The Central Electricity Regulatory Commission (CERC) has proposed a mechanism which allows load dispatch centres to procure a part of power to be used for ‘ancillary services’ from the spot market through electricity exchanges. Ancillary services are used by power systems operators to enhance the reliability and security of the electricity grid and they also work towards restoring the grid frequency and relieving congestion in transmission networks
In its latest draft ancillary services regulations, CERC said that for tertiary reserve ancillary service, the national load dispatch centre will have to notify power exchanges the quantum of electricity requirement on a day-ahead basis before commencement of the day-ahead-market or the real-time-market. According to experts, the demand for tertiary ancillary services from the spot market will range between 1,500 mega-watt (MW) and 2,000 MW, and in extreme cases, it can rise to around 5,000 MW.
