Research on Provincial Regulation Ancillary Service Market of China under the New Round of Electricity Reform

Power systems operating with security and safety is the primary goal of system operator. Regulation is an important reliability service that refers to resource capability under Automatic Generator Control (AGC) which is moved to correct for load or generation changes that causes an energy imbalance. "No. 9 Government Document", which symbolizes the full development of China's new round of power system reform, clearly put forward the establishment of ancillary service market. Implementing a regulation market would provide participants with a market-based system for the purchase and sale of the regulation ancillary service, which helps improve wind power integration ability and the system operation. This paper aims at investigating the situation and status of provincial regulation market, which is beneficial to design an efficient regulation market. The comparisons between China's regulation ancillary service markets are made. Based on the experience and research of the process of regulation market development, the key questions of designing a regulation market is proposed and discussed.