Two-part regulating reserve compensation formulation under energy and ancillary service co-optimization

Author

Yonghong Chen

Author_Institution

Midwest Indep. Transm. Syst. Operator (MISO), Carmel, IN, USA

fYear

2013

fDate

21-25 July 2013

Firstpage

1

Lastpage

5

Abstract

FERC Order 755 required each RTO/ISO to use market-based mechanisms to select and compensate frequency regulation resources based on a two-part payment methodology, i.e. a capacity payment to keep the capacity in reserve and a performance payments to reflect the amount of work each resource performs in real-time in response to the system operator´s dispatch signal. This paper discusses the formulations to accommodate the two-part regulation compensation under co-optimized energy and ancillary service market.

Keywords

ISO standards; compensation; frequency control; load dispatching; optimisation; power markets; FERC Order 755; RTO-ISO; ancillary service cooptimization; ancillary service market; compensate frequency regulation resource; energy market; energy service cooptimization; market-based mechanism; operator dispatch signal system; two-part capacity payment methodology; two-part regulating reserve compensation formulation; Automatic generation control; Economics; ISO; Optimization; Real-time systems; Reliability; Spinning; Ancillary services; Co-optimization; Dispatch and scheduling; Locational marginal price; Market Clearing Price; Market design; Reserve; System reliability;

fLanguage

English

Publisher

ieee

Conference_Titel

Power and Energy Society General Meeting (PES), 2013 IEEE

Conference_Location

Vancouver, BC

ISSN

1944-9925

Type

conf

DOI

10.1109/PESMG.2013.6672107

Filename

6672107