Establishment of Regulation Service market in Iran restructured power system

Ancillary services (AS) play a prominent role in order to maintain the security and adequacy of power systems - either conventional or restructured. The system operator is the entity responsible for the secure operation of the power system and in this way, the management of all the AS is considered a specific function of the system operator. Under the deregulated framework, AS are separated from the energy production and can be mandatory or remunerated under market driven mechanism. Iran Grid Management Company (IGMC) includes the independent system operator (ISO) and Market Operator (MO) of Iran electricity grid. Regulation (Primary Frequency Control) - one of the Ancillary Services - is used for following moment to moment variation in customer demand or scheduled generation delivery, in order to sustain the standard frequency (50 or 60 Hz). This paper presents the structure, experiences, technical impacts, benefits and challenges of the current performance of Regulation Service market in Iran restructured power system.