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Barriers to entry in frequency-regulation services markets: Review of the status quo and options for improvements

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  • Borne, Olivier
  • Korte, Klaas
  • Perez, Yannick
  • Petit, Marc
  • Purkus, Alexandra

Abstract

As the share of intermittent renewable energy sources increases, it will be necessary to increase the volume of frequency-regulation reserves. New sources of reserves can be found in distributed energy resources: controllable loads, Electric Vehicles (EVs), distributed generation units. However, it is necessary to adapt the frequency-regulation reserve market design to allow these new resources to participate through new market players known as “aggregators”. The aim of this paper is to provide a modular framework to analyze frequency regulation markets or mechanisms in order i) to identify barriers to entry for aggregators and ii) to identify some options to overcome these barriers. A case study of the situation in 2016 of four major European frequency regulation markets is performed to show how this framework could be used by aggregators or policy-makers.

Suggested Citation

  • Borne, Olivier & Korte, Klaas & Perez, Yannick & Petit, Marc & Purkus, Alexandra, 2018. "Barriers to entry in frequency-regulation services markets: Review of the status quo and options for improvements," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 605-614.
    • Handle: RePEc:eee:rensus:v:81:y:2018:i:p1:p:605-614
    DOI: 10.1016/j.rser.2017.08.052
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