The Odisha Electricity Regulatory Commission (OERC) on May 20, 2026, issued the Draft Odisha Electricity Regulatory Commission (Ancillary Services) Regulations, 2026.
The following has been stated:
• The draft regulations designate the State Load Despatch Centre (SLDC) as the nodal agency responsible for implementation and apply to intra-state entities, including generating stations, energy storage systems, and entities capable of providing demand response services.
• The draft regulations classify ancillary services into Primary Reserve Ancillary Service (PRAS), Secondary Reserve Ancillary Service (SRAS), Tertiary Reserve Ancillary Service (TRAS), voltage control services, and black start services. The framework enables automatic generation control (AGC)-based balancing support, congestion management, and reserve maintenance within the Odisha grid.
• For SRAS participation, generating stations, energy storage resources, and demand response entities shall have bi-directional communication systems with SLDC, SCADA telemetry, AGC capability, and the ability to respond within 30 seconds and sustain support for at least 30 minutes. The minimum response requirement has been fixed at 1 MW.
• The regulations provide that SRAS will be activated when the Area Control Error (ACE) exceeds specified thresholds or when grid congestion and reserve replenishment requirements arise. SLDC may operate the system using tie-line bias control or flat tie-line control modes depending on grid conditions. Procurement of SRAS will initially be undertaken by the nodal agency, though the Commission may later introduce market-based procurement mechanisms.
• The regulations also prescribe detailed provisions for selection and dispatch of SRAS providers using a “Custom Participation Factor” based on ramping capability and cost factors. Automated secondary control signals will be transmitted every four seconds to participating entities, which must respond automatically without manual intervention.
• Payment mechanisms have been specified through the State Deviation and Ancillary Service Pool Account. SRAS providers will be compensated based on declared energy or compensation charges for upward reserve deployment, while providers delivering downward reserve will pay back corresponding amounts to the pool account. Incentives ranging from 10 to 50 paise per kWh have also been proposed based on performance levels, while poor performance below 20% for two consecutive days can lead to temporary disqualification.
• The regulations further provide a framework for Tertiary Reserve Ancillary Services (TRAS), allowing participation of generating stations, storage systems, and demand response entities connected to both intra-state and inter-state transmission systems.
The last date for submitting objections or suggestions is June 20, 2026.
[Notification no. - OERC/ENGG.- 01/2026/614]
