MODERN INSTITUTE OF TECHNOLOGY AND RESEARCH CENTRE, ALWAR

Name of Faculty: Gauri Shankar

Subject: RPS

Semester: V Session: 2021-22 (Odd Sem)

Branch: EE Batch: A

Unit: V Date of Submission: 11/10/21

Page Total
Topics Covered
No. Page
17 Types Of Ancillary Services 55-59 5

18 Classification Of Ancillary Services 60-64 5

19 Provisions Of Ancillary Services 65-69 5

20 Co-Optimization Of Energy And Reserve Services 70-72 3

21 International Practices Of Ancillary Services 73-77 5

MODERN INSTITUTE OF TECHNOLOGY AND RESEARCH CENTRE, ALWAR

Name of Faculty: Gauri Shankar

Subject: RPS

Semester: V Session: 2021-22 (Odd Sem)

Branch: EE Batch: A

Unit: V Date of Submission: 11/10/21

Plagiarism
Topics Covered

17 Types Of Ancillary Services 62

18 Classification Of Ancillary Services 55

19 Provisions Of Ancillary Services 48

20 Co-Optimization Of Energy And Reserve Services 56

21 International Practices Of Ancillary Services 42

Average: 49%
Unit-5 EE-5 Sem. Restructured Power System

UNIT-4 (ANCILLARY SERVICE MANAGEMENT)

LECTURE NO:-17

INTRODUCTION

The activities of the system operator pertaining to operation and control of the system
existed during vertically integrated era and continue to exist in the restructured era.

These activities basically stem from the responsibility of the system operator to keep
the system in synchronism and operate it reliably.

In the restructured environment, these activities are typically known as ancillary

services .

Provision of ancillary services under the deregulated environment is not as straight

forward as it is described in the vertically integrated structure.

Though many reasons can be figured out, the main reason is that the entities
providing ancillary services may not be under direct control of the system operator.

This issue is highlighted with following two examples.

The generators in the competitive market are scheduled as per the bids provided by
them to the market. A power system that has generation just enough to support the
overall load and losses is still a vulnerable system. The system should have provision
for additional generation during contingencies like generator outages.

Total capacity of some generating units can be partly dispatched for energy and
partly kept ready for reserve. For a particular privately owned generating unit with
fast ramp rate, the system operator is likely to schedule most of its capacity as a
reserve.

The generator, however, may not agree to this unless and until some compensation is
provided to it for maintaining its capacity as a reserve. Thus, the development of
compensation mechanism for this generator, as well as the cost allocation to

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customers in an optimal fashion, poses a challenging problem in the restructured

environment.

Imagine another situation where, a particular generator is operating on the boundary

of its capability curve. An action demanded by the system operator to increase the
reactive power injection for this generator requires decrease in real power injection.

This action, though essential from the system security perspective, is against the
market decision and again, the generator may not agree to do so without proper
compensation.

Both these situations do not create much problem in the vertically integrated
structure because, under that regime, the generating units are directly under the
control of system operator, who also is a part of the vertically integrated utility.

A power system would continue to run in synchronism or be stable, unless and until
it is perturbed. However, a practical power system having thousands of elements like
transmission lines, transformers, switchgear, shunt elements, generators, etc., is
certainly prone to disturbances.

The system operator has to keep all state variables within the practical limits under
normal as well as under contingent situation.

Moreover, it has to achieve the global load-generation balance at all times. Thus,
even though the power industry has been deregulated, the technical activity of
control and operation remains the same.

However, the manner in which some of the facilities are procured or provided by the
system operator may change, depending upon the type of control. In the vertically
integrated era, whole of the resources required to take corrective control actions are
under the control of a single utility.

This is not the case under competitive environment. Some of the resources required
for control of the system belong to other entities.

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Thus, they are not mandated to act as per the directives of the system operator, unless
and until a commercial agreement exists between them.

Thus, these are the services which are required to be purchased by the system
operator on commercial terms.

As is apparent, the main commodity that is traded in the power market is the
electrical power or the electrical energy. However, to make the transactions of power
exchange or some other trading platform to be feasible, with security and quality,
some supporting services are required, which are nothing but the ancillary services.
The word ancillary stems from the fact that they support the main activity of the
market, i.e., trading of electrical energy or power.

TYPES OF ANCILLARY SERVICES

A large number of activities on the interconnected grid can be termed as ancillary

services.

During the process of defining the ancillary services, some proposals tried to define
60 different ancillary services! In order to remove this large discrepancy, the North
American Electric Reliability Council (NREC) along with Electric Power Research
Institute (EPRI) has identified 12 functions as ancillary services. These are:

Regulation: The use of generation or load to maintain minute-to-minute generation-

load balance within the control area.

Load Following: This service refers to load-generation balance towards end of a

scheduling period.

Energy Imbalance: The use of generation to meet the hour-to-hour and daily
variations in load.

Operating Reserve (Spinning): The provision of unloaded generating capacity that

is synchronized to the grid and can immediately respond to correct for generation-
load imbalances, caused by generation and /or transmission outages and that is fully
available for several minutes.
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Operating Reserve (Supplemental): The provision of generating capacity and

curtailable load to correct for generation-load imbalances, caused by generation and
/or transmission outages, and that is fully available for several minutes. However,
unlike spinning reserves, supplemental reserve is not required to respond
immediately.

Backup Supply: This service consists of supply guarantee contracted by generators

with other generators or with electrical systems, to ensure they are able to supply
their consumers in case of scheduled or unscheduled unavailability.

System Control: This activity can be compared with the functions of the brain in the
human body. System control is all about control area operator functions that schedule
generation and transactions and control generation in real time to maintain generation
load balance.

Dynamic Scheduling: It includes real-time metering, tele-metering along with

computer software and hardware to virtually transfer some or all of generator’s
output or a customer’s load from one control area to another.

Reactive Power and Voltage Control Support: The injection or absorption of

reactive power from generators or capacitors to maintain system voltages within
required ranges.

Real Power Transmission Losses: This service is necessary to compensate for the
difference existing between energy supplied to the network by the generator and the
energy taken from the network by the consumer.

Network Stability Services from Generation Sources: Maintenance and use of

special equipment (e.g., PSS, dynamic braking resistances) to maintain secure
transmission system.

System Black Start Capability: The ability of generating unit to proceed from a
shutdown condition to an operating condition without assistance from the grid and
then to energize the grid to help other units start after a blackout occurs.

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It should be noted that identification and definition of a particular ancillary service is

system dependent.

There is no global definition of a particular ancillary service that is applicable in all

systems. There can be many other possible definitions or combinations.

References:
1. https://www.coursehero.com/file/82630594/L24-Ancillary-Services-Ipdf/
2. https://www.scribd.com/document/327947922/Ancillary-Service-Management
3. https://www.jcboseust.ac.in/electrical/images/notes/rps_mtech_01042020.pdf
4. https://studylib.net/doc/5318140/ancillary-services

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LECTURE NO:-18

CLASSIFICATION OF ANCILLARY SERVICES

There can be various ways of classifying the above ancillary services. One common
approach would be to identify when and how frequently these services are required
by the system operator . Thus, three groups can be formed:

1. Services required for routine operation:

These are the services which the system operator requires quite frequently. Some of
these may be required to provide corrective action on minute-to-minute basis.
Following services can be grouped under this category:

(a) System control

(b) Reactive power support

(c) Regulation

(d) Load following

(e) Energy imbalance

(f) Real power loss displacement

2. Services required to prevent an outage from becoming a catastrophe:

These services prevent the system from going out of step even if a major event
occurs. These do not come into picture on daily basis, or rather; no proactive
measures are required to be taken either by the system operator or the service
provider on daily basis. Their effectiveness is sensed only under contingent situation.
Following services fall under this category:

(a) Spinning reserve

(b)Supplemental reserve

(c)Network stability services

3. Services needed to restore a system after blackout:

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Re-energizing the system after complete blackout requires support from certain
generating stations, which can pickup generation even in the

absence of external electricity support. Such generating units provide the system
black start capability. These services are very rarely used.

LOAD GENERATION BALANCING RELATED SERVICES

There can be various ways of classifying the above ancillary services. One common
approach would be to identify when and how frequently these services are required
by the system operator . Thus, three groups can be formed:

Frequency deviations, if large enough, may lead to total system collapse. If the
system frequency drops drastically due to a sudden mismatch of load and generation,
the under-frequency protection relays isolate the generating units to avoid damage.
This dis-connection of generating units further increases the drop in frequency. This
unbalance and series of incidences may cause disconnection of tie lines and affect
the stability of neighboring control areas.

The imbalance between load and generation may arise due to uncertainties in
demand forecasting, generators' inability to follow up the changes in load and
generation or load trips. The vertically integrated utility was responsible for
maintaining sufficient generation to cope up with the load variations and maintain
the reliability. However, under the restructured environment, many questions arise
about which generator should take up the burden of providing the balance and how it
would be compensated for the same.

The rapid fluctuations are handled by the regulation service. The trend of slower
change during that hour is taken care by load following service. Load following
involves handling the imbalance at the end of scheduling interval. These two services
plus energy imbalance together ensure that, under normal operating conditions, a
control area is able to continuously balance generation to load. Explanation of two
services is provided.

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Components of a load Frequency Regulation Regulation is the use of online

generating units that are equipped with control mechanism that can change output
quickly to track the moment-to- moment fluctuations in load and unintended
fluctuations in generation. In doing so, regulation helps to maintain the system
frequency, minimize the differences between actual and scheduled power flows
between control areas, and match generation to load within the control area.

VOLTAGE CONTROL AND REACTIVE POWER SUPPORT

SERVICE

System operators use reactive power resources to maintain the voltage at all the
buses around the nominal value. Keeping transmission level voltages at nominal
value or within a tight range ensures proper voltages at the distribution levels.

Another important factor is that the transmission network security is closely

associated with the voltage profile.

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Since the voltage on a bus is strongly coupled with the supply of reactive power, the
voltage control service is also called reactive power support service.

It is prudent to control the bus voltages by providing for reactive power locally,
rather than making it to flow through the grid.

There are three major reasons for this.

First, the power system equipment is designed to operate within a range of voltages,
usually within ± 5% of the nominal voltage.

At low voltages, the performance of most of the electrical equipments is poor. For
example, induction motors can overheat and get damaged.

High voltages not only damage the equipment but lalso shorten their life.Second, the
power transmission capability available from a transmission line design is limited by
technological as well as economical constraints.

The reactive power consumes transmission and generation capacity. To maximize

the amount of real power that can be transferred across a congested transmission
interface, reactive power flows must be minimized.

Similarly, reactive power production can limit a generator’s real power

capability.Third, moving reactive power on the transmission system incurs real
power losses. Thus, additional energy must be supplied to replace these losses.

Different Sources of Reactive Power Reactive power support can be provided by

active sources like generators and synchronous condensers, as well as by locally
installed passive elements like capacitors or inductors. Power electronics based
family of devices called Flexible AC Transmission System (FACTS) can also act as
reactive power support devices.

Various sources of reactive power support have different characteristics in terms of

dynamics and speed of response, ability of voltage changes, capital costs, operating
costs and opportunity costs.

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The synchronous generators are very fast reactive support devices. The ability of a
generator to provide reactive support depends on its real-power production.

Like most electric equipment, generators are limited by their current-carrying

capability. Near rated voltage, this capability becomes an MVA limit for the
armature of the generator rather than a MW limitation.

Production of reactive power involves increasing the magnetic field to raise the
generator’s terminal voltage.

Increasing the magnetic field requires increasing the current in the rotating field
winding. This too is current limited, resulting in the field-heating limit.

Absorption of reactive power is limited by the magnetic-flux pattern in the stator,

which results in excessive heating of the stator-end iron, the core-end heating limit

The synchronizing torque is also reduced when absorbing large amounts of reactive
power, which can also limit generator capability to reduce the chance of losing
synchronism with the system.

References:
1. https://www.coursehero.com/file/82630594/L24-Ancillary-Services-Ipdf/
2. https://www.scribd.com/document/327947922/Ancillary-Service-Management
3. https://www.jcboseust.ac.in/electrical/images/notes/rps_mtech_01042020.pdf
4. https://studylib.net/doc/5318140/ancillary-services

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LECTURE 19

PROVISIONS OF ANCILLARY SERVICES

Role of Nodal Agency

Nodal Agency shall prepare merit order stack of Inter-State Generating Stations as
stipulated in regulation and take despatch decision.

For Regulation-Up, the Nodal Agency shall prepare stack of un-requisitioned surplus
capacities available in respect of Inter-State Generating Stations from lowest variable
cost to highest variable cost in each time block, and taking into account ramp up or
ramp down rate, response time, transmission congestion and such other parameters
as stipulated in the Detailed Procedure. For Regulation-Down, a separate merit order
stack from highest variable cost to lowest variable cost incorporating technical
parameters as above shall be prepared.

Nodal agency shall prepare merit order stack factoring inter-regional and
intraregional transmission constraints, if any.

Nodal Agency shall monitor the frequency during continuous low frequency or high
4 frequency period, any system contingency, loading on tie line etc.

Nodal agency shall direct the selected RRAS Provider(s) based on the merit order for
economical despatch for Regulation Up and Regulation Down, as and when
requirement arises in the system on account of any of the following events: i.
Extreme weather forecasts and/or special day; ii. Generating unit or transmission line
outages; iii. Trend of load met; iv. Trends of frequency; v. Any abnormal event such
as outage of hydro generating units due to silt, coal supply blockade etc.; vi.
Excessive loop flows leading to congestion; and vii. Such other events.

Nodal agency shall direct the selected RRAS Provider(s) to withdraw their services
after the circumstances leading to triggering of RRAS no longer exist. The time-
frame for withdrawal of service shall be determined as per the Detailed Procedure.

Role of Reserves Regulation Ancillary Services Provider (RRAS Provider)

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The RRAS Provider shall on monthly basis submit details of fixed charges and
variable charges, and any other applicable statutory charges, to the Regional Power
Committees.

The RRAS Provider shall inject or back down generation as per the instruction of the
Nodal Agency for Regulation Up and Regulation Down respectively.

Role of Regional Power Committees

The Regional Power Committees shall intimate the Nodal Agency on monthly basis
the details of fixed charges, variable charges and any other statutory charges
applicable for the RRAS Providers for merit order dispatch.

The Regional Power Committee shall use the details of fixed charges, variable
charges and any other statutory charges applicable for the RRAS Providers for
preparation of their energy/ Deviation Accounts.

Dispatch of Reserves Regulation Ancillary ServicesGeneration under the RRAS shall

be scheduled to the Virtual Ancillary Entity in any one or more Regional Grids as
decided by the Nodal Agency.

Once the time period as specified by the Nodal Agency in the scheduled procedure
starts, RRAS shall be deemed to have been triggered.

The schedules of the RRAS Provider(s) shall be considered as revised by the

quantum scheduled by the Nodal Agency under RRAS. 5

Any deviations in schedule of RRAS Provider(s) beyond the revised schedule shall
be treated in accordance with the Central Electricity Regulatory Commission
(Deviation Settlement Mechanism and related matters) Regulations, 2014.

Withdrawal of Reserves Regulation Ancillary Services

The Nodal Agency, having been satisfied that the circumstances leading to triggering
of RRAS no longer exist, shall direct the RRAS Provider(s) to withdraw with effect
from the time block as specified in the Detailed Procedure.

Scheduling of Reserves Regulation Ancillary Services

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The quantum of generation dispatched shall be directly incorporated in the schedule

of respective RRAS Provider(s).

For Regulation Up Service, power shall be scheduled from the generating station to
the Virtual Ancillary Entity by the concerned Nodal Agency, until such time the
Nodal Agency gives instruction for withdrawal of service.

For Regulation Down Service, power shall be scheduled from the Virtual Ancillary
Entity to the generating station, so that effective scheduled injection of the
generating station comes down, until such time the Nodal Agency gives instruction
for withdrawal of service.

Separate statement shall be maintained along with Regional Deviation Settlement

Account for RRAS.

The energy despatched under RRAS shall be deemed as delivered ex-bus.

Energy Accounting

Energy Accounting shall be done by the respective Regional Power Committee on

weekly basis along with Deviation Settlement Account based on interface meters
data and schedule.

The Regional Power Committees shall issue an Ancillary Services Statement along
with the Deviation Settlement Mechanism Account.

Reserves Regulation Ancillary Services Settlement

The settlement shall be done by the Nodal Agency under the Deviation Settlement
Account under separate account head of Reserves Regulation Ancillary Services.

The payment to RRAS Provider(s) shall be from the Regional Deviation Pool
Account Fund. Deficit, if any, in the Regional Deviation Pool Account Fund
maintained by an RLDC due to despatch of Ancillary Services, shall be made up by
Regional Deviation Pool Account Fund maintained by other RLDCs

The RRAS Provider(s) shall be paid at their fixed and variable charges, with markup
on fixed cost, as decided by the Commission through a separate order from time to
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time in case of Regulation Up services for the quantum of RRAS scheduled, from the
Regional Deviation Pool Account Fund. Provided that, the fixed and variable charges
allowed by the Commission and as applicable at the time of delivery of RRAS shall
be used to calculate the payment for this service and no retrospective settlement of
fixed or variable charges shall be undertaken even if the fixed or variable charges are
revised at a later date.

The RRAS Provider(s) shall adjust the fixed charges to the original beneficiaries for
the quantum of un-requisitioned surplus scheduled under Regulation Up service.

For Regulation Down service, the RRAS Provider(s) shall pay back 75% of the
variable charges corresponding to the quantum of Regulation Down services
scheduled, to the Regional Deviation Pool Account Fund.

Any deviation from the schedule given under RRAS shall be in accordance with the
Central Electricity Regulatory Commission (Deviation Settlement Mechanism and
related matters) Regulations, 2014, as amended from time to time or any
subsequent re-enactment thereof.

Sustained failure to provide the RRAS (barring unit tripping) by RRAS Provider(s)
shall attract penalties on account of gaming. Violation of directions of RLDC for
RRAS shall also make the RRAS Provider(s) liable for penalties in terms of section
29 of the Act.

No commitment charges shall be payable to the RRAS Provider(s) for making

themselves available for the RRAS.

Detailed Procedure

The Nodal Agency shall, after obtaining prior approval of the Commission, issue the
Detailed Procedure within a period of 3 months of notification of these regulations.

The Detailed Procedure shall contain the guidelines regarding operational aspects of
RRAS including scheduling and dispatch and any residual matter.

Power to Relax

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The Commission may by general or special order, for reasons to be recorded in

writing, and after giving an opportunity of hearing to the parties likely to be affected
by grant of relaxation, may relax any of the provisions of these regulations on its
own motion or on an application made before it by an interested person.

Power to issue directions

If any difficulty arises in giving effect to these regulations, the Commission may on
its own motion or on an application filed by any affected party, issue such directions
as may be considered necessary in furtherance of the objective and purpose of these
regulations.

References:
1. https://www.coursehero.com/file/82630594/L24-Ancillary-Services-Ipdf/
2. https://www.scribd.com/document/327947922/Ancillary-Service-Management
3. https://www.jcboseust.ac.in/electrical/images/notes/rps_mtech_01042020.pdf
4. https://studylib.net/doc/5318140/ancillary-services

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LECTURE 20

CO-OPTIMIZATION OF ENERGY AND RESERVE SERVICES

In all the power markets of the early days, energy and reserve were traded in
different markets. These markets were cleared successively in a sequence determined
by the speed of response of the service. The market for reserve would clear first and
then the energy market would be cleared. The idea behind this was that the resources
which were not cleared in one market would be offered in the other market. Bids that
were successful in one market would not be offered in the next market.It has been
mentioned in Chapter 3 that various products offered by a generator are strongly
interlinked. The natural choice of allocating various products is to go for a joint
optimization of all products. Thus, energy and reserve should be offered in joint
markets and these markets should be cleared simultaneously to minimize the overall
cost of reserve and energy. If the energy and reserve are obtained through separate
markets instead of joint optimization, following situation may arise:

 Partially loaded generators cannot sell as much energy as they might

otherwise do.
 Out of merit order dispatch is done to meet the load.

The joint-optimization (also known as co-optimization) will take dispatch decision

taking into consideration the availability of resources and the overall cost. The joint
optimization of energy and reserve is done in multi-settlement nodal pricing markets
like PJM.Suppose the energy and reserve market is being co-optimized. As in the
energy market, reserve providers offer to provide reserve. The reserve offers do not
reflect the cost of lost opportunity to sell the energy. Instead, they are related to the
expected cost of providing reserves, which might include some fixed administrative
costs and some variable operating costs associated with providing the reserve. Let us
see what is meant by loss of opportunity cost in the context of reserve provision with
the help of Figures 6.7 and 6.8. Suppose five generators are present in the system and
they have provided the block bids.

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Figure 6.7: energy-only dispatch

Figure 6.8: Loss of opportunity cost

Let us work on standard simplifying assumptions and jump to results such that
market clearing price is λ with generator D as marginal generator. Now take the case
of combined energy and reserve market. Suppose RD is the system total reserve
demand. Suppose, in addition to energy offer, generating unit C offers to provide
reserve for free, i.e., at 0 INR / MWh (this is a simplistic case we have assumed).

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Then, generator C will have to de-load its scheduled output to PGc-RD . In order to
satisfy the power balance, generation D will have to increase its power output to
PGc+RD . The shaded portion of Figure 6.7 represents loss of opportunity cost of
generating unit C:(λ-C3).RD

References:
1. https://www.coursehero.com/file/82630594/L24-Ancillary-Services-Ipdf/
2. https://www.scribd.com/document/327947922/Ancillary-Service-Management
3. https://www.jcboseust.ac.in/electrical/images/notes/rps_mtech_01042020.pdf
4. https://studylib.net/doc/5318140/ancillary-services

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LECTURE 20

INTERNATIONAL PRACTICES OF ANCILLARY SERVICES

In this section, a brief account of technical and economic aspects of ancillary

services of the markets of England and Wales, Nordic Countries, California, New
York and Australia is given. Aspects of two important ancillary services, i.e., voltage
control and frequency regulation are discussed. England and Wales .

The transmission grid of England and Wales is operated by National Grid Company
(NGC), which is also responsible for managing ancillary services.

The costs associated with the provision of ancillary services are recovered from the
consumers through uplift in transmission payment mechanism.

Voltage Control Provision of this service is required from all the generation units
with a capacity over 30 MW. Voltage must be kept within the range of Vnom+- 10%
for 400, 275 and 132 kV networks and the power factor (PF) between 0.85 capacitive
and 0.95 inductive.

The main costs associated with this service correspond to capacity and operation.
The ratio of capacity price to operation price is approximately 1:2. Consumers pay
for the service through an uplift in their electricity tariff. Frequency Control The
system operator (SO) is required to keep the frequency between 49.5 and 50.5 Hz.

In the case of a contingency, the frequency is allowed to drop under 49.5 Hz, but for
not more than 1 minute. The supply of primary frequency regulation is mandatory for
all the generators with an installed capacity of over 50MW, which must provide the
service in continuous time. Generators are set for a droop of 3–5%.

Large consumers can provide primary frequency regulation through load shedding,
where a response period of 10 s and a duration period of 20 s are required. The costs
associated with the service are generally traded through annual bilateral contracts.
Consumers pay for this service through an increase in their electricity payment which
includes capacity, operation and compensation.

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The service of secondary frequency regulation is considered as a commercial service

and it is not considered as a mandatory provision. Generators provide it using AGC.
For those that provide the service, a response time of 30 s and a duration period of 30
min are required. As in the previous case, the costs associated with this service are
difficult to identify, and they are traded based on annual bilateral contracts and
competitive auctions.

The consumers pay through an increase in their electricity tariff which includes
capacity, operation and compensation. Nordic Countries Ancillary services are
traded in a real- time market managed by the transmission system operators.

The costs associated with ancillary services are directly transferred to the users
through the transmission payment. Voltage Control The local provision of voltage
control and reactive power is mandatory for all the system generators.

A response time of 5 s is required and the service must be supported for the period
that is needed. The costs associated with the service are low, since the provision is in
charge of the hydraulic generators, and the transaction mechanism corresponds to
annual contracts at a fixed price.

The suppliers receive an operational payment, only for quantities that exceed the
mandatory range and the consumers’ payment is incorporated in the transmission
tariff. Frequency Control The system frequency is required to be within the range of
49.5 and 50.5 Hz.

The service of primary frequency regulation must be provided within 30 s after being
requested by the system operator and must be supported for the period that is needed.
The required quantity is locally calculated in every country.

This is an obligatory service for all the generation units, where they are required to
keep a droop between 2 and 5%. The transaction mechanism corresponds to annual
contracts. The suppliers get a payment for capacity and other for operation, and the
consumers pay through the transmission tariff.

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For example, Statnett, the system operator in Norway, determines a total amount to
be paid and each generator receives a payment according to its contribution to the
service provision. The service of secondary frequency regulation is only considered
an ancillary service when it is provided in the case of a contingency. For this service,
a response time of 15 minutes and a minimal provision period of 4 hours is required.

The costs associated with secondary frequency regulation are minor, since this
provision is in charge of hydraulic generators. The provision is assured through
competitive offers. The consumers pay through the transmission tariff.

California, USA After the power market crisis of 2001, the Californian ISO (CAISO)
redesigned its electric energy market. It then introduced the concept of available
capacity (ACAP), whose objective is to allow the ISO to verify in advance the
availability of enough resources to satisfy the customer load as well as reserves.

In the new market structure, the energy market, the ancillary service market and the
congestion management market are jointly optimized. Voltage Control In the
California system, the ISO procures reactive power support services on long-term
contracts from reliable must-run generating units.

The actual short-term requirement is determined on a day-ahead basis, after the real
power market is settled and the energy demand and schedules are known. Thereafter
the ISO determines the location-wise amount of reactive power required based on
system power flow analysis. Daily voltage schedules are issued to contracted
generators and the transmission operators within the region.

The generators are mandated to provide reactive power within the power factor range
of 0.90 lag to 0.95 lead. For reactive power absorption / generation beyond these
limits, the generators are financially compensated for, including, a payment if they
are required to reduce their real power output. Frequency Control Primary frequency
regulation and secondary frequency regulation are not mandatory services.

There exists up and down service regulation. The costs associated with this service
correspond to capital, operation, fuel, and reduced efficiency costs, etc. For

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secondary frequency regulation, the service must be available in 10 min and should
be supported for at least 2 hours.

The system operator calculates the quantity required of the service according to a
criteria that takes care of demand and contingency. The quantity required generally
comes close to 3% of the maximum demand of the system. New York, USA In the
New York control area, ancillary services are provided by the New York ISO
(NYISO) or procured by the transmission customers and suppliers themselves. The
NYISO coordinates the provision of all ancillary services and directly arranges for
those services that are not self-supplied.

Ancillary Service Service Pricing Method

Provider

Scheduling System Control NYISO Embedded Cost

and Dispatch based

Embedded Cost

Voltage Support NYISO based

Regulation and Frequenvy NYISO or SS

Response Market based

Energy Reserve NYISO Market based

NYISO or SS Embedded Cost

Ooperating Reserve based

Depending on the nature of the services, either market-based or embedded cost-based

prices are used to price these services.

In Table 6.2, the service provider and pricing method for each service are given.
Transmission customers and suppliers are permitted to self-supply operating reserve
service, regulation and frequency response service.

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They must bid the required resource into ancillary services market. The NYISO
selects the successful bidders to provide each service. The transmission customers
and suppliers with resources selected by the ISO use the revenues that they would
otherwise have received for providing these services, as an offset against charges
they would otherwise need to pay the NYISO for the service.

Table 2: NYISO Ancillary Service details Voltage Control Generating resources,

which operate within their capability limits, are directed by NYISO to produce /
absorb reactive power to maintain voltages within their limits. The pricing method
for the reactive power support service is an embedded cost. The cost of reactive
power support includes the following:

The total annual embedded cost for payment.

Any applicable lost opportunity cost to provide reactive power service.

Total of prior year payments to suppliers of reactive power service less the total of
payments received by the NYISO from transmission customers in the prior year for
reactive power service.

References:
1. https://www.coursehero.com/file/82630594/L24-Ancillary-Services-Ipdf/
2. https://www.scribd.com/document/327947922/Ancillary-Service-Management
3. https://www.jcboseust.ac.in/electrical/images/notes/rps_mtech_01042020.pdf
4. https://studylib.net/doc/5318140/ancillary-services

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