Research On AGC Auction Market Considering Energy Storage Devices

Regulation service is an important means to maintain safe and stable operation of power system, and ensure quality requirements of frequency. The development of grid size and new energy generation demands for regulation service with higher efficient and lower cost. Energy storage system which can respond quickly and accurately gets much attention. Moreover, with the promoting of China’s power market, the demand of establishing regulation market becomes increasingly urgent. In this paper, issues related to AGC auction market is studied with the purpose of encouraging high performance unit to participate in regulation service.This article first describes the current situation of "Two Rules" management approach in North China, analyzes limitations of the existing K evaluation system and compensation mechanisms, and makes proposals of broadening applicable standards, compensating according to the actual amount of regulation task and establishing auction market. Second, analyze feasibility of different regulation modes based on superiority of energy storage in regulation and new design of regulation markets in America, and present a more universal evaluation method which solves the problem of rule absence. Then project an auction market, including organization mode, units scheduling model, cost analysis and market processes, which can be applied in North China. In this process, post decision scheduling model is simplified, greatly reducing the solving steps; the concept of regulation mileage is introduced to make cost accounting and clearing more fair and reasonable, since regulation capacity and actual regulation amount are both taken into consideration; original offers are adjusted so that the final ranking can comprehensively reflect the cost and performance of units, therefor playing a positive role in improving overall regulation ability of the system. Finally, chose some typical units in North China to simulate the auction process, and verify that theoretical methods and design ideas presented in this paper are effective.The study of this paper has very important theoretical significance and practical value in improving the present "Two Rules" management approach and setting up an AGC auction market which is suitable for North China.