Regional Platform for Reserves Sharing
Essential to development of the vast renewable energy capacity, which is predominantly located in six to seven states in India, is the need to bring in liquidity into the intra-day energy market as a means of exchanging VRE as well as balancing energy more freely across the states at short notice. The grid modelling study for India by NREL also outlined the importance of regional coordination in integrating VRE in the Indian grid.
Range of possible interventions (market models) are under consideration to enhance the intra-day trading market in India. CERC is looking forward to evaluate these models of sharing reserves/coordination across the states in the intra-day timescales and to evolve a consensual way forward on adopting the best model for effectively enlarging the balancing area from individual states to regions or one national market. Currently, imbalances on intra-day basis are largely being managed within state control areas, resulting in reduced flexibility to accommodate VRE. State distribution entities do not actively tap into available reserves with the other states/regions even though both the day-ahead and intra-day market mechanisms are currently available under the power exchange(s) in India. Stakeholders’ interaction indicated that there are significant barriers for participation in the intra-day market, which include lack of collective market transactions in the intra-day market, lead-time to conclude trades, absence of flexible products, etc.
Pilot Scope & Outcome
Enhancing the efficiency of the intra-day market and increasing its volume and acceptance are critical for the RE integration and remain the focus of this pilot. After detailed discussions with CERC and POSOCO, GTG-RISE has been requested to provide support in evaluating a range of interventions (market models) to enhance intra-day market operations effectively and efficiently in India and evolving a consensual way forward. In addition to this, GTG-RISE will provide support in automating open access related access and approvals through the implementation of a distributed application accessible to all key stakeholders. The open access approval and registry system will be implemented with POSOCO as the nodal agency and is expected to significantly reduce lead times for intra-day transactions.
Stage 1: Conceptualization & Kick off
- Stakeholder alignment
- Development of prototype for benefits demonstration
- Data collection from states
- Preliminary discussion with NLDC on STOA processes
Stage 2: Benefits demonstration – NOAR
- Python based Modeling for benefits estimation of reserves sharing.
- Benefits demonstration to CERC, support in discussion papers / regulations
- Undertaking IT system study; Preparation of FRS, TRS and RFP for NOAR
Stage 3: TA to CERC on redesigning power market and POSOCO on implementation of NOAR
- Transitioning to MBED, RTM and auction based procurement of Ancillary Services
- Issuance of RfP and award
- Implementation Support and GO-LIVE of NOAR
The pilot is following a mechanism for reserves sharing through implementing the following tasks:
- Benefits demonstration of a national Px-based intra-day market: A Python-based optimization tool has been used to simulate and demonstrate these benefits. Data collection is at various stages from the eight states under study (Telangana, Andhra Pradesh, Madhya Pradesh, Maharashtra, Tamil Nadu, Karnataka, Chhattisgarh, and Gujarat). A first demo has already been presented to the CERC and the RISE team is currently working on expanding the scope of simulation by adding more constraints as input parameters and covering more states. Going further, RISE team will also assist CERC in overseeing the smooth implementation of the chosen market model for enhancing intra-day energy exchange enabling coordination among states. CERC issued a discussion paper on estimating the benefits of RTM
- Enabling a platform for day-ahead visibility of available state reserves (unrequisitioned surplus): The pilot will be conceiving and building consensus on the implementation of a day-ahead IT platform for unscheduled generation capacity in intra-state generating stations in the Southern/Western Region. This is expected to facilitate day-ahead bilateral contracting of energy between states in a region while also enabling visibility and analysis for individual states to participate in the intra-day energy market. This will be a similar platform to what exists currently with the National Load Despatch Center (NLDC) and Regional Load Despatch Center (RLDCs) for unrequisitioned surplus (URS) power allocation and monitoring. The outcome of this task shall provide the framework guidelines for regional coordination and adoption of commercial mechanisms for sharing of reserves. For the day-ahead IT platform, the stakeholders agree for RISE team to formulate the guidelines for implementation of this platform. They can also advise any changes to existing regulations and the scheduling and dispatch procedures to the Forum of Regulators (FOR) for due consideration at the level of CERC and the participating State Electricity Regulatory Commission’s (SERC)s. CERC issued a discussion paper on Market Based Economic Dispatch (MBED) on benefits and rationale for redesigning the electricity market on a day-ahead time horizon.
- Automating the process of Open Access approval and maintaining an online registry: This task will include establishing an integrated IT based system, accessible to all stakeholders (including open access participants, trade intermediaries and national/regional/state LDCs, and regional power committees). The system will have all the functionalities for maintaining a centralized repository of information related to open access and inter-state corridor availability, interim approvals and NOCs and a provision of payments portal linked to alternative modes of settlement (including linkages to clearing house-based settlement). The system will include provisions which will allow for future and proposed changes like transmission capacity allocation through e-bidding (will require a bidding engine), cross-border transactions, payments gateway for OA clearances, etc. The system will substantially reduce the response time for open access approvals and enable the intra-day market to operate much more flexibly with increased volumes of balancing energy trade across states at short notices. The team has studied the as-is process and delved into the possible future requirements that the National Open Access Registry (NOAR) has to accommodate by closely working with the POSOCO, CERC, NLDC and RLDCs. Based on their feedback, the team is revising the to-be requirements and process maps. The proposed changes in the current system would go as an input to the CERC for enabling amendments in the Open Access Regulation. Going further, GTR-RISE will be assisting POSOCO for selection of the appropriate implementation partner for the NOAR.