Module3: Ancillary services are an indispensable part of the electricity industry.

One of the objectives of Indian

Electricity Grid Code (IEGC) is the facilitation for functioning of power markets and ancillary services and according to
IEGC, operation of Ancillary Services is an exclusive function of Regional Load Dispatch Centres (RLDC). Also
regulations of Central Electricity Regulatory Commission (CERC) provide for utilisation of the amount left in the
Unscheduled Interchanges (UI) pool account fund towards ancillary services. Types of Ancillary Services Basically there
are three types of Ancillary Services, viz. Frequency support ancillary services(FSAS),Voltage or Reactive power support
ancillary services(VCAS)and Black start support services(BSAS).FSAS are required to support frequency in the grid,
when the frequency in the grid falls below 0.05 Hz below the lower operating frequency range. VCAS are used to
maintain the voltage level at various points in the grid using mobile reactors or capacitors. BSAS are used in blackouts to
restart the grid. Frequency support Ancillary Services (FSAS): Frequency support Ancillary services as the name
suggests are required to support frequency in the grid, when the frequency in the grid fall below 0.05 Hz below the lower
operating frequency range1 (49.7 Hz) as specified in the IEGC for two consecutive time-blocks (one time-block is of 15
minutes), the nodal agency (RLDCs) will give instructions to the FSAS provider to despatch in the third time block so that
the frequency can be controlled. 1. Unstable grid. 2. To utilise the surplus capacity available. To facilitate renewable
integration by reducing impact of their variation. Mechanism:1. FSAS would be the service offered through bids by a
generating station. 2. The bids would be through Power Exchanges & a separate product could be constituted for this. 3.
The upper limit of UI rate to be the ceiling price for the scheduled bids. Bidding & Price discovery: 1. The buyers to
submit time-block-wise bid quantum & price along with the location. 2. Bids to be placed for standard time blocks of 2
hours & to be stacked up on merit-order basis. 3. The bids would be invited on a day ahead basis considered for despatch
next day. Criteria’s & conditions 1. All the sellers & regional entities which part of the scheduling & deviation settlement
mechanism for real & reactive power with voice & data telemetry facilities to be eligible to participate. 2. No Objection
certificate issued by the concerned SLDC/RLDC. 1. If the frequency remains 0.05 Hz below the lower operating frequency
for two consecutive time-blocks, Dispatch in real-time. FSAS provider to despatch in third time block. 2. If the frequency
remains at 50.0 Hz for two consecutive time blocks, FSAS to be withdrawn. Accounting & Settlement:1. The power
despatched under FSAS to be incorporated into the schedule of the overdrawing entities by the respective LDC. 2. FSAS
would be given a despatch certainty of 8 time blocks. 3. The energy despatched would be deemed to be delivered at the
Regional periphery. Voltage Control Ancillary Services (VCAS) The Central Electricity Authority (CEA) and Central
Transmission Utility (CTU) are entrusted with the responsibility of transmission system planning under the provisions of
Electricity Act, 2003. The CTU fine tunes the plans prepared by the CEA over a shorter period in coordination with CEA.
CEA and CTU use system studies to anticipate generators and load at various points in the grid. Reactive power
requirements may change: 1) Due to variations between the anticipated and the actual for generation and load. 2) As
more and more elements get added to the grid. To maintain the voltage level, capacitor and/or reactor at various nodes
need to be changed. Provision of reactive power could be allowed under reactive power support ancillary services which
will result in a reduction of cost. The mobile reactors or capacitors would be a big advantage which will be used by the
system operator by bidding through the power exchange when there is a critically low voltage in the grid at one or more
interconnection points. Execution of VCAS Price bids are submitted in the power exchanges for providing VCAS on
nodal basis. Nodal agency preparing a combined node-wise stack from the stack of node-wise bids for VCAS furnished by
the Power exchanges Payment to be made on the actual node-wise reactive support subject to the maximum ceiling rate of
reactive energy The providers of VCAS to be paid The mobile VCAS may be provided by the Government owned
transmission companies Black Start Ancillary Services (BSAS) & Execution Central Electricity Authority Regulations
mandate hydro generating stations for providing black start facility. Incentives may be provided to all flexible generators
who provide black start facility when such services are sought by the system operator.1)Generators capable of providing
start up power when instructed by the load despatchers to mandatorily provide the Black Start Services 2)Nodal agency
to be paid BSAS when the same is required.3) On the day of providing BSAS generators to be paid for one day capacity
charges as determined by the Commission 4)The energy charges to be paid at twice the energy charges determined by the
Commission for the volume of energy supplied during the restoration process. POWER LOAD MANAGEMENT
SUPPLY AND DEMAND Load management does not aim to decrease the overall electricity consumption, rather
approaches (or replies to) the consumption pattern. It could be applied both on energy demand and on supply sides:
Supply-side Load Management This management is defined as the measure, which is taken at the supply side to meet the
demand. The concept has been very popular in the seventies society demanded more power, the power of the twentieth
century. If the companies would simply find a way to supply users even by building more generation facilities. This was
the essence of the concept. Demand side management This Side o f Power Load Management describes the planning and
implementation of activities designed to influence customers in such a way that the shape of the power load curve of the
utility can be modified to produce power in an optimal way. Peak clipping and load shifting from p to off peak period’s
techniques are used to achieve these purposes. Demand side load management includes not only technical or economic but
social measures as well, since it is directly related to the behavioural issues.
Time of day models for planning Time of day modelling procedures integrated into the four-step travel demand modeling
process offer a more accurate and robust mechanism for obtaining time- of-day based estimates of travel demand and link
volumes. These procedures account for differences across trip purposes, modes, and origin-destination pairs. Some of the
issues that motivate the modelling of travel demand by time of day include, but are not limited to the following: • Design
hour traffic volumes for roadway design and level of service analysis • Transit analysis • Vehicular emissions and air
quality analysis • Assessing impact of congestion management programs • Evaluating travel demand management
strategies • Evaluating variable (time-of-day based) pricing policies • Analysis of peak spreading (time of day of travel
choices) • Analysis of intelligent transportation systems. Advantages to Demand Side Management 1. Better usage of
existing generating and distribution infrastructure. 2. Less efficient/environmentally unfriendly generating capacity can
be decommissioned. 3. Load can be matched to variable renewable energy availability. 4. Lower generating and
transmission costs. 5. Lower transmission and distribution losses. 6. Reduction in “spinning reserve” costs. 7. Less
intrusive load shedding. 8. More consumer growth capacity. 9. Better maintenance opportunities. 10. More availability
(less black-outs). The aims of the DSM are: • To introduce the concept of demand-side management for residential,
commercial and industrial energy users. • To give an overview of the different types of demand-side measures. • To show
how housekeeping and preventative maintenance in commerce and industry can be used to reduce energy demand. • To
describe energy auditing and routine data collection and monitoring, and to indicate their benefits. • To outline
information dissemination on demand-side management. • To provide an overview of the major implementation
challenges for DSM Programmes. Different techniques of DSM • Night-time heating with load switching. • Direct load
control: remotely controllable switch that can turn power to a load or appliance on or off. • Load limiters: limit the power
that can be taken by individual consumers. • Commercial/industrial programs: i.e. load-interruptible programs. •
Frequency regulation: dealing with fluctuation in frequency. • Time-of-use pricing: reflect the production and investment
cost structure where rates are higher (lower) during peak (off-peak) periods. • Demand bidding: customer reduces the
consumption of electricity at a certain predetermined price. • Smart metering: tracking amount of electricity using to
manage costs and consumption. Multi-utility power exchange model Multi-utility relates to companies offering a wide
range of services and/or products. In the business market, this type of service provision usually relates to energy,
environmental services, waste issues, infrastructure and/or telecom services. In the consumer market, it often concerns a
combined offering of services in the field of energy and digital products and services (telephony, internet and television).
Providers like these are also referred to as multi-service providers. So it often concerns services and products in relation
to public utilities. Multi-utility has a relation with cross-selling, offering complementary products and services. In a
multiple (multi-utility or multi-country) integrated system setting, each integrated system “speaks” with its neighbor in
terms of spot prices at their common borders; they buy or sell energy at the spot price of the specific instant and location.
The resulting operating point is the same as the one achieved under a fully centralized dispatch. When dispatching the
utilities, the control centre associated to each system must not discriminate between its own generators’ power and power
offered by the neighbouring systems through tie-lines, except for economic reasons. A multi-utility setting consisting of
three coordinated areas is shown in Fig. 1. Each regional ISO operates its own power system and interacts with the RSC.
When power exchanges are to be scheduled, the RSC starts an iterative procedure in which the utilities send tie-line
power-flow information to the RSC.

Time of day pricing: Time of day pricing is actually a special case of marginal cost pricing. Since marginal cost theory
suggests that prices should be equal to marginal cost s, and marginal costs vary from hour to hour, the price of electricity
should logically vary from hour to hour. The efficiency advantages of such a pricing system are readily apparent. The
equity advantages of time- of – day pricing are also apparent. To illustrate, there are two customers who are the same in
every way except for their consumption patterns. The first customer only uses electricity l ate at night when the marginal
costs of production are very low, like 1 cent per KWH; the second customer only uses electricity at the peak usage hours
of the day when the marginal costs of production are very high, like 10 cents per KWH. Given their usage, it is hardly fair
to charge them same price. Under a time- of -day pricing system, this inequity can be corrected because the nocturnal
user is charged less than the peak- hour consumer.