1. NLDC 1 Ancillary Services in Indian Context

2. NLDC 2 Outline Definition Drivers for Ancillary Services Ancillary Services in Indian Context

3. NLDC 3 Definition As per draft 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”

4. NLDC 4 Drivers Reliability and Security Deregulated Power Systems Changing Nature of Electricity Grid Services to be obtained from Service Providers Cannot be coupled with basic energy services Use of UI surplus amount as per UI regulations – March 2009

5. NLDC 5 Pillars of Market Design Sally Hunt – ‘ Making Competition Work in Electricity’

6. NLDC 6 Ancillary Services in Indian Context Proposed Ancillary Services in India  Frequency Control Ancillary Services (FCAS)  Network Control Ancillary Services (NCAS)  Power Flow Control Ancillary Services (PFCAS)  Voltage Control Ancillary Services (VCAS)  System Restart Ancillary Services (SRAS) Compensation through UI surplus fund Limited to Operational Expenditure

7. NLDC 7 Frequency Control Ancillary Services (FCAS) Mis-matches between supply and demand IEGC band – 49.2 to 50.3 Hz Wide fluctuations in frequency Primary Response : FGMO Secondary Response : Absent by Design Tertiary Response  Availability Based Tariff (ABT)  Use of Un-Requisitioned Surplus  Scheduled to the ‘POOL’  Merit order  Peaking Gas Stations  Pumped Storage Plants

8. Network Control Ancillary Services (NCAS) Power Flow Control Ancillary Services (PFCAS)  Control power-flow on interconnectors  Utilizing URS  Schedule to ‘POOL’  Based on both location and merit order Voltage Control Ancillary Services (VCAS)  Provision in IEGC for VAr drawl  Synchronous condenser operation  Friction and windage losses  Auxiliary consumption NLDC 8

9. System Restart Ancillary Services (SRAS) Black Start of Power Stations Provision for mock exercises Might be linked to a fraction of fixed cost recovery NLDC 9

10. 10 Thank you !! Email ID: vvsharma@powergridindia.com

11. NLDC 11 Ancillary Services – International Experience ServiceNGC Svenska KraftnatNEMMCONYISOIndia Scheduling and Dispatch Recognized and provided Not Recognized Recognized and provided System Operator is mandated in IEGC Frequency Response Primary Response Provided through balance service Bilateral Contracts Recognized and compensated Recognized and price based on market Mandated as per IEGC Secondary Response Balance ServiceAbsent by Design Tertiary Response Only manual load shedding is done Voltage Control Recognized and provided through Grid Code No payment scheme Recognized and paid to generators and synchronous compensators Recognized and paid to generators only Mandatory for ISGS. Commercial mechanism for states Operating Reserve Within purview of balance service Recognized and compensated Limited reserves available. Not treated as a service Black Start Capability Service Provided Provided through bilateral contract Recognized and compensated Mandatory as per IEGC

12. Definitions “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.”… Clause 30, order no.205 dated 13th December 2006, The Appellate Tribunal for Electricity “Ancillary services are those functions performed by the equipment and people that generate, control, transmit, and distribute electricity to support the basic services of generating capacity, energy supply, and power delivery.”….Electric Power Ancillary Service, Eric Hirst and Brendan Kirby “necessary to support the transmission of electric power from seller to purchaser given the obligations of control areas and transmitting utilities within those control areas to maintain reliable operations of the interconnected transmission system”….FERC NLDC 12