Feasible Strategy for Allocating Cost of Primary Frequency Regulation

Among the ancillary services, a great number of cost allocation strategies have been broadly developed in the deregulated environment. Generally, the utilization of such services can be determined by directly evaluating the actual amount of the usage or by indirectly analyzing the fair/reasonable contribution/attribution to the market participants. In the case of the primary frequency regulation (PFR) service, which is operated by the participating generating units to maintain the real-time balance between the generation and load, the discussion of the PFR service attributed to the load side has still received relatively little attention. In this paper, a new strategy of the cost allocation of the PFR service from the customer side is proposed. Two main factors, the load fluctuation and the frequent demand change, are considered to figure out the PFR reaction relating to the different substations. The design of a scheme for determining the cost allocation index of the PFR service can be applied to the presently exiting power market. In addition, the actually load series recorded from the extra-high voltage (EHV) substations of the Taipower system located in northern, central, and southern Taiwan are meticulously analyzed and utilized to verify the feasibility and practicability of cost allocation.