no longer exist
• Schedules of the RRAS
Provider revised by the
quantum scheduled by the
Nodal Agency
• Deviation in schedule of
RRAS Providers beyond the
revised schedule as per
CERC DSM Regulations
 RRAS Energy Accounting & Settlement
RRAS Energy Accounting
• Done by RPC on weekly basis along with DSM Account
• Based on interface meters data and schedule of RRAS Providers
• Separate statement maintained along with Regional Deviation Settlement Account for RRAS
RRAS Energy Settlement

• Under separate account head of RRAS from Regional DSM Pool Account
• Regulation Up
• RRAS provider paid at their fixed & variable charges with markup
• Regulation Down
• RRAS provider shall pay 75 % of variable charges to Pool Fund
• No retrospective settlement
• Any deviation settled as per CERC DSM Regulations, 2014
• Penalties for sustained failure to provide RRAS and violation of directions of RLDC
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 Key Statistics of RRAS Implementation
RRAS Providers:
48 Nos.
Lowest Variable Charge
~ Rs. 1.25 / Unit
(Korba – WR)
Maximum ‘Up’
Regulation :
3746 MW
Energy Despatched:
Up – 6 MU / day
(0.2% of Energy met)
Average Variable charges
retained by RRAS
Capacity under RRAS:
51 GW providers- 50 Paise/Unit
Highest Variable Charge Average
~ Rs. 8.12 / Unit Mark Up paid to RRAS
(Anta LF– NR) provider- 50 Paise/Unit
Maximum ‘Down’ Avg. Daily Number of RRAS
Regulation : Instructions : 06 to 07 Nos.
1946 MW
Average Cost for Regulation
Energy Despatched: Up Despatch: ₹ 4.34/ Unit
Down – 1 MU / day
(0.03% of Energy met)
Average variable Charge
refunded to DSM Pool for
Regulation Down
: ₹ 1.53/ Unit
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Key to Ancillary Services - Undespatched Surplus in ISGS

URS ~ 12,000
MW

URS ~ 2,000
MW

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 Cues for System Operator…Weather Forecast (1)
NOWCAST
Forecast Report Weblink:
http://imd.gov.in/pages/n
http://imd.gov.in/pages/allin
owcast.php
diawxfcbulletin.php

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Cues for System Operator…Power Exchange Prices (2)

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 Cues for System Operator…Frequency Profile (3)
Frequency profile for 29.09.16 (Thursday)
Frequency profile for 23.09.16 (Friday)

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Cues for System Operator…Load Forecast (4)

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Cues for System Operator…Reserves Monitoring (5)

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 Ancillary Services Available for Despatch
Possible UP Regulation

Applied UP Regulation

Applied DOWN Regulation

Possible DOWN Regulation

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 In-house developed Ancillary Services Software Application

RRAS Providers as per

merit order
Variable cost
Option for Regions wise Ancillary Time Block & quantum
despatch available for despatch

Option for Area wise Ancillary despatch

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 Weblink:
www.posoco.in

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Variable Charges of RRAS Providers
RRAS Despatch

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Triggering Criteria: Trend of Load Met

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Triggering Criteria: Trend of Load Met

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Triggering Criteria: Extreme Weather Conditions

On 24th May 16 , inclement weather in Northern region and continuously falling demand
RRAS Down Regulation was applied – 1595MW RRAS Down applied in all Regions
(SR contributed maximum RRAS down of 516 MW)
Triggering Criteria: Extreme Weather Conditions

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Triggering Criteria: Transmission Line Outage
Triggering Criteria: Trend of Frequency
Triggering Criteria: Force Majeure Condition (High Silt)

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RRAS Despatch

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SCADA Visualization

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RRAS Despatch Duration Curve

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 Frequency Profile
Maximum Frequency

Average Frequency ~ 50 Hz.

FVI consistently hovering around 0.03 to 0.05

Minimum Frequency

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Frequency Profile

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 RRAS Providers following RRAS Schedule
Ramagundam “Up” Dadri “Up” Kahalgaon-II “Up”

Dadri “Down” Vindhyachal – III “Down” Vindhyachal – II “Down”

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 Information Dissemination
• Information on Nodal Agency (NLDC) Website
• 1.RRAS Instruction summary-
http://103.7.128.238:8080/ancl/viewregweb.php?sd=01-Jan-2017&ed=19-Jan-2017
2.Monthly report- https://posoco.in/reports/ancillary-services-monthly-reports/ancillary-services-
monthly-reports-2016-17/
3. RRAS Providers details- https://posoco.in/reports/as3-details/
4.Half year Feedback report- https://posoco.in/reports/half-year-feedback-to-cerc/

– ERPC- http://www.erpc.gov.in/home/commercial_p/anciliary_services
– NRPC- http://www.nrpc.gov.in/comm/ancillaryservices.html
– NERPC- http://www.nerpc.nic.in/Ancillary%20Service.php
– SRPC- http://www.srpc.kar.nic.in/html/all_uploads.html
– WRPC- http://www.wrpc.gov.in/Commercial_rras_dat.asp
• RRAS Accounts uploaded by RPCs
– ERPC- http://www.erpc.gov.in/home/commercial_p/ui_and_deviation_accts
– NRPC- http://www.nrpc.gov.in/comm/rras.html
– NERPC- http://www.nerpc.nic.in/devreport.php
– SRPC - http://www.srpc.kar.nic.in/html/all_uploads.html
– WRPC- http://www.wrpc.gov.in/Commercial_rras_chrg.asp 36
Issues Addressed
Addressed by the Hon’ble Commission Revised Procedure approved by Hon’ble commission
dt 21st Nov’16
• Minimum threshold raised to 10 MW
• Instructions to RRAS Providers via
RLDCs
• Refund of Fixed Charges to the
beneficiaries proportionate to
surrender
• Periodicity of Refund of fixed charges
changed from weekly to monthly
• Previous month RRAS provider details
applicable if not submitted timely
 Key Learnings from Indian Experience
• Layer of Centralized Ancillary Despatch over Decentralized Layer of Scheduling Process
• Improved Frequency Profile.
• Ramp Management - Evening Peak / Morning Peak
• Real Time Congestion Management
• Grid Resilience – Handling Low Probability High Impact Events
• Availability of Variable charges for first time in public domain
– Better Despatch Decisions
– Changing Merit Order month on month
• Handling impact of extreme weather conditions on the grid
• Reliability Support
• Information Dissemination
• Benefits to stakeholders – Generators & State Utilities
• Freedom and Choice available to states retained 38
 Next Steps
• Scheduling limit for additional reserves – IEGC Amendment
• Load and RE Forecasting by the States
• Technical minimum – 55% to be notified
• DSM Rate Revision
• Definition of ACE, Reserves in Grid Code
• Need for “gate closure” in scheduling
• Operationalizing “National Pool”
• New Products : VAR Support, Black Start
• New Participants : Pumped Storage Plants
• Moving to 5-minute scheduling and settlement
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