Intern at ReNew, one of India’s largest renewable energy Independent Power Producers in terms of
total energy generation capacity, with wind, solar and hydro assets.
Evaluating the Future of Ancillary Services in India – Opportunities, Gaps & Strategic Implications
Ask:
To assess the current state and future trajectory of ancillary services in India’s power market, and
evaluate what this means for independent power producers (IPPs) like ReNew – both in terms of risk
and opportunity.
Background:
India’s power system is evolving rapidly with increasing renewable penetration, decentralised
generation, and variability in demand-supply. This is making ancillary services (AS) like frequency
regulation, voltage support, reserves, ramping, and black-start services increasingly critical.
In 2022, India formally launched a market-based ancillary services mechanism, starting with RRAS
(secondary reserves). However, it is still in early stages and evolving fast.
Globally, IPPs and flexible assets like battery storage, hydro, etc., are monetising ancillary services
through structured market products. India is expected to follow suit with more market products,
higher pricing transparency, and technology-specific mechanisms.
Key Focus Areas for the Analysis:
1. Landscape of Ancillary Services in India (Current State)
• What services are presently operational (RRAS, FRAS, etc.)?
• Which entities are allowed to participate and how?
• What price signals are available? Any recent trends in revenues?
• Role of POSOCO / NLDC / SLDCs in dispatching and settling AS
2. Evolution of Policy & Regulatory Framework
• Key CERC / POSOCO orders governing ancillary services
• Market-based AS (MBAS) mechanism – rollout timeline, design, clearing strategy
• Any upcoming changes or consultations (e.g., inclusion of storage)
3. Revenue Potential & Cost Recovery
• How are AS currently priced and recovered?
• What has been the actual revenue from AS (RRAS/FRAS)?
• How are these expected to grow with:
o Increased renewable variability
o Frequency / ramping needs
o Grid flexibility mandates
• What kind of assets are best placed to earn from AS?
4. International Benchmarks
• Short summary of how AS markets work in:
o US (CAISO / PJM)
o Europe (UK / Germany)
o Australia
• Revenue contribution of AS in these markets
• Role of BESS, gas, flexible loads
5. Gaps in India’s System
• Pricing signals and economic incentives – are they strong enough?
• Tech readiness (AGC, metering, SCADA, forecasting)
• Market access – are IPPs allowed to participate directly?
• Operational transparency
6. Strategic Implications for ReNew
• What capabilities do we need to build for participating in AS?
• Can BESS or flexible assets in our portfolio earn through AS?
• Do we need bidding or dispatch models?
• What kind of projects (co-located BESS, standalone, grid-connected) are best suited?
Deliverables Expected:
• Structured report or presentation deck covering all above
• Excel/visual model (optional): Revenue potential for a typical 100 MW BESS from AS
markets in future (based on benchmarks)
Suggested Sources:
• CERC Orders & Papers
• POSOCO/NLDC reports on RRAS
• IEA reports on Ancillary Services
• Market data from UK’s Elexon, CAISO, PJM
• Reports by NREL, CEEW, and Brookings India
To apply, send your resume and role preference to summer-internship@renew.com