Karnataka Strengthens Power Grid with New Ancillary Service Draft Regulations 2024

Posted On - 8 February, 2025 • By - King Stubb & Kasiva

The Karnataka Electricity Regulatory Commission (KERC) has issued draft regulations for ancillary services, a crucial step towards enhancing grid stability and reliability in the state. [1]These regulations, published on January 1, 2025, aim to address the growing complexities of the power sector, particularly the increasing integration of renewable energy sources, which can introduce significant variability and uncertainty into the grid.

Key Objectives:

  • Enhance Grid Stability: The primary focus is to maintain grid frequency and voltage stability, ensuring uninterrupted power supply to consumers. This is achieved by establishing robust mechanisms for procuring and deploying ancillary services, which are essential for balancing supply and demand and addressing unforeseen events like sudden load changes or generator outages.
  • Improve Operational Efficiency: The regulations aim to streamline the procurement and deployment processes, minimizing operational costs and maximizing the efficiency of grid operations. This includes establishing clear eligibility criteria for service providers, transparent procurement mechanisms, and efficient payment systems.
  • Foster Innovation: By encouraging the participation of various entities, including energy storage systems and demand response providers, the regulations aim to foster innovation and the development of new technologies that can contribute to grid stability and efficiency.
  • Ensure Fairness and Transparency: The regulations emphasize transparency and fairness in all aspects of the ancillary services market, including procurement, deployment, and payment. This ensures a level playing field for all participants and promotes fair competition.

Key Features of the Draft Regulations:

  • Focus on Secondary Reserve Ancillary Services (SRAS): The regulations place a significant emphasis on SRAS, which are crucial for quickly responding to sudden changes in grid frequency and maintaining system stability.
  • Eligibility Criteria: The regulations outline specific eligibility criteria for SRAS providers, including technical requirements such as communication capabilities, response times, and metering accuracy.
  • Procurement Mechanism: SRAS will be procured through a merit order-based system, with providers selected based on their declared energy charges or compensation charges.
  • Deployment and Operation: The State Load Dispatch Center (SLDC) will be responsible for activating and deploying SRAS based on real-time grid conditions and system requirements.
  • Performance Monitoring and Penalties: The performance of SRAS providers will be closely monitored, and penalties may be imposed for non-compliance or underperformance.
  • Stakeholder Consultation: The KERC has initiated a public consultation process, inviting stakeholders to provide feedback and suggestions on the draft regulations. This collaborative approach ensures that the final regulations reflect the needs and concerns of all stakeholders.

Significance of the Draft Regulations:

The KERC’s draft regulations on ancillary services represent a crucial step towards modernizing the state’s power grid and ensuring its long-term reliability and sustainability. By creating a robust framework for ancillary services, the regulations will:

  • Improve grid resilience: By enhancing the grid’s ability to withstand disturbances and maintain stability, the regulations will improve the overall reliability of power supply to consumers.
  • Facilitate the integration of renewable energy: By enabling the effective integration of variable renewable energy sources, the regulations will support the state’s transition to a cleaner and more sustainable energy future.
  • Drive innovation: By encouraging the participation of new technologies and service providers, the regulations will foster innovation in the power sector and drive the development of more efficient and cost-effective grid solutions.

Conclusion:

The KERC’s draft regulations on ancillary services mark a significant step towards a more robust, reliable, and efficient power grid in Karnataka. Through a combination of robust regulatory frameworks, innovative procurement mechanisms, and strong performance monitoring, these regulations will play a vital role in ensuring a secure and sustainable power supply for the state’s growing economy and population.

[1] https://kerc.karnataka.gov.in/uploads/58861735804100.pdf