The Central Electricity Regulatory Commission has issued draft Ancillary Services Regulations, 2021 to provide for a regulatory mechanism for ancillary services in the interest of reliability, safety and security of the grid. The objective of these regulations is to provide mechanisms for procurement, through administered as well as market-based mechanisms, deployment and payment of ancillary services for maintaining the grid frequency close to 50 Hz. The commission has proposed a mechanism to allow load despatch centres to buy power to be used for ancillary services from the spot market through electricity exchanges. For tertiary reserve ancillary services, the National Load Despatch Centre will have to notify the power exchanges the quantum of electricity requirement on a day-ahead basis before the commencement of the day-ahead market or the real-time market. Comments have been sought by June 30, 2021.