Market monitoring and leader follower incentive control of ancillary services

The problems of market monitoring and the control of ancillary services of a future energy system are presented. We envision that the future system operation of electric power systems will evolve into completely unbundled ancillary service markets that are governed by spot-price signals. The grid operators need to acquire ancillary services through competitive markets for control of the system operation. With the above vision of the future, this paper presents the control of ancillary services based on a frequency regulation/load-following control (LFC) market, a regulated load (RL) market and a base load (BL) market. In the LFC market, the units dispatched for generation must have specific response characteristics as determined by the nature of the system loads. These units are controlled by the grid operator. It is envisioned that LFC will be multi-time-scale and decentralized. In the RL market, the units dispatched for generation do not participate in LFC. These units are dispatched for a specific period of time for regulating the system load. The BL units are dispatched daily to satisfy the BL of the day on a weekly or monthly basis. The locational market power associated with generators participating in LFC and in RL is even move critical than that for generators participating in satisfying the BL since these units are required for frequency regulation, voltage support and relief of overload conditions. To create an efficient market for these services, we propose and formulate the use of incentive leader-follower strategies for the BL, RL and LFC markets.