Ancillary services for smart grids — Power quality markets

The paper addresses the roles and models of ancillary services in future Smart grids. Realization of future Smart grids is enabled by a transition from present day mainly hierarchical and regulated power systems to open market based flexible Smart grids. This transition involves new stakeholders and market opportunities related to primary and ancillary services. We suggest Service Level Agreements (SLAs) as a mechanism to coordinate and monitor primary and ancillary services and stakeholders in s given use/business case. We illustrate our approach with use cases based on Power Quality (PQ) markets with Key Performance Indicators (KPIs) or established PQ indices as coordination and negotiation mechanisms between producers and users of power. Some of our use cases are chosen from the ongoing EU project Grid4EU.