A novel strategy for allocation cost of automatic generation control in electricity market environment

In electricity market environment, power generation, transmission and consumption become self-governed economy entities. The change of supply and demand for these market partners can result in the need for automatic generation control (AGC) ancillary service. So the AGC cost should be allocated among them. In our country, the amount of AGC is ascertained on the base of the control area, it is difficult to quantify the influence of each area load on the area´s AGC cost. In this paper, a new strategy of the AGC cost allocation on the customer side is proposed. The load curves of a single load and a control area are investigated and decomposed, then an AGC demand curve is got, which can reflect the AGC costs. Four indexes, which describe the quantity and the characteristics of AGC demands of each load, are considered and the allocation method is determined. An example is calculated, which verifies the feasibility, practicability and fairness of cost allocation.