Amid Surge In Peak Demand, CERC Orders Extension Of RPAS Regulations To State Gencos 

The Central Electricity Regulatory Commission (CERC), in its latest suo-motu petition, ordered an extension of the provisions of the Reserve Regulation Ancillary Services (RPAS) to ‘willing’ state-level power generators. The CERC notified these Regulations on August 13, 2015, intending to ensure restoration of the grid frequency at desired levels. 

Under these regulations, the participating generating companies either increase or decrease the generation based on the instructions from the nodal agency. Such actions are usually done in selected cases like-extreme weather forecasts, generating unit or transmission line outages, coal supply blockages, and others. It ensures the desired frequency of the grid. 

It has been done to tackle the rising power-related challenges emanating from the rise of peak power demands. The CERC, in its order, said that in April 2023, the country witnessed a peak power demand of 215.9 Gigawatt (GW). However, according to the predictions of the Central Electricity Authority (CEA), the peak power demand in 2023-24 can reach 230 GW. PRAS Regulations are called the CERC (Ancillary Services Operations) Regulations 2015. 

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As per the provisions of the RPAS Regulations 2015, the regional generating stations whose tariffs are governed by the CERC are mandated to provide RPAS. The CERC order noted that the Grid-India informed the regulatory body that measures like an extension of RPAS to other generation sources would be needed to ensure a reliable grid operation with the anticipated rise of peak power during summers.

However, per the 2015 Regulations, only generating stations, which are regional entities whose tariff is determined or adopted by the Commission for their full capacity is, only eligible to provide RPAS. However, Section 16 of the Regulations also empowers the CERC to extend it to other generating stations. 

In its latest order, the Commission has ordered expanding the provision of the RPAS to other “willing” state-level generating companies and other generating stations selected through competitive bidding. 

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The order of CERC said, “…we are of the view that a direction be given within the meaning of Regulation 16 of the RRAS Regulations, 2015, in furtherance of the objective and purpose of these regulations. Accordingly, the Commission in exercise of the powers under Regulation 16 of the RRAS Regulations, 2015, hereby directs as under–,”

It added, “The Eligibility for participation for RRAS referred to in Regulation 5 of the RRAS Regulations, 2015 shall, in addition to the regional entity generating stations whose tariffs are determined or adopted by the Commission, also include the state generating stations whose tariffs are determined or adopted by the State Commission and willing to participate under RRAS; and the generating stations which are mandated by the Central Government to participate under RRAS and whose tariffs are discovered through a competitive bidding process,” the order said.