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Title: Loads Providing Ancillary Services: Review of International Experience

Abstract

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 meaningfully participate in all wholesale electricity markets.

Authors:
; ;
Publication Date:
Research Org.:
Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
Sponsoring Org.:
Environmental Energy Technologies Division
OSTI Identifier:
941062
Report Number(s):
LBNL-62701-Final
TRN: US200825%%584
DOE Contract Number:
DE-AC02-05CH11231
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
29; ELECTRICITY; MARKET; LAWRENCE BERKELEY LABORATORY; ancillary services

Citation Formats

Heffner, Grayson, Goldman, Charles, and Kintner-Meyer, Michael. Loads Providing Ancillary Services: Review of International Experience. United States: N. p., 2007. Web. doi:10.2172/941062.
Heffner, Grayson, Goldman, Charles, & Kintner-Meyer, Michael. Loads Providing Ancillary Services: Review of International Experience. United States. doi:10.2172/941062.
Heffner, Grayson, Goldman, Charles, and Kintner-Meyer, Michael. Tue . "Loads Providing Ancillary Services: Review of International Experience". United States. doi:10.2172/941062. https://www.osti.gov/servlets/purl/941062.
@article{osti_941062,
title = {Loads Providing Ancillary Services: Review of International Experience},
author = {Heffner, Grayson and Goldman, Charles and Kintner-Meyer, Michael},
abstractNote = {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 meaningfully participate in all wholesale electricity markets.},
doi = {10.2172/941062},
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 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.
  • 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
  • In an earlier project, we analyzed data on total system load as well as the loads of eight large industrial customers (Kirby and Hirst 2000). We analyzed these data in terms of system and customer-specific requirements for two real-power ancillary services, regulation and load following. We conducted these analyses using 12 days of data from February 1999 plus 12 days of data from August and September 1999. The project discussed here focused on the supply side (provision) of these two services. Specifically, we examined the output of this control area's generation resources, in aggregate and by unit. We analyzed themore » performance of these generating units in two ways. First, we analyzed the contribution of these generators to overall system performance [generally relative to the North American Electric Reliability Council (NERC) standards]. Second, we analyzed performance relative to what the control center requested of the generators.« less
  • With large-scale plans to integrate renewable generation driven mainly by state-level renewable portfolio requirements, more resources will be needed to compensate for the uncertainty and variability associated with intermittent generation resources. Distributed assets can be used to mitigate the concerns associated with renewable energy resources and to keep costs down. Under such conditions, performing primary frequency control using only supply-side resources becomes not only prohibitively expensive but also technically difficult. It is therefore important to explore how a sufficient proportion of the loads could assume a routine role in primary frequency control to maintain the stability of the system atmore » an acceptable cost. The main objective of this project is to develop a novel hierarchical distributed framework for frequency based load control. The framework involves two decision layers. The top decision layer determines the optimal gain for aggregated loads for each load bus. The gains are computed using decentralized robust control methods, and will be broadcast to the corresponding participating loads every control period. The second layer consists of a large number of heterogeneous devices, which switch probabilistically during contingencies so that aggregated power change matches the desired amount according to the most recently received gains. The simulation results show great potential to enable systematic design of demand-side primary frequency control with stability guarantees on the overall power system. The proposed design systematically accounts for the interactions between the total load response and bulk power system frequency dynamics. It also guarantees frequency stability under a wide range of time varying operating conditions. The local device-level load response rules fully respect the device constraints (such as temperature setpoint, compressor time delays of HVACs, or arrival and departure of the deferrable loads), which are crucial for implementing real load control programs. The promise of autonomous, Grid Friendly™ response by smart appliances in the form of under-frequency load shedding was demonstrated in the GridWise Olympic Peninsula Demonstration in 2006. Each controller monitored the power grid voltage signal and requested that electrical load be shed by its appliance whenever electric power-grid frequency fell below 59.95 Hz. The controllers and their appliances responded reliably to each shallow under-frequency event, which was an average of one event per day and shed their loads for the durations of these events. Another objective of this project was to perform extensive simulation studies to investigate the impact of a population of Grid Friendly™ Appliances (GFAs) on the bulk power system frequency stability. The GFAs considered in this report are represented as demonstration units with water heaters individually modeled.« less