ABSTRACT
To maintain power system reliable operation, the system operator needs to procure some basic services, such as frequency regulation, operation reserves, reactive power support and voltage control, and black start, and so on from generators. In an electricity market, generation companies sell electricity (in MWh) in the energy market. They are expected to be financially compensated for providing such services to the system. In an electricity market, these services are called for and procured by the system operator in the ancillary service market. In this chapter, we first introduce the classifications of ancillary services. Then, we discuss regulation service (or balancing service) markets for both nodal pricing- and zonal pricing-based electricity markets. Performance-based regulation service markets are also discussed. The optimization market models for reserve service market and reactive power market are proposed and presented in this chapter.
