Limitations in the design of ancillary service markets imposed by communication network delays

Real-time balancing of the European electricity grid will become increasingly dependent on market-based control mechanisms that are enabled by connecting millions of prosumers to an open communication network. The use of communication systems inevitably introduces delays in the energy balancing control loop, which could endanger market operation and stability of the electricity grid. By investigating the interaction between price-based control algorithms for real-time balancing and information and communication technology, we aim to provide systematic design rules for unrestricted ancillary service markets.