Utilization of Demand Side Generation in Secondary and Tertiary Reserve Mechanisms of Island Power Systems

A significant issue that the operators of power systems have to handle is the management of Ancillary Services (AS). This issue becomes much more difficult in autonomous island power systems where the needs for AS provision are higher due to the wider frequency deviations. Therefore, the operators of such systems are not only responsible to manage AS resources but also to ensure the availability of AS capacity. In this paper, the regulatory and remuneration framework for the utilization of Demand-Side Generating Assets (DSGAs), as a technique of AS provision is proposed. The basic reason for proposing this approach is the fact that these assets are already available; hence rather limited capital resources are required for their exploitation. Greek Non-Interconnected Island Systems (NIIS) are used as a case study for DSGAs' participation in secondary and tertiary reserve mechanisms. Hence, the scope of this paper is to introduce a regulatory framework for the utilization of this alternative category of AS suppliers, in terms of autonomous or weak interconnected island power systems. Finally, by demonstrating a power flow analysis, this paper aims to verify the effect of DSGAs in island power systems' operation compared with the existing strategy of centralized gensets' rental.