Abstract
Many electricity markets now co-optimize production and pricing of ancillary services such as contingency reserve and regulation with that of energy. This approach has proved successful in reducing ancillary service costs and in providing consistent pricing incentives for potential providers of both energy and ancillary services Here we discuss the basic concepts involved, the optimization formulations employed to clear such co-optimized markets, and some of the practical issues that arise.
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© 2010 Springer-Verlag Berlin Heidelberg
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Read, E.G. (2010). Co-Optimization of Energy and Ancillary Service Markets. In: Pardalos, P., Rebennack, S., Pereira, M., Iliadis, N. (eds) Handbook of Power Systems I. Energy Systems. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-02493-1_13
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DOI: https://doi.org/10.1007/978-3-642-02493-1_13
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