Designing of a Competitive Ancillary Services Power Market

Abstract

Ancillary services are an indispensable part of interconnected power grids, as they newlinehelp maintain reliable transmission of power thereby, ensuring quality and safety of newlineoperations. These services support power system reliability, and may be provided by newlinethe System Operator or some other service provider. A System Operator s ancillary newlineservices, catalog may include a combination of frequency support, voltage support, newlineand system restoration. However, electricity industry structure across the world has newlinedifferent standards and definitions for defining these services and gets significantly newlineinfluenced by the electricity industry structure of that country. The ancillary service newlinedefinitions often, require close examination as they are not very clear to a novice eye newlineand identifying points of similarity between them, may not be an easy task either. The newlineneeds of the frequency and voltage services, vary from country to country depending newlineon the customers and the system operators requirements and the energy mix of the newlinecountry. An ancillary market, is a proven way to encourage individual participants to newlineprovide these services on a competitive basis. newline