Economic Model of Ancillary Services in Real Time for Frequency Control

Kristian Balzer, Joaquín Lazo and David Watts ()
Additional contact information
Kristian Balzer: Department of Electrical Engineering, Pontificia Universidad Católica de Chile, Vicuña Mackenna 4860, Macul, Santiago 7820436, 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

Energies, 2023, vol. 16, issue 17, 1-24

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.

Keywords: ancillary services; economic merit list; economic model; marginal cost; real time operation; reserve power; secondary frequency control; tertiary frequency control; unit commitment (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1996-1073/16/17/6378/pdf (application/pdf)
https://www.mdpi.com/1996-1073/16/17/6378/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:16:y:2023:i:17:p:6378-:d:1231878

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().