IEEE Power & Energy Magazine - September/October 2021 - 37

each option, the use of a demand curve constructed from
historical forecast errors may inform the efficient level of
reserve and firm the availability to acquire it [Figure 4(b)].
These options are being developed for possible NEM implementation
in the next two years. Decisions on a final preferable
new market will be based on tradeoffs between operator
confidence, market efficiencies, and potential adverse
impacts on the energy spot market.
Frequency Management
This class of services encompasses the need to schedule
reserves of energy capacity that respond to unexpected changes
in the load-generation balance (in addition to synchronous
inertia, which will be discussed). There are two broad categories
to consider:
1) regulation reserves: responding to ongoing and smaller
imbalances, primarily due to variations in demand
and generation from intermittent sources
2) contingency reserves: responding to sudden and very
large disturbances, such as the loss of a major generation
unit.
Under assumptions of reasonable connectivity and system
strength, frequency management can be sourced from any
network location. Much like the case of standard energy supply,
this global pool of resources lends itself to procurement
via a centralized, co-optimized spot market (energy dispatch
can be considered a very slow class of frequency control).
However, the desire for a universal and highly optimized market
design must be carefully weighed against the complexities
and irregularities this can create in a physical system.
Demand
Solar
Wind
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
-800 -600 -400 -200 0 200 400 600
30-Min Forecast
Error (MW)

IEEE Power & Energy Magazine - September/October 2021

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