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Source: Smith et al. 2007 Figure I.1. An Illustration of the Time Scale for Ancillary Services Grid operators in the western United States estimated the additional ancillary service requirements to accommodate future large intermittent renewable resource integrations into the existing grid. The Bonneville Power Administration (BPA) performed a wind integration analysis in 2007 that indicated regulation requirements must be increased by about 50 MW, load following services by 210 MW, and contingency reserves by about 40 MW to accommodate 3 GW of additional wind capacity in the BPA footprint (NWPPC 2007). The California Independent System Operations (ISO), in a recent wind integration study, suggested that for a 20% renewable portfolio standard (RPS) to be realized, anywhere from 900 to 1500 MW of 3-hour ramping capability needed to be contracted; regulation capacity requirements would increase by 170 to 250 MW for ramp-up and 100 to 500 MW for ramp-down services (CAISO 2007). In 2007, the Federal Energy Regulatory Commission (FERC) directed the ISO/Regional Transmission Organizations (RTOs) to increase the transparency and openness of the transmission grid, facilitate access to new generating resources, and eliminate discriminatory practices that include the provision of ancillary services (FERC 2007). In 2008, the New York ISO initiated a market integration effort specifically designed for energy storage resources to provide regulation services. In 2008, the ISO New England changed its market rule (Market Rule 1) to remove the barriers that prevent non-generating resources from participating in regulation and frequency response services (CAISO 2009). The Midwest ISO has proposed the creation of a new resource type, termed a stored energy resource, and proposed a set of operating parameters that are unique for this new resource. PJM Interconnect was the first U.S. RTO that offered load customers an option to participate in ancillary services, as early as 2006 (PJM 2006, 2009). Primarily large industrial load customers above a 1-MW threshold, such as aluminum smelters, showed interest in this market. Alcoa Inc. coordinated with the Midwest ISO to demonstrate, at its Warrick facility in southern Indiana, the provision of up to 15 MW of regulation services, the role that demand response can play in regulation services (Todd et al. 2009). I.2PDF Image | The Smart Grid: An Estimation of the Energy and CO2 Benefits
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