The Karnataka Electricity Regulatory Commission (KERC) has officially notified the Karnataka Electricity Regulatory Commission (Ancillary Services) Regulations, 2025 on July 15, 2025. These regulations aim to address the increasing complexity of the power sector caused by higher renewable energy integration, growing demand, and the challenges of grid management. The main objective is to strengthen grid reliability and operational efficiency through a structured ancillary services mechanism at the intra-State level. The services include Primary Reserve Ancillary Service (PRAS), Secondary Reserve Ancillary Service (SRAS), and Tertiary Reserve Ancillary Service (TRAS), along with any other services as may be specified.
The regulations apply to all intra-State entities, including those with energy storage systems and those capable of demand response. Ancillary Services are defined as essential to support grid operation, ensuring quality, reliability, and security. The State Load Despatch Centre (SLDC) is designated as the Nodal Agency for implementing these services. A significant focus is on SRAS, which will be activated to minimize deviations in the State’s control area and address transmission congestion.
Entities eligible to participate as SRAS Providers must have a bi-directional communication system with SLDC, be AGC-enabled, respond within 30 seconds, and have the capacity to sustain the response for 30 minutes. The minimum response capacity is fixed at 10 MW. The deployment of SRAS is based on Area Control Error (ACE), and it is dispatched via automated secondary control signals every four seconds.
Procurement of SRAS is to be carried out by the SLDC on both day-ahead and real-time bases. Providers are required to submit their energy charges or compensation charges in advance. Importantly, no commitment charge is allowed unless notified later by the Commission. Payment to SRAS Providers is determined based on energy or compensation charges applicable at the time of delivery, and providers must also pay back charges during SRAS-Down operations. No incentives are planned initially, though this may be reviewed later.
The performance of SRAS Providers will be monitored using SCADA data. Providers with performance below 20% for two consecutive days may be disqualified for a week. In case of emergencies or shortfall, generating stations with un-requisitioned surplus power may be called upon to provide SRAS.
Weekly accounting and settlement of SRAS will be carried out using interface meter data. The settlement will factor in both SRAS-Up and SRAS-Down operations, and all transactions will be routed through the State Deviation Settlement Mechanism Account (SDSMA). No retrospective adjustments will be made once the charges are declared and settled. No transmission charges or losses apply to SRAS transactions. The regulations also require the SLDC to submit a detailed operational procedure within three months for the Commission’s approval. This includes aspects such as data telemetry, ACE calculations, SRAS dispatch methods, and performance monitoring. The Commission retains the power to relax or modify provisions to address unforeseen difficulties or operational challenges.
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