No.: NERPC/COM/CC_Min/2016/ Dated: 13 th January 2017

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No.: NERPC/COM/CC_Min/2016/3766-3812 Dated: 13 th January 2017 To 1. Director (Distribution), MePDCL, Lumjingshai, Short Round Road,Shillong 793 001 2. Director (Transmission), MePTCL, Lumjingshai, Short Round Road,Shillong 793 001 3. Director (Generation), MePGCL, Lumjingshai, Short Round Road,Shillong 793 001 4. Engineer-in-Chief (P&ED), Govt. of Mizoram, New Secretariat Complex, Khatla, Aizawl 796 001 5. Chief Engineer (WE Zone), Department of Power,Govt. of Arunachal Pradesh,Itanagar- 791 111 6. Chief Engineer (EE Zone), Department of Power,Govt. of Arunachal Pradesh,Itanagar- 791 111 7. MD, APDCL, Bijuli Bhawan, Paltan Bazar, Guwahati-781 001 8. MD, AEGCL, Bijuli Bhawan, Paltan Bazar,Guwahati-781 001 9. MD, APGCL, Bijuli Bhawan, Paltan Bazar,Guwahati-781 001 10. MD, MSPDCL, Secure Office Building Complex, 3 rd Floor, South Block, Near 2 nd MR Gate, Imphal 795 001 11. MD, MSPCL, Keishampat, Imphal 795 001 12. Chief Engineer (P&E), Department of Power, Govt. of Nagaland, Kohima 797 001 13. Director (Tech), TSECL, Banamalipur, Agartala 799 001 14. Director (Tech), TPGL, Banamalipur, Agartala 799 001 15. ED, NERTS, PGCIL, Dongtieh-Lower Nongrah, Lapalang, Shillong -793 006 16. GM (LD&C), PGCIL, Saudamini Plot No. 2, Sector 29, Gurgaon, Haryana 122 001 17. General Manager, NERLDC, Dongtieh-Lower Nongrah, Lapalang, Shillong -793 006 18. ED (Commercial), NEEPCO Ltd., Brookland Compound, Lower New Colony, Shillong-793003 19. ED (O&M), NEEPCO Ltd., Brookland Compound, Lower New Colony, Shillong-793003 20. ED (Commercial), NHPC, NHPC Office Complex, Sector-33, Faridabad, Haryana-121003 21. ED (O&M), NHPC, NHPC Office Complex, Sector-33, Faridabad, Haryana-121003 22. GM (Comml), NTPC Limited, ER-II HQ, Plot No. N-17/2, Third Floor, Naya Palli, Bhubaneswar-751012 23. Group GM, NTPC Limited, Bongaigaon Thermal Power Project, P.O. Salakati, Kokrajhar-783369 24. MD, OTPC, 6 th Floor, A Wing, IFCI Tower-61, Nehru Place, New Delhi-110019 25. Vice President, PTCIL, 2 nd Floor, NBCC Tower, 15, Bhikaji Cama Place, New Delhi - 110066 26. AGM (BD), NVVN, Core 5, 3 rd floor, Scope Complex, 7 Institutional Area, Lodhi Rd., N. Delhi-3 27. Member Secretary, ERPC, 14 Golf Club Road, Tollygunge, Kolkata-700033 28. Chief Engineer, GM Division, CEA, Sewa Bhawan, R.K. Puram, New Delhi 110066 Sub: Corrigendum to the minutes of the 31 st CC meeting held on 06/12/2016 at Hotel Radisson Plaza, Mahipalpur, Delhi. Sir, भ रत सरक र Government of India व त म लय Ministry of Power उ र प व य व त स म त North Eastern Regional Power Committee एन ई आर प स क ल स, ड ग प रम ओ, ल प ल ङ, श ल ग-७९३००६, म घ लय NERPC Complex, Dong Parmaw, Lapalang, Shillong - 793006, Meghalaya SPEED POST/FAX Ph : 0364-2534039 Fax: 0364-2534040 email: nerpc@ymail.com website: www.nerpc.nic.in With reference to the minutes of the 31 st CCM issued vide our letter of even no. dated 27/12/2016, it is to state that following corrigendum is issued for your kind information: In the first page, first para, The 31 st CC Meeting was hosted by ONGC Tripura Power Company Limited. The List of Participants in the 31 st CC Meeting is attached at Annexure I shall be replaced by The 31 st CC Meeting was hosted by ONGC Tripura Power Company Limited. The List of Participants in

the 31 st CC Meeting is attached at Annexure I. There was a ppt presentation by NERLDC on Reserve Regulation Ancillary Services (RRAS) in the evening of 5 th December, 2016. The detail of the presentation is attached at Annexure-II. The annexure-ii to the minutes is enclosed herewith. Encl.: As above भवद य / Yours faithfully, Copy to: लगख इ / B. Lyngkhoi) नद शक / Director/S.E (Comml) 1. SA to Member(GO&D), CEA, Sewa Bhawan, R.K. Puram, New Delhi 110066 2. CGM (Comml), APDCL, Bijuli Bhawan, Paltan Bazar, Guwahati-781 001 3. Head of SLDC, SLDC Complex, AEGCL, Kahilipara, Guwahati - 781019 4. SE (EM), MePDCL, Lumjingshai, Short Round Road, Shillong 793 001 5. Head of SLDC, MePTCL, Lumjingshai, Short Round Road,Shillong 793 001 6. Head of SLDC, Department of Power, Govt. of Arunachal Pradesh, Itanagar- 791 111 7. ED (Comml), MSPDCL, Secure Office Building Complex, 3 rd Floor, South Block, Near 2 nd MR Gate, Imphal 01 8. ED (Tech), MSPDCL, Secure Office Building Complex, 3 rd Floor, South Block, Near 2 nd MR Gate, Imphal 01 9. ED (Tech), MSPCL, Keishampat, Imphal 795 001 10. S.E. (Commercial), Department of Power, Govt. of Mizoram, Khatla, Aizawl 796 001 11. Head of SLDC, Department of Power, Govt. of Mizoram, Aizawl 796 001 12. A.C.E. (Gen & Trans), Department of Power, Govt. of Nagaland, Kohima 797 001 13. Head of SLDC, Department of Power, Dimapur, Nagaland 14. AGM (C&SO), TSECL, Agartala 799 001 15. Head of SLDC, TSECL, Agartala 799 001 16. General Manager, Loktak HEP, NHPC Limited, Vidyut Vihar, Komkeirap, P.O. Loktak, Manipur 795 124 17. GM (Comml), OTPC, 6 th Floor, A Wing, IFCI Tower-61, Nehru Place, New Delhi-110019 18. Head of the Plant, OTPC, Palatana, Kakraban, Gomati District, Tripura - 799116 19. AGM (Comml), NTPC Limited, 16 th Rupalim Path, Rukhmini Nagar, Guwahati-781022 नद शक / Director/S.E (Comml)

Ancillary Services Operations Experience in Indian Context S H E I K H S H A D R U D D I N N E R L D C, S H I L L O N G Ancillary Services Introduction Outline Reserve Regulation Ancillary Services (RRAS) Improved Frequency Profile Harnessing Undespatched Surplus Statistics of RRAS Implementation RRAS Providers Analysis of RRAS Despatch Instructions SCADA Visualization and Situational Awareness In-House developed Software Application RRAS Accounting & Settlement Key Learnings Challenges Way Forward 2 1

Pillars of Market Design Sally Hunt Making Competition Work in Electricity 3 Ancillary Services in Indian Power System As per IEGC, 2010 Ancillary services in power system (or grid) operation means services necessary to support the power system (or grid) operation in maintaining power quality, reliability and security of the grid, e.g active power support for load following, reactive power support, black start etc The Appellate Tribunal for Electricity, judgment in appeal no.202 (13 th December 2006) Ancillary services are those functions performed to support the basic services of generation, transmission, energy supply and power delivery. Ancillary services are required for the reliable operation of the power system. 4 2

Evolution of Electricity Market in India 2016: Ancillary Services 2015: 24 x 7 Market 2015: RE Framework 2014: Deviation Settlement 2012: Sub-Hourly Market 2011: Transmission Pricing (POC) 2010: Power Market, REC 2009: Grant of Connectivity, LTA and MTOA 2009: Trading License 2009: Congestion Management 2009: Imbalance (UI) 2008: Power Exchange 2004: Open Access Future Futures & Forward Market Capacity Market Flexibility, Ramping Products 5 Drivers for Ancillary Services in India Activities done for a common good Cannot be coupled with basic energy services 6 Reliability and Security ~ 160 GW Demand Distinguishing features of Indian Power System Increasing Maturity of Electricity Market Introduction of Adequacy & Reserves Tightened Frequency Control Introduction of Primary and Secondary Response 175 GW renewables by 2022 Restructured Power Systems Unbundling, Private Sector Participation Changing nature of demand Ramp of ~ 500 600 MW/min in Morning/Evening peaks Penetration of renewables Portfolio/ Risk management of Utilities Congestion Management Services Embedded through regulatory provisions Charges for Reactive Power 10 paise/kvarh, increment @ 0.5 paise / kvarh/year. 3

Annexure-II 05-12-2016 CERC Regulatory Framework for Reserve Regulation Ancillary Services (RRAS) 7 Role of Nodal Agency 8 4

Role of RRAS Provider and RPCs 9 Fixed charge, Variable charge and any other statutory charges for merit order dispatch Monthly basis Preparation of RRAS Providers Energy/ Deviation Accounts Nodal Agency Despatch & Withdrawal Instructions through RLDCs by Nodal Agency Incorporation of instructions in the Schedules of RRAS Providers and respective VAE by RLDCs RPC RRAS Provider Fixed charge, Variable charge and any other statutory charges Scheduling, Despatch & Withdrawal of RRAS 10 Scheduling Quantum of generation directly incorporated in the schedule of RRAS providers. Regulation Up Service Power scheduled from the generating station to the VAE Regulation Down Service Power scheduled to the generating station from the VAE Energy despatched under RRAS shall be deemed as delivered ex-bus. Despatch RRAS Generation scheduled to the VAE in any one or more Regional Grids RRAS deemed to be triggered for Time period specified by the Nodal Agency Schedules of the RRAS Provider revised by the quantum scheduled by the Nodal Agency Deviation in schedule of RRAS Providers beyond the revised schedule as per CERC DSM Regulations Withdrawal Nodal Agency direct the RRAS Provider to withdraw from the time block Satisfied that the circumstances leading to triggering of RRAS Services no longer exist 5

RRAS Energy Accounting RRAS Energy Accounting & Settlement 11 Done by RPC on weekly basis along with DSM Account Based on interface meters data and schedule of RRAS Providers Separate statement maintained along with Regional Deviation Settlement Account for RRAS RRAS Energy Settlement Under separate account head of RRAS from Regional DSM Pool Account Regulation Up RRAS provider paid at their fixed & variable charges with markup Regulation Down RRAS provider shall pay 75 % of variable charges to Pool Fund No retrospective settlement Any deviation settled as per CERC DSM Regulations, 2014 Penalties for sustained failure to provide RRAS and violation of directions of RLDC Frequency Profile 12 Frequency Fluctuations reduced to below 0.4 Hz Further improvement Primary & Secondary Control FVI consistently hovering around 0.03 6

Frequency Profile: 21st - 24th July, 2016 13 Sustained period of improved frequency profile Date FVI 21st July-2016 0.022 22nd July-2016 0.026 23rd July-2016 0.03 24th July-2016 0.028 Key to Ancillary Services - Undespatched Surplus in ISGS 14 URS ~ 12,000 MW URS ~ 2,000 MW 7

Annexure-II 05-12-2016 Statistics of RRAS Implementation Lowest Variable Cost ~ Rs. 1.29 / Unit (CGPL WR) All Regions implemented RRAS Up & Down Instructions Highest Variable Cost ~ Rs. 8.50 / Unit (Auraiya LF NR) RRAS Providers: 56 Nos. RRAS Despatch : 27 Time-blocks / day (Avg.) Highest RRAS Up in a day : 3273 MW All RRAS Providers have furnished information and participated All RPCs are issuing RRAS Accounts on weekly basis Capacity under RRAS: 52 GW Avg. Daily Number of RRAS Instructions : 05 to 06 Nos. Highest RRAS Down in a day: 1946 MW Energy Despatched: Up 6 MU / day Down 1 MU / day 15 List of RRAS Providers (w.e.f 16.09.2016) Sl no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RRAS Provider CGPL (4150,129.24) SIPAT -I (1980,135.8) SIPAT-II (1000,139.8) Korba( I & II)(2100,151.4) AGTPP(130,158) Sasan (3960,160.5) Singrauli (2000,160.7) Talcher - II (2000,163.2) Talcher - I (1000,164.6) Rihand - I (1000,165.5) AGBPP(291,167.2) Rihand - III (1000,167.4) Vindhyachal-III (1000,172) Vindhyachal-II (1000,174.1) Vindhyachal-V (500,174.1) Vindhyachal-IV (1000,174.9) Rihand - II (1000,176.2) Vindhyachal-I(1260,184.1) NSPCL(500,190.3) RGPPLGF(663,191) Ramagundam -III(500,209.1) Ramagundam I&II(2100,212.4) Vallur(1500,213.6) Gandhar GF(657.39,217.6) KawasGF(656,220.7) Kahalgaon -II (1500,233.5) Tuticorin(1000,233.9) Mouda-I(1000,241.3) Varible cost (Paise/kWh) 129.24 135.8 139.8 151.4 158 160.5 160.7 163.2 164.6 165.5 167.2 167.4 172 174.1 174.1 174.9 176.2 184.1 190.3 191 209.1 212.4 213.6 217.6 220.7 233.5 233.9 241.3 Sl no 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 RRAS Provider NLC-IIExp(500,243.3) NLC- I Exp(420,245.1) Gandhar NAPM(657.39,246.2) Kahalgaon-I(840,246.4) Kawas NAPM(656,247.4) FarakkaI & II(1600,259.6) NLC TPS - I(630,259.9) NLC TPS - II(840,259.5) Simhadri -II(1000,260.1) Unchahar- II(420,267.6) Unchahar- III(210,267.6) Unchahar- I(420,267.7) Barh TPS(1320,278.5) Anta GF(419,278.9) Dadri GF(830,280.1) Dadri- II(980,306.2) Auraiya GF(663,323.2) Dadri - I(840,326.5) BGTPP(250,342.3) Jhajjar(1500,349) Anta RF(419,448.8) Dadri RF(829,627.4) Auraiya RF(663,670.4) Auraiya LF(663,730.6) Dadri LF(830,759.8) Anta LF(419,812.3) Anta LF(419,812.3) Auraiya LF(663,850.8) Varible cost (Paise/kWh) 243.3 245.1 246.2 246.4 247.4 259.6 259.9 259.9 260.1 267.6 267.6 267.7 278.5 278.9 280.1 306.2 323.2 326.5 342.3 349 448.8 627.4 670.4 730.6 759.8 812.3 812.3 850.8 8

Block-wise RRAS Despatch 17 Region-wise RRAS Up Despatch 18 9

Region-wise RRAS Down Despatch 19 NRPC RRAS Accounts issued by RPCs 20 NERPC ERPC SRPC WRPC 10

Information Dissemination & Transparency Information on Nodal Agency (NLDC) Website 1.RRAS Instruction summary- http://www.nldc.in/ancillarymsgdata.aspx?fdt=26-07- 2016&tdt=26-07-2016 2. http://www.nldc.in/ancillaryservices.aspx 3.Monthly report- http://www.nldc.in/ancillaryreports.aspx AS3 Format uploaded by RPCs ERPC- http://www.erpc.gov.in/home/commercial_p/anciliary_services NRPC- http://www.nrpc.gov.in/comm/ancillaryservices.html NERPC- http://www.nerpc.nic.in/ancillary%20service.php SRPC- http://www.srpc.kar.nic.in/html/all_uploads.html WRPC- http://www.wrpc.gov.in/commercial_rras_dat.asp RRAS Accounts uploaded by RPCs ERPC- http://www.erpc.gov.in/home/commercial_p/ui_and_deviation_accts NRPC- http://www.nrpc.gov.in/comm/rras.html NERPC- http://www.nerpc.nic.in/devreport.php SRPC - http://www.srpc.kar.nic.in/html/all_uploads.html WRPC- http://www.wrpc.gov.in/commercial_rras_chrg.asp 21 Key Learnings Layer of Centralized Ancillary Despatch over Decentralized Layer of Scheduling Process Availability of Variable charges for first time in public domain Better Despatch Decisions Changing Merit Order month on month Improvement in Frequency Profile Ramp Management - Evening Peak / Morning Peak Congestion Management Helps Management of Low Probability, High Impact Events Grid Resilience Handling impact of extreme weather conditions on the grid Reliability Support Benefits to stakeholders Generators & State Utilities Freedom and Choice available to states retained 22 11

Challenges Minimum quantum of RRAS Up and Down Instruction Say 10 MW & above Direct Communication of Instructions to RRAS Providers Via respective RLDCs Area Control Error (ACE) concept needs to be implemented Overlap of scheduling process and RRAS Despatch Undespatched Surplus keeps changing Philosophy of requisitioning of power by states Accuracy of forecasts Accounting & Settlement Pool Deficit in One Region Need to compensate from other regional pools Monthly adjustment of Fixed Charges instead of weekly 23 Exclusion of RRAS Generators Utilizing gas under e-bid mechanism Regulation of power supply Quantum of Reserves available Challenges Undespatched Surplus not enough at times Support for Technical Minimum Hot Spinning Reserves Quantum necessary to maintain the technical minimum generation level scheduled under RRAS. Refund of fixed charges Common methodology 24 12

Highlights of Amended Ancillary Procedure issued by CERC 25 1.3 For those generating stations which are regulating power supply to beneficiaries for non-payment of dues under the CERC (Regulation of Power Supply) Regulations shall be considered to be despatched under RRAS. The revenue received on this account except markup shall be adjusted as per CERC (Regulation of Power Supply) Regulations. Highlights of Amended Ancillary Procedure issued by CERC 26 8.7 In order to avoid too many stations getting a very small quantum of dispatch under RRAS, the stations having less than 10 MW (5 MW in North-eastern Region) of undespatched surplus shall be excluded from the merit order stack while dispatching RRAS. 13

Highlights of Amended Ancillary Procedure issued by CERC 27 12.4 Deviation charges shall be worked out by RPCs strictly in accordance with the CERC (Deviation Settlement Mechanism and related matters) Regulations, 2014. The deviation charges for each entity shall be accounted without any adjustment for Payable = Receivable Way Forward 28 Load Forecasting.Format AS4 to be submitted by all states Replication of Ancillary Services framework at state level Urgent need for National Pool account Need for Primary and Secondary Frequency control 14

29 Thank You!! 15