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Ancillary services in the Indian power sector – A look at recent developments and prospects

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  • Kumar, T. Bharath
  • Singh, Anoop

Abstract

Reliable and secure operation of a power system depends on the ability of system operation to address system imbalances on account of demand-supply imbalances and that an account of change in availability of transmission network elements. The impact of a power plant or transmission line failures causes a short-term imbalance between generation and demand, and balance can be addressed by deploying flexible reserves and ancillary services. The system imbalances in the Indian power system operation are addressed through Deviation Settlement Mechanism, a commercial mechanism based on a frequency linked incentive/penalty structure. Implementation of reserve regulation ancillary services in India has further helped to address deviation in frequency, congestion, and to bring grid resilience. This paper discusses the development of ancillary services in India, alongside crucial developments in the power market. Given the ongoing developments in the Indian power market and international experiences, this paper suggests a road map for further development of the ancillary services market in the country. The Indian power system has also witnessed a significant growth of variable renewable energy resources. In the future, renewable resources are expected to provide full range ancillary services ensuring the least cost, supply security, and high availability of reserves. Deviations on account of uncertainty associated with renewable resource generation are also subject to Deviation Settlement Mechanism, although with lenient penalties.

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  • Kumar, T. Bharath & Singh, Anoop, 2021. "Ancillary services in the Indian power sector – A look at recent developments and prospects," Energy Policy, Elsevier, vol. 149(C).
    • Handle: RePEc:eee:enepol:v:149:y:2021:i:c:s030142152030731x
    DOI: 10.1016/j.enpol.2020.112020
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    2. Agrawal, Atul, 2022. "Real Time Market (RTM) at Indian power exchanges: Need, short term assessment and opportunities," Energy Policy, Elsevier, vol. 162(C).
    3. David P. Brown & Andrew Eckert & Douglas Silveira, 2023. "Strategic interaction between wholesale and ancillary service markets," Competition and Regulation in Network Industries, , vol. 24(4), pages 174-198, December.
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    5. Rashmita Saran & Bharath Supra & G. P. Girish & Sweta Singh, 2024. "Has Real Time Spot Electricity Market in India Impacted Day-Ahead Spot Electricity Market?," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 347-355, September.

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