CERC Sets Stage For Large Batteries With Draft Ancillary Services Regulations

The Central Electricity Regulatory Commission (CERC) has drafted the Ancillary Services Regulations, 2021, whose express purpose is to ensure reliability, safety and security of the grid.

Ancillary Services in relation to power system operation, the document explains, means the service necessary to support the grid operation in maintaining power quality, reliability and security of the grid and includes four kinds: Primary Reserve Ancillary Service, Secondary Reserve Ancillary Service, Tertiary Reserve Ancillary Service, active power support for load following, reactive power support, black start and such other services as defined in the Grid Code.  We had covered the role of revenues from such services, for large sized battery storage projects viability, based on a UK case here.

The regulations specified in the draft aim to provide mechanisms for procurement, through administered as well as market-based mechanisms, deployment and payment of Ancillary Services for maintaining the grid frequency close to 50 Hz, and restoring the grid frequency within the allowable band as specified in the Grid Code and for relieving congestion in the transmission network, to ensure smooth operation of the power system, and safety and security of the grid.

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These regulations will be applicable to regional entities, including entities having energy storage resources and demand side resources qualified to provide Ancillary Services and other entities as provided in these regulations.

The draft also gives details regarding procurement, assessment, and compensation for SRAS and TRAS, which are open to entities with energy storage or demand response resources connected to the transmission system. Some key details are as follows:

A generating station or an entity having energy storage resource or demand side resource, connected to inter-State transmission system or intra-State transmission system, shall be eligible to provide Secondary Reserve Ancillary Service, as an SRAS Provider, if it

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(a) has bi-directional communication system with NLDC or RLDC, as per the requirements stipulated in the Detailed Procedure by the Nodal Agency;
(b) is AGC-enabled, in case of a generating station;
(c) can provide minimum response of 1 MW; etc.

A generating station or energy storage resource or demand side resource connected to inter-State transmission system or intra-State transmission system shall be eligible for participation as TRAS Provider, if

(a) it is capable of varying its active power output or drawl or consumption, as the case may be, on receipt of despatch instructions from the Nodal Agency; and
(b) it is capable of providing TRAS within 15 minutes and sustaining the service for at least next 60 minutes, etc.

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Read the complete details contained in the draft regulations here.

The commission has invited comments and suggestions on the draft regulation from stakeholders and interested parties, the deadline for which is June 30, 2021.