CERC Issues Notification For Ancillary Services Market Regulations Allowing Energy Storage

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Energy Storage

Central Electricity Regulatory Commission has issued a notification drafting ancillary services market regulations allowing for energy storage and demand response resources to participate.

The notification issued explained the necessity of providing a regulatory mechanism for ancillary services “in the interest of reliability, safety and security of the grid”.

Energy storage and demand response, which are digitally controllable and dispatchable energy and power resources, can respond rapidly and accurately to the need to maintain grid frequency within close boundaries of the 50Hz at which it operates. Recognising this aspect, Primary Reserve, Secondary Reserve and Tertiary Reserve ancillary services will be created, as well as others that are within the scope of the Grid Code.

Comments and suggestions on the draft regulation from stakeholders and interested parties have been invited by CERC. The last date to submit them is  30th June 2021..

Primary Reserve is a function which is immediately triggered by a sudden change in frequency and should be controlled at individual generation asset level,hence the draft includes more details on procurement, assessment and compensation for Secondary and Tertiary Reserve, which are open to entities with energy storage or demand response resources connected to the transmission system at inter- or intra-state level.

A minimum of 1MW response block requirement is there for Secondary Reserve Ancillary Services opportunities, and resources need to either put power into the grid or draw power out within 30 seconds of receiving a grid signal. Resources must be adept at  providing their entire capacity obligation within 15 minutes and sustain for at least a further 30 minutes beyond that.

Finally, as far as Tertiary Reserve Ancillary Service (TRAS) participants are concerned, they need to be able to respond and provide frequency regulation within 15 minutes and sustain it for at least 60 minutes. They can be used to replenish secondary reserve resources that have been deployed continuously for 15 minutes for more than 100MW, as well as in response to other Grid Code-specified events.

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