Ancillary services in Indian power sector-financing and bankability, scheduling mechanism, and accounting and settlement mechanism
Student name: Mr Amit Gupta
Guide: Dr Najmur Rahman
Year of completion: 2013
Host Organisation: Global Energy
Supervisor (Host Organisation): Mr Raghvendra “Raghav†Upadhyay
Abstract: Ancillary Services are considered as complimentary services in electrical industry that
interact with the basic services of production, transmission and distribution to facilitate
technical and commercial transactions. These services are not special services but are
provided by the same equipment used in support of the main services of electrical energy.
Despite having a considerable high cost, these services are important for bulk power
reliability as well as for the support of commercial transactions. In power markets, the
availability of sufficient ancillary services makes power systems reliable and transactions
deliverable.
The need for ancillary power has arisen since there are power shortages in the country but at
the same time, there are generation capacities with unutilised power. This underscores the
need for harnessing every possible generation capacity to reduce load shedding. This will
also bring in the desired reliability and security of operation of the grid.
Trading of ancillary power in the evening can bring the market much closer to real-time
demand as traders can assess the power demand more accurately and therefore taking the
DAM closer to delivery time to help participants bid more accurate quantities.
The ancillary power market has to be designed to handle real time power supply demand
imbalances of the users. If one has not planned beforehand or a requirement arises suddenly
closer to evening, they need not face load shedding. This mechanism aims at utilising power
supply which are bid at the exchanges during trading hours, but have not been cleared due to
high prices or any other reason for such eventualities.
This mechanism will also amalgamate renewable resources and address the problems of
renewable energy generation by addressing variation especially in wind generation.
