NLDC issues roadmap to expand Automatic Generation Control to renewables, BESS and PSP
Author: PPD Team Date: January 7, 2026
The National Load Despatch Centre (NLDC) of Grid Controller of India Limited (Grid-India) has released a consultation paper setting out how Automatic Generation Control (AGC) can be extended to Renewable Energy Generating Stations (REGS), Battery Energy Storage Systems (BESS) and Pumped Storage Plants (PSP). Issued on 31 December 2025, the document captures learnings from pilot projects and proposes a structured pathway for nationwide implementation, with stakeholder comments invited by 31 January 2026.
The paper, titled “Automatic Generation Control of REGS, BESS, and PSP in India – Operational Experience from Pilot Projects and Future Roadmap,” was prepared in line with directions from the Central Electricity Regulatory Commission (CERC) in Suo-Motu Petition No. 2/SM/2025. It seeks feedback on technical architecture, rollout mechanisms and commercial settlement structures to integrate new resource types into AGC.
Since its nationwide launch on 20 July 2021, Automatic Generation Control (AGC) has become an essential component of India’s frequency management system. At present, 219 generating units from 85 plants, covering coal, gas, hydro, solar, pumped hydro and battery storage, with a combined capacity of about 82.83 GW are connected to AGC. These assets together offer around 1,500–2,000 MW of real-time regulation, helping maintain system frequency within ±0.15–0.20 Hz. With renewable capacity now near 250 GW and targeting 500 GW by 2030, the paper notes the need to include variable renewable power and flexible storage resources within automated control to reduce manual interventions and strengthen grid stability.
The consultation paper builds on pilot projects completed in 2024 and 2025. A pilot at the 180 MW Devikot solar plant in Rajasthan between April and June 2024 demonstrated that large-scale solar can technically participate in AGC, particularly for down-regulation during high-frequency situations. However, the absence of an aggregated Maximum Power Point Tracking (MPPT) signal at the plant controller level was identified as a limitation, prompting a recommendation to incorporate this requirement in future plant standards. The paper proposes enabling AGC for all solar and wind plants of 100 MW and above, primarily to provide down-regulation support during system exigencies.
In May 2025, a 20 MW / 40 MWh BESS at Kilokari in New Delhi was successfully operated under AGC. The tests confirmed a fast and accurate response in charging and discharging modes. At the same time, operational constraints such as fixed operating windows and manufacturer-imposed cooling-off periods limited continuous response capability. The paper recommends that BESS should ideally support seamless bidirectional response without mandatory idle periods, subject to grid security limits.
Closed-loop AGC testing was also conducted at the Tehri Pumped Storage Plant in September 2025. While PSP offers long-duration flexibility, the tests showed that the available regulation band in pumping mode is limited, constraining its ability to provide AGC support in that mode.
A substantial part of the document focuses on commercial design. For renewable plants, the paper evaluates compensation structures ranging from zero marginal cost treatment to small performance-linked incentives of Rs 0.05–Rs 0.10 per kWh or a tariff-linked percentage. It notes that a low or zero compensation approach may be the most reflective of cost realities. For BESS, two frameworks are presented. Under Option A, a Declared Compensation Charge structure would refund charging energy and pay for discharging energy at a declared rate, with mileage incentive up to Rs 0.50 per kWh, while round-trip losses remain with the operator. Simulations indicate that this may not fully recover costs for large BESS assets, possibly requiring an additional premium. Option B proposes a fixed weekly payment for committed reserves, covering both energy and incentive costs. For PSP and hydro generators, the paper suggests treating down-regulation as zero marginal cost, removing related commercial disincentives, excluding AGC and Primary Frequency Response (PFR) energy from tariff availability calculations, and expanding the beta factor incentive to PSP in both pumping and generation modes.
The consultation also highlights the role of intra-state capacity. Around 6,800 MW of intra-state plants already contribute to regional Secondary Reserve Ancillary Services (SRAS), and State Load Despatch Centres (SLDCs) are encouraged to onboard more generators to support system frequency and gain operational experience before moving to full AGC operation.
Grid-India positions the proposals as a key step toward building a flexible, renewable-heavy power system capable of maintaining reliability amid rising variable generation.
The featured photograph is for representation only.