KERC Unveils Draft Ancillary Services Regulations to Enhance Grid Stability

The Karnataka Electricity Regulatory Commission (KERC) has introduced the Draft Karnataka Electricity Regulatory Commission (Ancillary Services) Regulations, 2024, aiming to address the growing complexities in the State's power sector.

As renewable energy integration increases, these regulations focus on creating a comprehensive framework for ancillary services, crucial for maintaining grid frequency, voltage stability, and system balance.

The KERC seeks to strengthen grid reliability and operational efficiency through a robust ancillary services framework, ensuring transparency, fairness, and accountability. The regulations also encourage technological innovation and a competitive ancillary services market, benefiting all stakeholders and enhancing grid performance.

A key component is the establishment of Secondary Reserve Ancillary Services (SRAS), designed to improve grid stability and manage congestion within the intra-state transmission network. The (Nodal Agency) State Load Despatch Centre (SLDC) will oversee the SRAS procurement process, estimating requirements and managing real-time adjustments based on grid conditions. Eligible SRAS providers must meet criteria, including bi-directional communication with the SLDC and quick response capabilities for grid events.

The procurement process will involve SRAS providers submitting standing consent for a minimum period of seven days, with a 48-hour notice for changes or withdrawals, except in cases of forced outages. Providers must declare their technical parameters, including installed capacity and ramp capabilities.

SRAS providers will be compensated based on declared energy or compensation charges for the energy dispatched in 15-minute intervals. Payments will be made based on real-time data provided to the SLDC, ensuring transparency. Importantly, no retrospective settlement of charges will be made.

Performance monitoring is another crucial aspect, with penalties for underperformance. If a provider's performance falls below 20 percent for two consecutive days, they will be disqualified for one week. Weekly accounting and settlement procedures will ensure accountability and transparency, with no transmission charges, losses, or deviation charges for SRAS providers.

The draft regulations also outline the development of detailed procedures for operationalising SRAS, including communication, telemetry, energy delivery measurement, and performance monitoring.

KERC invites stakeholders to submit objections, suggestions, and views on the proposed Draft Ancillary Services Regulations, 2024, within 30 days from their publication in the Official Gazette of Karnataka, to ensure broad consultation before final approval.