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describe basic contracting for ancillary services.

describe basic contracting for ancillary services.

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Ancillary services ie electric power services , are various operations that are required to maintain gird stability and security. like, frequency control, operating services and spinning reserves, beyond generation and transmission.

  1. Ancillary services are arranged by a system operator through centralized procurement. it can be purchased by way of contracts, short term markets or a combination of both.
  2. most of the costs of the system are in the wholesale trading of electricity and congestion management.
  3. Ancillary services markets require major input to develop and difficult to implement effectively.
  4. There is no dominant model for the procurement of ancillary services.
  5. The spot markets that exist have been susceptible to market power.
  6. international experience suggests that if markets for ancillary services are to be adopted they should be phased in gradually.
  7. while there is a trend toward market based contracts , cost based contracts have been perceived as a good starting point to evolve into market based contracting.
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