Design of an Efficient Ancillary Services Market

Author

Papalexopoulos, Alex D.

Author_Institution

ECCO Int., San Francisco, CA

fYear

2007

fDate

24-28 June 2007

Firstpage

1

Lastpage

2

Abstract

Ancillary services are essential to the reliability and security of power system operation in any competitive electricity market environment. This paper discusses various AS market design options for procuring, pricing and settling ancillary services via competitive auctions by an independent system operator (ISO). The paper also discusses problems and potential solutions associated with these market design options based on actual experience of operating ISOs. These problems include price volatility and spikes and price reversals for the various components of the ancillary services that can create perverse incentives in the marketplace. Further we elaborate on the design that has been proven so far based on practical experience to be the most efficient.

Keywords

power markets; power system economics; power system reliability; power system security; pricing; procurement; ancillary services market; competitive auctions; competitive electricity market environment; independent system operator; power system operation; power system reliability; power system security; pricing; procurement; Costs; Councils; Electricity supply industry; ISO; North America; Power system reliability; Power system security; Pricing; Procurement; Voltage; Ancillary Services; Auctions; Energy Market Design; Independent System Operators;

fLanguage

English

Publisher

ieee

Conference_Titel

Power Engineering Society General Meeting, 2007. IEEE

Conference_Location

Tampa, FL

ISSN

1932-5517

Print_ISBN

1-4244-1296-X

Electronic_ISBN

1932-5517

Type

conf

DOI

10.1109/PES.2007.386264

Filename

4276030