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Barriers to entry in frequency-regulation services markets: Review of the status quo and options for improvements

Olivier Borne, Klaas Korte, Yannick Perez (), Marc Petit and Alexandra Purkus

Renewable and Sustainable Energy Reviews, 2018, vol. 81, issue P1, 605-614

Abstract: As the share of intermittent renewable energy sources increases, it will be necessary to increase the volume of frequency-regulation reserves. New sources of reserves can be found in distributed energy resources: controllable loads, Electric Vehicles (EVs), distributed generation units. However, it is necessary to adapt the frequency-regulation reserve market design to allow these new resources to participate through new market players known as “aggregators”. The aim of this paper is to provide a modular framework to analyze frequency regulation markets or mechanisms in order i) to identify barriers to entry for aggregators and ii) to identify some options to overcome these barriers. A case study of the situation in 2016 of four major European frequency regulation markets is performed to show how this framework could be used by aggregators or policy-makers.

Keywords: Market design; Frequency regulation services; Distributed energy resources (search for similar items in EconPapers)
Date: 2018
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Working Paper: Barriers to entry in frequency-regulation services markets: Review of the status quo and options for improvements (2018)
Working Paper: Barriers to entry in frequency-regulation services markets: Review of the status quo and options for improvements (2018)
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