Date: 11-04-2013

Ancillary Services and Indian Power System

IPPAI conference on 10th & 11th April 2013…..

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

Confidential Slide 3

Transmission

Distribution

Generation

SystemOperation

Supply

Unbundled system Generation, Transmission

and Distribution System operation and

supply functions become visible as distinct activity

Service are transacted

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

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

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

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

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

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

Confidential Slide

Frequency linked UI tariffvs

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

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

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

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

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

PLACINGMECHAMISM

OPERATION

UCTE’s classification of frequency reservesTaken from POSOCO Approach Paper of June 2010

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

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

Thank youDate: 11-04-2013