Unlike traditional energy sources that provide a consistent and predictable output, renewable energy generation fluctuates based on weather conditions, posing a risk to grid stability.
- The electricity grid, thus, needs to be equipped with additional flexibility that will allow power generation to be ramped up or down based on demand.
- To this end, a separate market for grid-flexible resources, called the ancillary services market, will have to be set up.
- Such markets exist in all geographies where the share of renewable energy in the grid has breached the 15-20% mark (renewables make up roughly 10% of India’s energy portfolio at the moment).
- Ancillary services provide quick, real-time adjustments to balance supply and demand of power.
There are three kinds of ancillary services:
- Primary services respond to fluctuations in real-time (less than a second), which makes them the most relevant in addressing imbalances in renewables-heavy grids.
- Secondary services respond to fluctuations within 10-15 minutes. These comprise gas-based capacities.
- Tertiary services take about 20-30 minutes to respond, and comprise thermal power plants, including the coal-fired plants that remain in use in India.
