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Grid-India Outlines Plan to Bring Solar, Storage, and Pumped Hydro into Grid Control and Reserve Services

Grid Controller of India Ltd. (Grid-India), through the National Load Despatch Centre (NLDC), has released a consultation paper proposing new technical and commercial mechanisms to integrate renewable energy generators, battery energy storage systems (BESS), pumped storage plants (PSPs), and hydro projects into Automatic Generation Control (AGC) and Secondary Reserve Ancillary Services (SRAS).

The consultation paper, prepared in line with directions from the Central Electricity Regulatory Commission (CERC), draws on insights gained from multiple pilot projects. Its objective is to strengthen grid frequency regulation by enabling newer and flexible energy resources to actively participate in real-time balancing.

According to Grid-India, solar power plants can technically support AGC operations, a capability demonstrated through a 180 MW pilot project at Devikot. Solar installations are considered particularly suitable for SRAS-Down, allowing output reduction during periods of high system frequency. While accurate Maximum Power Point Tracking (MPPT) signals are preferred, the paper notes that reliable estimations may also be acceptable.

To address commercial aspects, Grid-India has proposed three compensation approaches for solar participation, ranging from zero marginal cost settlement to partial tariff-linked compensation with refunds to the pool, with optional performance-based incentives. The paper recommends extending AGC and SRAS preparedness to all solar projects of 100 MW and above.

Battery energy storage systems have been identified as one of the most effective assets for AGC deployment due to their rapid response capability, high ramping speed, and bidirectional operation. This assessment is supported by a 20 MW/40 MWh pilot project. The consultation proposes uniform standards for state-of-charge management and cycle handling, while explicitly ruling out any mandatory cooling-off period between charging and discharging cycles.

For BESS compensation, two models are under consideration: a declared charge with mileage-based incentives, including premiums for superior performance, or a fixed weekly reserve charge. Grid-India has also emphasized value stacking, enabling storage assets to earn revenues from both SRAS participation and energy market operations.

The paper finds pumped storage plants to be technically compatible with AGC in both generation and pumping modes, although certain operational limitations persist. To encourage participation, Grid-India has proposed zero marginal cost settlement, exclusion of AGC-related energy from availability calculations, and eligibility for existing SRAS performance incentives. Additional measures include extending Beta factor incentives for primary frequency response in pumping mode and permitting AGC operation in technically safe overload conditions.

For conventional hydro projects, the consultation acknowledges that AGC-based down-regulation is commercially unattractive under current tariff structures. To unlock flexibility without financial disincentives, the paper recommends applying zero marginal cost treatment for hydro down-regulation under AGC.

The consultation also highlights the need for increased participation from intra-state generators, noting that approximately 6.8 GW is already active under regional SRAS. State Load Despatch Centres (SLDCs) have been encouraged to enable wider involvement, laying the groundwork for future state-level AGC implementation following EMS upgrades.

Grid-India has invited stakeholder feedback on the proposed framework, with comments to be submitted via email by January 3, 2026.