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Ancillary Services in Power System Transition Toward a 100% Non-Fossil Future: Market Design Challenges in the United States and Europe

Author

Listed:
  • Luigi Viola

    (University of Campinas, Campinas-SP, Brazil)

  • Saeed Nordin

    (KTH Royal Institute of Technology, Stockholm, Sweden)

  • Daniel Dotta

    (University of Campinas, Campinas-SP, Brazil)

  • Mohammad Reza Hesamzadeh

    (KTH Royal Institute of Technology, Stockholm, Sweden)

  • Ross Baldick

    (University of Texas at Austin, Austin, TX, USA)

  • Damian Flynn

    (University College Dublin, Dublin, Ireland)

Abstract

The expansion of variable generation has driven a transition toward a 100\% non-fossil power system. New system needs are challenging system stability and suggesting the need for a redesign of the ancillary service (AS) markets. This paper presents a comprehensive and broad review for industrial practitioners and academic researchers regarding the challenges and potential solutions to accommodate high shares of variable renewable energy (VRE) generation levels. We detail the main drivers enabling the energy transition and facilitating the provision of ASs. A systematic review of the United States and European AS markets is conducted. We clearly organize the main ASs in a standard taxonomy, identifying current practices and initiatives to support the increasing VRE share. Furthermore, we envision the future of modern AS markets, proposing potential solutions for some remaining fundamental technical and market design challenges.

Suggested Citation

  • Luigi Viola & Saeed Nordin & Daniel Dotta & Mohammad Reza Hesamzadeh & Ross Baldick & Damian Flynn, 2023. "Ancillary Services in Power System Transition Toward a 100% Non-Fossil Future: Market Design Challenges in the United States and Europe," Papers 2311.02090, arXiv.org.
    • Handle: RePEc:arx:papers:2311.02090
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    References listed on IDEAS

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