Provision And Costs of Ancillary Services in a Restructured Electricity Marquet.

Abstract

Power industry has been experiencing dramatic changes from a vertically integrated industry into a deregulated competitive electricity market over the last decade. In a restructured electricity industry, markets govern the operation and expansion of electricity generation, and power plants make profits from markets for energy and ancillary services. In the last years there has been a worldwide trend toward restructuring the electricity supply industry and consequently energy markets were created. Ancillary services are defined as all those activities on the interconnected grid that are necessary to support the power transmission and withstand the security operation as well as the power quality level.

This paper presents the most important ancillary services provided by the independent system operator in a restructured power system. It will be also described the Simultaneous Optimisation algorithm to performer the active power reserves dispatch in a competitive environment.