A possible engineering and economic framework for implementing demand side participation in frequency regulation at value

In this paper we propose an extension of today´s Automatic Generation Control (AGC) to enable the participation of demand in frequency stabilization and regulation. This is in addition to the demand participation in energy markets. We stress that as many intermittent energy resources get deployed, it becomes necessary to account for their fluctuations much the same way as the AGC accounts for load fluctuations at present. We outline both technical and economic approach to implementing AGDC at value. A simple example is used to illustrate proof-of-concept for AGDC.