Value of Interconnectors Operating in Simultaneous Energy-Frequency Response Markets

This paper investigates the potential contribution that interconnectors can provide to efficiently support the security of interconnected power systems. The proposed modelling setup introduces a radical paradigm shift in the operation of the interconnectors and in their interactions with multiple markets. To the best of our knowledge, this is the first paper that models a simultaneous allocation of the interconnector capacity for the exchange of energy and of inertia-dependent primary frequency response. The benefits and impact of this new methodology are evaluated with typical market indicators (e.g., social welfare and interconnector revenues) under two different paradigms: a centralized approach where the interconnectors are operated to minimize the system operational cost and a market-based framework where the interconnectors are privately-owned assets with self-interested objectives. By modelling the interconnectors as price-maker, the proposed work quantifies the potential inefficiencies of market solutions while considering key elements such as capacity withdrawing. A case study of the GB-France systems assesses the value of interconnectors on system efficiency and security under the considered paradigms.

Automated summary

This paper investigates the potential contribution of interconnectors to support the security of interconnected power systems. The proposed modeling setup introduces a new paradigm shift and evaluates the impact on market indicators. By modeling interconnectors in the market, the potential inefficiency of market solutions is quantified, and the value of interconnectors on system efficiency and security is assessed through a case study.