CERC considers ancillary power market as alternate to UI mechanism

In a bid to introduce a mechanism alternate to Unscheduled Interchange (UI) to handle real time active power imbalances in the grid, the CERC has proposed a market based mechanism that will utilize the uncleared bidded-out power offered during trading hours. This ancillary power market would be introduced as a follow on to the evening market.

As against UI, which is a part of the availibility based tariff regulated by the CERC, under the proposed new regime, uncleared supply bids of both power exchanges will be aggregated and stacked according to price and would be available to the system operator as ancillary power.

Generators would then be called to supply power, at a pre-defined notice period, as required to balance out the grid, on an economic merit order principle, till the real time demand shortfall is bridged. All generators called on by the operator will be paid a price equal to that paid to the costliest generator that was called in for each time block. These amounts paid by the system operator will be recovered from all grid connected entities that deviate from their schedule.