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Title: Loads Providing Ancillary Services: Review of InternationalExperience-- Technical Appendix: Market Descriptions

Abstract

In this study, we examine the arrangements for andexperiences of end-use loads providing ancillary services (AS) in fiveelectricity markets: Australia, the United Kingdom (UK), the Nordicmarket, and the ERCOT and PJM markets in the United States. Our objectivein undertaking this review of international experience was to identifyspecific approaches or market designs that have enabled customer loads toeffectively deliver various ancillary services (AS) products. We hopethat this report will contribute to the ongoing discussion in the U.S.and elsewhere regarding what institutional and technical developments areneeded to ensure that customer loads can meaningfully participate in allwholesale electricity markets.

Authors:
;
Publication Date:
Research Org.:
Ernest Orlando Lawrence Berkeley NationalLaboratory, Berkeley, CA (US)
Sponsoring Org.:
USDOE. Ofc of Electricity Delivery and Energy Reliability.Office of Electric Transmission and Distribution
OSTI Identifier:
926296
Report Number(s):
LBNL-62701
R&D Project: 673327; BnR: TD5002110
DOE Contract Number:
DE-AC02-05CH11231
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
29

Citation Formats

Grayson Heffner, Charles Goldman, Kintner-Meyer, M, and Kirby, Brendan. Loads Providing Ancillary Services: Review of InternationalExperience-- Technical Appendix: Market Descriptions. United States: N. p., 2007. Web. doi:10.2172/926296.
Grayson Heffner, Charles Goldman, Kintner-Meyer, M, & Kirby, Brendan. Loads Providing Ancillary Services: Review of InternationalExperience-- Technical Appendix: Market Descriptions. United States. doi:10.2172/926296.
Grayson Heffner, Charles Goldman, Kintner-Meyer, M, and Kirby, Brendan. Tue . "Loads Providing Ancillary Services: Review of InternationalExperience-- Technical Appendix: Market Descriptions". United States. doi:10.2172/926296. https://www.osti.gov/servlets/purl/926296.
@article{osti_926296,
title = {Loads Providing Ancillary Services: Review of InternationalExperience-- Technical Appendix: Market Descriptions},
author = {Grayson Heffner, Charles Goldman, Kintner-Meyer, M and Kirby, Brendan},
abstractNote = {In this study, we examine the arrangements for andexperiences of end-use loads providing ancillary services (AS) in fiveelectricity markets: Australia, the United Kingdom (UK), the Nordicmarket, and the ERCOT and PJM markets in the United States. Our objectivein undertaking this review of international experience was to identifyspecific approaches or market designs that have enabled customer loads toeffectively deliver various ancillary services (AS) products. We hopethat this report will contribute to the ongoing discussion in the U.S.and elsewhere regarding what institutional and technical developments areneeded to ensure that customer loads can meaningfully participate in allwholesale electricity markets.},
doi = {10.2172/926296},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Tue May 01 00:00:00 EDT 2007},
month = {Tue May 01 00:00:00 EDT 2007}
}

Technical Report:

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  • In this study, we examine the arrangements for and experiences of end-use loads providing ancillary services (AS) in five electricity markets: Australia, the United Kingdom (UK), the Nordic market, and the ERCOT and PJM markets in the United States. Our objective in undertaking this review of international experience was to identify specific approaches or market designs that have enabled customer loads to effectively deliver various ancillary services (AS) products. We hope that this report will contribute to the ongoing discussion in the U.S. and elsewhere regarding what institutional and technical developments are needed to ensure that customer loads can meaningfullymore » participate in all wholesale electricity markets.« less
  • In this study, we attempt to provide a comprehensive examination of various market and policy barriers to demand response providing ancillary services in both ISO/RTO and non-ISO/RTO regions, especially at the program provider level. It is useful to classify barriers in order to create a holistic understanding and identify parties that could be responsible for their removal. This study develops a typology of barriers focusing on smaller customers that must rely on a program provider (i.e., electric investor owned utility or IOU, ARC) to create an aggregated DR resource in order to bring ancillary services to the balancing authority.ii Themore » barriers were identified through examinations of regulatory structures, market environments, and product offerings; and discussions with industry stakeholders and regulators. In order to help illustrate the differences in barriers among various wholesale market designs and their constituent retail environments, four regions were chosen to use as case studies: Colorado, Texas, Wisconsin, and New Jersey. We highlight the experience in each area as it relates to the identified barriers.« less
  • This study provides an examination of various market and policy barriers to demand response providing ancillary services in both ISO/RTO and non-ISO/RTO regions, especially at the program provider level. It is useful to classify barriers in order to create a holistic understanding and identify parties that could be responsible for their removal. This study develops a typology of barriers focusing on smaller customers that must rely on a program provider (i.e., electric investor owned utility or IOU, ARC) to create an aggregated DR resource in order to bring ancillary services to the balancing authority. The barriers were identified through examinationsmore » of regulatory structures, market environments, and product offerings; and discussions with industry stakeholders and regulators. In order to help illustrate the differences in barriers among various wholesale market designs and their constituent retail environments, four regions were chosen to use as case studies: Colorado, Texas, Wisconsin, and New Jersey.« less
  • This report describes methodologies to determine the fixed costs for a steam cycle generating unit to participate in Reactive Supply and Voltage Control (RS-VC), Regulation and Frequency Response (RFR), and Operating Reserve-Spinning (ORS) services. It is intended for use by a Generator of electricity who is planning to offer these ancillary services in a competitive market. The methodology is based on common steam power plant engineering and economic principles. Reactive supply and voltage control provides reactive supply through changes to generator reactive output to maintain acceptable transmission system voltages and facilitate electricity transfers and provides the ability to continually adjustmore » transmission system voltage in response to system changes. Regulation and frequency response service include all rapid load changes whether their purpose is to meet the instantaneous load demand, to balance control area supply resources with load, or to maintain frequency. Spinning reserve is provided by generating units that are on-line and loaded at less than maximum output. They are available to serve load immediately in an unexpected contingency such as an unplanned outage of a generating unit.« less