1. Date: 11-04-2013
Ancillary Services and
Indian Power System
IPPAI conference on 10th
& 11th
April 2013…..

2. Confidential Slide 2
Transmission
Distribution
Generation
 All in one Utility
 Generation, Transmission and
Distribution toward objective of
power supply
 Cost (merit order), reliability,
security and quality, all
responsibility of the utility and
will be as per its efficiency

3. Confidential Slide 3
Transmission
Distribution
Generation
System
Operation
Supply
 Unbundled system
 Generation, Transmission
and Distribution
 System operation and
supply functions become
visible as distinct activity
 Service are transacted

4. Confidential Slide
Services are transacted…..
 What ?
 Basic services
 Ancillary services
 How ?
 Price
 Market
 Regulations
4
 Unbundled system - Reliability,
Security, Quality and ultimate
final cost to consumer get
determined from :
 Rules and regulations of the
game
 Market efficiency
 Behavior and efficiency of all
players not for reliability,
security, quality and cost of
supply but towards their own
business objective

5. Confidential Slide
Basic and Ancillary Services
 Basic Services:
 Generation, Transmission and Distribution toward
objective of power supply as per basic service
requirement
 Ancillary Services:
 Value added services towards supporting and
improving reliability, security and quality
5

6. Confidential Slide
Ancillary Services
 Real Power Balancing
 Operating Reserves
 Scheduling and dispatch
 Inter-area power flow control
 Reactive Power - Voltage Control
 Economic dispatch
 Transmission Security
 System Protection
 Black Start
6
 Real Power Balancing
 Reactive Power
 Voltage Control
 Scheduling and Dispatch
 Inter-area power flow control
 System Protection
 Energy Imbalance
 Frequency Control
 Black Start
 Reserve
 Transmission Security
 Economic dispatch
 Financial Trade Enforcement
 Losses
 ….
 ….
Indian Context
Literature :
FERC / CIGRE / Other Authors
Refer POSOCO June 2010 paper

7. Confidential Slide
Basic and Ancillary Services which we already have
7
Ancillary Services :
Compulsory Provision
• Transmission Security
• Scheduling and dispatch
• System Protection – SPS
• Primary Frequency Response – FGMO
clause 5.2 (f) of IEGC – has so far
remained un-achievable
Voluntary – Priced
• Real Power Balancing through loose
frequency control and UI pricing
• Reactive power support for voltage
control
• Inter-area power flow - Congestion
management only for scheduling
Voluntary cooperation – Un-priced
• Black Start
Basic Services:
• Generation
•Transmission
•Distribution – Supply
utility
•System Operation
•Power Market
•Operational coordination
•Maintenance coordination
•System Protection - basic
•Planning coordination
•Regulatory Mechanism
Indian Power System

8. Confidential Slide
Scheduling, Market and Real Power Balancing
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
36
34
32
30
28
26
24
22
Bilateral (Base load) contract
Bilateral (peak load) contract
Day Ahead Hour Ahead
Sell
BuyBuy
Sell
Forecasted
demand
Ancillary
Service
Intra Day
demand
Real-time
demand
Buy and Sell includes Scheduling and Re-scheduling from capacity contracts

9. Confidential Slide
Real Power Balancing
Intent of adherence to schedules for each time block is a
pre-requisite
And then the Real Power Balancing ancillaries to improve that
basic level of adherence viz.
 FGMO – primary control by thermal units
 Secondary Control from reserve Hydro/Gas Units
 Tertiary Control by stand-by reserve units
All the above including FGMO could be procured as a priced
service
9

10. Confidential Slide
Frequency linked UI tariff
vs
Ancillary Power Market
 Can the two co-exist ? Yes
 Should they co-exist ?
 Real power getting balanced through ancillary power, there may not
remain justification for frequency linked UI pricing
 Frequency linked UI pricing may inhibit ancillary market
 Can we phase out frequency linked UI in steps ?
10

11. Confidential Slide
Real Power Balancing
 Required for real power balancing, not frequency control
 Frequency variation is just an indicator of balancing error
 Also required for inter-area power flow control
 Inter-area power flow control more critical for system security
 Balancing has to come from un dispatched generation as well as
load management
 In moving towards scheduled operation regime, balancing power
from generators and that from load management both must de-link
from frequency and priced as per time block market discovered
values
– POSOCO proposal is only one sided
11

12. Confidential Slide
POSOCO proposal
 Establishing Ancillary power Market is a much felt necessity
But POSOCO proposal may need some basic change
 Frequency triggered procurement ??
 Risks:
 Procuring unwanted power
 Frequency shoot-ups
 Forcing utilities to pay for what they could not afford to buy
 May cause undesired and forced increase in UI
12

13. Confidential Slide
FGMO – why have we failed ?
 FGMO – primary control by thermal units
 Secondary Control from reserve Hydro/Gas Units
 Tertiary Control by stand-by reserve units
Unlike the normal sequence of primary to secondary to tertiary,
requirement of placing control mechanism in power system has to be the
other way round.
For a successful primary control, we must have secondary control
mechanism already in place and for successful secondary control we must
have tertiary control mechanism already in place
13

14. Confidential Slide
FGMO – why have we failed ?
 Primary Control – FGMO of
thermal units
 Secondary Control from
reserve Hydro/Gas Units
 Tertiary Control by stand-by
reserve units
14
PLACING
MECHAMISM
OPERATION
UCTE’s classification of frequency reserves
Taken from POSOCO Approach Paper of June 2010

15. Confidential Slide
Procurement of Ancillary Services
 Compulsory Provision
 through Rules and Regulations
 Voluntary Participation
 through Pricing and Market mechanism
 through Voluntary cooperation – un-priced
15

16. Confidential Slide
Transmission Security
 Inter-area power flow control
 Re-scheduling and based on system evaluated security
status
 Dynamic protection based on real time feeder loads, area
exchange deviations and frequency instead of present
schemes of only frequency based fixed feeder U/F and
df/dt load shedding
16

17. Thank you
Date: 11-04-2013