Opening of Ancillary Service Markets to Distributed Energy Resources: A Review

Abstract

Electric power systems are moving toward more decentralized models, where energy generation is performed by small and distributed power plants, often from renewables. With the gradual phase out from fossil fuels, however, Distribution Energy Resources (DERs) are expected to take over in the provision of all regulation services required to operate the grid. To this purpose, the opening of national Ancillary Service Markets (ASMs) to DERs is considered an essential passage. In order to allow this transition to happen, current opportunities and barriers to market participation of DERs must be clearly identified. In this work, a comprehensive review is provided of the state-of-the-art of research on DER integration into ASMs. The topic at hand is analyzed from different perspectives. First, the current situation and main trends regarding the reformation processes of national ASMs are analyzed to get a clear picture of the evolutions expected and adjustment required in the future, according to the scientific community. Then, the focus is moved to the strategies to be adopted by aggregators for the effective control and coordination of DERs, exploring the challenges posed by the uncertainties affecting the problem. Coordination schemes between transmission and distribution system operators, and the implications on the grid infrastructure operation and planning, are also investigated. Finally, the review deepens the control capabilities required for DER technologies to perform the needed control actions.

Battery Energy Storage System Performance in Providing Various Electricity Market Services

“…However, in 2017 a series of pilot projects were initiated by the Italian National Regulatory Authority (NRA), ARERA, to gradually evolve the provision of ancillary services by Non-Programmable Renewable Energy Sources (NP-RES). Different pilot projects have been activated with the purpose of investigating the possibility of Enabled Virtual Units (Unità Virtuali Abilitate: UVA) to participate in the ancillary services provision [31]. The ancillary services allowed to be provided by DERs were limited to mFRR and RR, with a minimum bid size of 1 MW [32].…”

Digitalization Processes in Distribution Grids: A Comprehensive Review of Strategies and Challenges

“…The transition to renewable energy emphasizes the need for software that manages flexible resources in ancillary service markets (ASMs). The research in [209] explores integrating DRESs into ASMs, focusing on overcoming grid challenges through P2P market designs [132]. It stresses the importance of legislative adaptability, the technical readiness of DERs, and advanced control strategies for effective ASM participation.…”

Decentralised Voltage Regulation through Optimal Reactive Power Flow in Distribution Networks with Dispersed Generation

“…The best solution to cope with the rhythm of the energy transition resides in adequate control strategies of distributed generators. In this regard, DSOs developed various voltage controls to improve voltage quality over MV/LV grids: centralised control, decentralised autonomous control (or local), and decentralised coordinated control [29][30][31]. DSOs, which implement centralised control, send command signals to DERs [32], OLTCs, or STATCOMs [33]; they act as central coordinators and network supervisors in the centralised mechanism, communicating with all the network agents to fully exploit the resources' flexibility.…”