The Need for Regulatory & Policy Framework for Ancillary Services & Alternative Energy Options            in the Indian Po...
Ancillary Services for the Power Sector – IDefinition of Ancillary Services Ancillary Services are support services in the...
Ancillary Services for the Power Sector – IIGeneral classification of Ancillary Services: 1. Frequency Control Ancillary S...
Ancillary Services for the Power Sector - III2. Network Control             AncillaryServices (NCAS):   Power Flow Contro...
Issues – I : Stranded Generation Capacity  Some of the possible reasons why generation  capacity gets stranded:   Inadequ...
Issues – II : Variability of Renewable Power in                     the Grid               Harry Dhaul - Director General,...
Issues – III : Peaking Power Requirements    The provision of Ancillary Services can help resolve these issues            ...
Issues – IV: Issues to be resolved 1. Determining which ancillary services are needed 2. To what extent are ancillary serv...
Suggestions: Regulatory & Policy Framework  Examine the role of RLDCs and SLDCs and empower them to   take financial deci...
Suggestions–I: Price Pooling for affordability   Sl.        Grid        UI Rate   % of               Ancillary     Weighte...
Suggestions–II a: Promote Energy Storage                  Solutions  Inward drawl from the                                ...
Suggestions – II b: Regulatory & Policy FrameworkRequired to Incentivise Energy Storage Provide incentives for stored ener...
Suggestions–II c: Regulatory & Policy FrameworkRequired to Incentivise Energy Storage  Allow Dual Classification to stora...
Suggestions–III: The Way Ahead  Harnessing all possible renewable energy sources coupled with  energy storage to provide f...
The Proposed National Power Beltway – I :24x7 Plug & Play Grid              Harry Dhaul - Director General, IPPAI
The Proposed National Power Beltway – II :State Sub systems                     National Power                     Beltway...
Let the deliberations        begin!      Harry Dhaul - Director General, IPPAI
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The Need for Regulatory & Policy Framework for Ancillary Services & Alternative Energy Options in the Indian Power Sector

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The Need for Regulatory & Policy Framework for Ancillary Services & Alternative Energy Options in the Indian Power Sector

  1. 1. The Need for Regulatory & Policy Framework for Ancillary Services & Alternative Energy Options in the Indian Power Sector
  2. 2. Ancillary Services for the Power Sector – IDefinition of Ancillary Services Ancillary Services are support services in the power system or grid operation, which facilitate the basic function of Generation, Transmission & Distribution of electricity by ensuring reliable delivery of power at stable frequency and voltage, along with security of the grid. As also mentioned in Indian Electricity Grid Code, Ancillary Services are “The 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 power etc.” Harry Dhaul - Director General, IPPAI
  3. 3. Ancillary Services for the Power Sector – IIGeneral classification of Ancillary Services: 1. Frequency Control Ancillary Services (FCAS): Used to maintain the frequency within the desired range by balancing the load and generation in real time Provision of Ancillary services can contribute to grid stability and security Harry Dhaul - Director General, IPPAI
  4. 4. Ancillary Services for the Power Sector - III2. Network Control AncillaryServices (NCAS): Power Flow Control Ancillary Services (PFCAS): Used to control the flow on interconnectors within specified limits Voltage Control Ancillary Services (VCAS): Used to maintain the system voltage within in the desired range System Restart Ancillary Services (SRAS): Help restart the system post blackout situations Harry Dhaul - Director General, IPPAI
  5. 5. Issues – I : Stranded Generation Capacity Some of the possible reasons why generation capacity gets stranded:  Inadequate evacuation infrastructure  Change of Loading Methodology from thermal to surge impedance  Inability of DISCOMs to buy expensive power  Absence of funding to purchase capacities in need All possible generation capacities should be mainstreamed in order to reduce power cuts in the country. Harry Dhaul - Director General, IPPAI
  6. 6. Issues – II : Variability of Renewable Power in the Grid Harry Dhaul - Director General, IPPAI
  7. 7. Issues – III : Peaking Power Requirements The provision of Ancillary Services can help resolve these issues Harry Dhaul - Director General, IPPAI
  8. 8. Issues – IV: Issues to be resolved 1. Determining which ancillary services are needed 2. To what extent are ancillary services required to maintain system reliability 3. Whether or not these services can be provided competitively or if they can only be provided under regulation 4. Whether the supplier’s services can be metered and billed cost-effectively 5. If yes then who will pay for the ancillary services, to whom; and how will it be paid Harry Dhaul - Director General, IPPAI
  9. 9. Suggestions: Regulatory & Policy Framework  Examine the role of RLDCs and SLDCs and empower them to take financial decisions to meet grid stability requirements, such as dispatching more expensive power to meet higher demand for electricity  Put in place robust protocols for operational procedures, payment guarantees and timely commercial settlement between generators, host discoms, utilities, power traders, power exchanges and consumers. This includes an effective financial settlement mechanism for power from ancillary services: peaking power stations, spinning reserves and reactive power suppliers etc.  Harmonise central and state policies, regulations and their implementation Harry Dhaul - Director General, IPPAI
  10. 10. Suggestions–I: Price Pooling for affordability Sl. Grid UI Rate % of Ancillary Weighted No. Frequency (Rs/unit) overall Service Cost (in (Hz) (Rs/unit ) Paise) 1 50 3 60 180 2 49.8 5 30 150 3 49.65 7 6 16 96 4 49.55 9 4 *18 72 24 498 Pooled Price (ie UI + Ancillary) per unit 4.98 of which UI Billing is 2.40 and Ancillary charges are 2.58 * e.g. power from liquid fuelled stations Harry Dhaul - Director General, IPPAI
  11. 11. Suggestions–II a: Promote Energy Storage Solutions Inward drawl from the Outward injection into the Grid when power is grid or to tail end consumer when power is cheap through: expensive to:  Power Exchanges  Power Exchanges  Bilateral Agreements  DISCOMs  UI  HT Consumer sales  UI Power produced during off peak hours can be stored and released during peak hours. e.g. Wind Power Generation in Tamil Nadu is high during monsoon nights when power demand is lowest. Power generated and stored at night can be injected into the grid to meet peaking requirements. Harry Dhaul - Director General, IPPAI
  12. 12. Suggestions – II b: Regulatory & Policy FrameworkRequired to Incentivise Energy Storage Provide incentives for stored energy similar to benefits for RE such as:  Stored Energy Purchase Obligations (similar to RPOs)  Stored Energy Certificates (similar to RECs)  Preferential Tariff for Stored Energy equal to Solar Tariff Harry Dhaul - Director General, IPPAI
  13. 13. Suggestions–II c: Regulatory & Policy FrameworkRequired to Incentivise Energy Storage  Allow Dual Classification to storage provider as consumer and also as a generator  Allow such battery banks connectivity to higher voltage voltages for effective, efficient & timely commercial settlement e.g. at STU/CTU level  At Lower Levels e.g. 11 KV, Transmission losses, for both inward and outward flow of power should be exempted as every unit at tail end equals 2.5 units at generation end Harry Dhaul - Director General, IPPAI
  14. 14. Suggestions–III: The Way Ahead Harnessing all possible renewable energy sources coupled with energy storage to provide firm power when it is required most can help reduce:  the need for high cost liquid fuelled power on Supply Side  power cuts on the Demand Side  variability of RE power in the grid, thereby promoting grid stability To power the needs of a rapidly developing economy with uncontrolledgrowth of load and unplanned generation which often happens outside the dedicated transmission corridor, what we also need is a grid of the future Harry Dhaul - Director General, IPPAI
  15. 15. The Proposed National Power Beltway – I :24x7 Plug & Play Grid Harry Dhaul - Director General, IPPAI
  16. 16. The Proposed National Power Beltway – II :State Sub systems National Power Beltway, 765 KV Inter-connectivity Ancillary Load Energy Storage Load The State Generation Point Sub System, Load Load < 220 KV networks Ancillary Load Generation Point Harry Dhaul - Director General, IPPAI
  17. 17. Let the deliberations begin! Harry Dhaul - Director General, IPPAI

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