The Uttarakhand Electricity Regulatory Commission (UERC) has released the draft UERC (Ancillary Services) Regulations, 2026, with the objective of strengthening the safety, reliability, and security of the state’s electricity grid. Issued in June 2026, the proposed regulations aim to maintain grid frequency close to the standard 50 Hz, reduce transmission congestion, and ensure a balanced power system through both administered and market-based procurement mechanisms. The draft regulations will apply to all intra-state entities, including energy storage facilities and demand response resources capable of supporting grid operations.
The proposed framework introduces three categories of ancillary services: Primary Reserve Ancillary Service (PRAS), Secondary Reserve Ancillary Service (SRAS), and Tertiary Reserve Ancillary Service (TRAS). Each category has a specific role in maintaining grid stability. PRAS serves as the first line of defense during sudden frequency fluctuations by automatically responding through the governor mechanism of generating units. SRAS provides automated balancing support through secondary control signals issued by the State Load Despatch Centre (SLDC), while TRAS offers spinning and non-spinning reserve capacity that can be dispatched based on operational requirements.
The regulations specify technical requirements for entities seeking to participate as SRAS providers. Eligible participants must have a bi-directional communication system connected with the SLDC, Automatic Generation Control (AGC) capability for generating stations, and the ability to provide a minimum response of 1 MW. They must also be capable of delivering their full committed capacity within 15 minutes of receiving a dispatch instruction.
Under the proposed framework, the SLDC will continuously monitor the state’s Area Control Error (ACE) and activate SRAS whenever the deviation exceeds ±10 MW. The regulations also outline the financial settlement mechanism for SRAS providers. Participants delivering additional power under SRAS-Up will receive compensation, while those reducing generation under SRAS-Down will make payments through the regional deviation pool account. A performance-based incentive mechanism has also been included, where payments will depend on the accuracy of service delivery. However, providers whose performance remains below 20 percent for two consecutive days may face a temporary disqualification of one week.
For longer-duration reserve requirements, the regulations propose procurement of TRAS through competitive bidding on power exchanges using Day Ahead and Real Time Ancillary Service Markets. The price for TRAS-Up services will be determined through a Uniform Market Clearing Price mechanism, while TRAS-Down services will follow a pay-as-bid model. In addition, TRAS-Up providers whose capacity is cleared in the market but not dispatched will be eligible to receive commitment charges of up to 20 paise per kWh.
The draft regulations also empower the SLDC to treat generating stations without existing state contracts as available for ancillary support during emergencies or capacity shortages. To encourage wider participation, the commission has proposed that no transmission charges, transmission losses, or transmission deviation charges will apply to SRAS and TRAS operations. After the regulations are officially notified, the SLDC will prepare detailed operational procedures within three months, following stakeholder consultations, and submit them to the commission for approval.
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