OERC Unveils Draft Ancillary Services Regulations 2026 to Strengthen Odisha Grid, Enable Energy Storage

The Odisha Electricity Regulatory Commission (OERC) has released the draft Odisha Electricity Regulatory Commission (Ancillary Services) Regulations, 2026, proposing a structured framework for procurement, deployment and compensation of ancillary services aimed at ensuring reliable and secure operation of the state's power system.

The draft regulations come at a time when Odisha is witnessing increasing renewable energy integration, requiring greater grid flexibility and faster balancing resources. The proposed framework seeks to maintain grid frequency close to the prescribed 50 Hz level, reduce deviations in power supply and demand, and address transmission congestion across the network.

Under the draft regulations, ancillary services have been classified into three categories, Primary Reserve Ancillary Service (PRAS), Secondary Reserve Ancillary Service (SRAS), and Tertiary Reserve Ancillary Service (TRAS). In addition, provisions have been included for critical grid support functions such as voltage control services and black-start capability, which are essential for restoring the power system following major outages.

A key feature of the proposal is the inclusion of Energy Storage Systems (ESS) and demand response resources alongside conventional generating stations as eligible providers of SRAS and TRAS. This move is expected to encourage wider adoption of battery storage technologies and other flexible resources capable of responding rapidly to changing grid conditions.

According to the draft framework, deployment of SRAS will be carried out through automated control signals issued by the State Load Despatch Centre (SLDC), enabling real-time balancing of the power system. TRAS, meanwhile, will be procured through Day-Ahead and Real-Time Ancillary Service Markets, allowing operators to secure reserve capacity based on evolving system requirements.

The regulations also establish a payment mechanism for ancillary service providers. Compensation will be linked to reserve deployment, energy supplied and performance parameters, with incentives proposed for resources that demonstrate higher operational efficiency and reliability.

OERC has invited comments and suggestions from stakeholders on the draft regulations before finalising the framework and notifying it in the Official Gazette. Industry observers believe the regulations could play a significant role in improving grid resilience, supporting renewable energy growth and accelerating the integration of energy storage technologies into Odisha's power sector.