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Economic Model of Ancillary Services in Real Time for Frequency Control

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  • Kristian Balzer

    (Department of Electrical Engineering, Pontificia Universidad Católica de Chile, Vicuña Mackenna 4860, Macul, Santiago 7820436, Chile
    Real-Time Dispatch and Control Center (CDC), Coordinador Eléctrico Nacional de Chile, Av. Parque Isidora Sur 1061, Pudahuel 9020000, Chile)

  • Joaquín Lazo

    (Department of Electrical Engineering, Pontificia Universidad Católica de Chile, Vicuña Mackenna 4860, Macul, Santiago 7820436, Chile)

  • David Watts

    (Department of Electrical Engineering, Pontificia Universidad Católica de Chile, Vicuña Mackenna 4860, Macul, Santiago 7820436, Chile
    Escuela Iberoamericana de Regulación Eléctrica EIRE-UC, Vicuña Mackenna 4860, Santiago 7820436, Chile
    UC Energy Research Center, Vicuña Mackenna 4860, Macul, Santiago 7820436, Chile)

Abstract

Modern power systems integrate ancillary services (ASs) to provide security and quality of service in real-time operation (RTO) due to the intense frequency variations caused by the uncertainty of solar–wind generation. To this end, the ancillary services market focuses on power reserves for secondary and tertiary frequency control. The adjustment and dispatch of reserves from plants are manual instructions executed by the system operator in order to maintain the frequency within the normal operating range (49.80 ≤ f ≤ 50.20 Hz). This work proposes a methodology for the economic modeling of the ancillary services market in real time using a dynamic hourly mathematical model that integrates the variability of solar–wind generation, a demand monitoring curve, and the trajectory of marginal cost (MgC). This is a segmented methodology in which plants with costs close to the marginal cost are identified in real time using the Supramarginal (SMg) and Inframarginal (IMg) methods. Finally, this economic model for real-time power reserve reallocation represents an innovation in the ancillary services market because its results allow for the operation costs (OC) of the reserves to be reduced by up to 60% and for the displacement of marginal costs to be reduced by 10 to 40% with respect to traditional methodologies such as the economic merit list and the technical minimum methodology, which cause plants to operate without economic justification.

Suggested Citation

  • Kristian Balzer & Joaquín Lazo & David Watts, 2023. "Economic Model of Ancillary Services in Real Time for Frequency Control," Energies, MDPI, vol. 16(17), pages 1-24, September.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:17:p:6378-:d:1231878
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    References listed on IDEAS

    as
    1. 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).
    2. Hermans, Mathias & Bruninx, Kenneth & Van den Bergh, Kenneth & Poncelet, Kris & Delarue, Erik, 2021. "On the temporal granularity of joint energy-reserve markets in a high-RES system," Applied Energy, Elsevier, vol. 297(C).
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    4. Frade, P.M.S. & Santana, J.J.E. & Shafie-khah, M. & Catalão, J.P.S., 2018. "Impact of tertiary reserve sharing in Portugal," Utilities Policy, Elsevier, vol. 55(C), pages 167-177.
    5. 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).
    6. Li, Zhenghui & Huang, Zimei & Su, Yaya, 2023. "New media environment, environmental regulation and corporate green technology innovation:Evidence from China," Energy Economics, Elsevier, vol. 119(C).
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