IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v14y2021i19p6105-d642769.html
   My bibliography  Save this article

Proposal of a New Procurement Strategy of Frequency Control Reserves in Power Systems: The Italian Case in the European Framework

Author

Listed:
  • Enrico Maria Carlini

    (Terna, Viale Egidio Galbani, 70, 00056 Rome, Italy)

  • Mauro Caprabianca

    (Terna, Viale Egidio Galbani, 70, 00056 Rome, Italy)

  • Maria Carmen Falvo

    (DIAEE-Department of Astronautics, Energy and Electrical Engineering, University of Rome Sapienza, Via Eudossiana 18, 00184 Rome, Italy)

  • Sara Perfetti

    (Terna, Viale Egidio Galbani, 70, 00056 Rome, Italy)

  • Luca Luzi

    (Terna, Viale Egidio Galbani, 70, 00056 Rome, Italy)

  • Federico Quaglia

    (Terna, Viale Egidio Galbani, 70, 00056 Rome, Italy)

Abstract

Over the last few years, a strong penetration of Intermittent Renewable Energy Sources (IRES) has been in progress in the Italian power system. In this new framework, the dispatching activity must improve its efficiency to ensure adequacy and security of the national electricity system. European market integration initiatives are making this goal achievable, provided that the coherency of market price signals and reserve procurement at the European level are guaranteed. For this reason, the Italian Transmission System Operator (TSO), Terna, started to investigate the opportunity to align the Italian reserve-procurement approach to the one adopted in most European countries, procuring Replacement Reserve (RR) in dedicated auctions held in advance of the day-ahead market. The aim of this new methodology is to improve the coherency of price signals arising from the integrated European day-ahead market, anticipating potential scarcity conditions, thus helping to keep adequacy standards high. This paper describes the characteristics of a possible new reserve-procurement model based on the European benchmark. Comparative simulations are presented, estimating the impact of the new approach in terms of outcomes and costs of both the energy and ancillary services markets in Italy. The results of this study suggest activation of the reserve auction only in the cases in which the TSO expects a potential risk of simultaneous reserve scarcity across European countries.

Suggested Citation

  • Enrico Maria Carlini & Mauro Caprabianca & Maria Carmen Falvo & Sara Perfetti & Luca Luzi & Federico Quaglia, 2021. "Proposal of a New Procurement Strategy of Frequency Control Reserves in Power Systems: The Italian Case in the European Framework," Energies, MDPI, vol. 14(19), pages 1-21, September.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:19:p:6105-:d:642769
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/14/19/6105/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/14/19/6105/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Poplavskaya, Ksenia & de Vries, Laurens, 2019. "Distributed energy resources and the organized balancing market: A symbiosis yet? Case of three European balancing markets," Energy Policy, Elsevier, vol. 126(C), pages 264-276.
    2. Mauro Caprabianca & Maria Carmen Falvo & Lorenzo Papi & Lucrezia Promutico & Viviana Rossetti & Federico Quaglia, 2020. "Replacement Reserve for the Italian Power System and Electricity Market," Energies, MDPI, vol. 13(11), pages 1-19, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Piotr Raźniak & Sławomir Dorocki & Tomasz Rachwał & Anna Winiarczyk-Raźniak, 2021. "The Role of the Energy Sector in the Command and Control Function of Cities in Conditions of Sustainability Transitions," Energies, MDPI, vol. 14(22), pages 1-14, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rancilio, G. & Rossi, A. & Falabretti, D. & Galliani, A. & Merlo, M., 2022. "Ancillary services markets in europe: Evolution and regulatory trade-offs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    2. Chen, Ting & Vandendriessche, Frederik, 2023. "Enabling independent flexibility service providers to participate in electricity markets: A legal analysis of the Belgium case," Utilities Policy, Elsevier, vol. 81(C).
    3. Lisi, Francesco & Grossi, Luigi & Quaglia, Federico, 2023. "Evaluation of Cost-at-Risk related to the procurement of resources in the ancillary services market. The case of the Italian electricity market," Energy Economics, Elsevier, vol. 121(C).
    4. Gianfreda, Angelica & Ravazzolo, Francesco & Rossini, Luca, 2020. "Comparing the forecasting performances of linear models for electricity prices with high RES penetration," International Journal of Forecasting, Elsevier, vol. 36(3), pages 974-986.
    5. Barbero, Mattia & Corchero, Cristina & Canals Casals, Lluc & Igualada, Lucia & Heredia, F.-Javier, 2020. "Critical evaluation of European balancing markets to enable the participation of Demand Aggregators," Applied Energy, Elsevier, vol. 264(C).
    6. Lago, Jesus & Poplavskaya, Ksenia & Suryanarayana, Gowri & De Schutter, Bart, 2021. "A market framework for grid balancing support through imbalances trading," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    7. Lopez, A. & Ogayar, B. & Hernández, J.C. & Sutil, F.S., 2020. "Survey and assessment of technical and economic features for the provision of frequency control services by household-prosumers," Energy Policy, Elsevier, vol. 146(C).
    8. Kumar, T. Bharath & Singh, Anoop, 2021. "Ancillary services in the Indian power sector – A look at recent developments and prospects," Energy Policy, Elsevier, vol. 149(C).
    9. Adam Lesniak & Dawid Chudy & Rafal Dzikowski, 2020. "Modelling of Distributed Resource Aggregation for the Provision of Ancillary Services," Energies, MDPI, vol. 13(18), pages 1-16, September.
    10. Đorđe Lazović & Željko Đurišić, 2023. "Advanced Flexibility Support through DSO-Coordinated Participation of DER Aggregators in the Balancing Market," Energies, MDPI, vol. 16(8), pages 1-26, April.
    11. Karaca, Orcun & Delikaraoglou, Stefanos & Hug, Gabriela & Kamgarpour, Maryam, 2022. "Enabling inter-area reserve exchange through stable benefit allocation mechanisms," Omega, Elsevier, vol. 113(C).
    12. Michaelis, Anne & Hanny, Lisa & Körner, Marc-Fabian & Strüker, Jens & Weibelzahl, Martin, 2024. "Consumer-centric electricity markets: Six design principles," Renewable and Sustainable Energy Reviews, Elsevier, vol. 191(C).
    13. Prakash, Abhijith & Bruce, Anna & MacGill, Iain, 2022. "Insights on designing effective and efficient frequency control arrangements from the Australian National Electricity Market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 161(C).
    14. Glismann, Samuel, 2021. "Ancillary Services Acquisition Model: Considering market interactions in policy design," Applied Energy, Elsevier, vol. 304(C).
    15. Rabab Haider & David D'Achiardi & Venkatesh Venkataramanan & Anurag Srivastava & Anjan Bose & Anuradha M. Annaswamy, 2021. "Reinventing the Utility for DERs: A Proposal for a DSO-Centric Retail Electricity Market," Papers 2102.01269, arXiv.org.
    16. López González, Diana María & Garcia Rendon, John, 2022. "Opportunities and challenges of mainstreaming distributed energy resources towards the transition to more efficient and resilient energy markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).
    17. Tadeusz Mączka & Halina Pawlak-Kruczek & Lukasz Niedzwiecki & Edward Ziaja & Artur Chorążyczewski, 2020. "Plasma Assisted Combustion as a Cost-Effective Way for Balancing of Intermittent Sources: Techno-Economic Assessment for 200 MW el Power Unit," Energies, MDPI, vol. 13(19), pages 1-16, September.
    18. Sinan Deng & John Inekwe & Vladimir Smirnov & Andrew Wait & Chao Wang, 2023. "Machine Learning and Deep Learning Forecasts of Electricity Imbalance Prices," Working Papers 2023-03, University of Sydney, School of Economics.
    19. Chen, Ting & Vandendriessche, Frederik, 2023. "Evolution of the EU legal framework for promoting RES-E: A market compatible paradigm shift?," Utilities Policy, Elsevier, vol. 83(C).
    20. Maria Carmen Falvo & Stefano Panella & Mauro Caprabianca & Federico Quaglia, 2021. "A Review on Unit Commitment Algorithms for the Italian Electricity Market," Energies, MDPI, vol. 15(1), pages 1-14, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:14:y:2021:i:19:p:6105-:d:642769. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.