Market based AGC with online bidding of regulating reserves

This paper describes a concept where marked bidding procedures are included in a closed loop AGC application. The basic idea is to obtain a combination of the efficiency of classic automatic generation control with a decentralized market structure where generators offer their capacity on a commercial basis. The concept consists of a centralized market based distribution algorithm, a local unit PI-controller and a unit schedule coordinator algorithm. This paper focuses on the centralized market and unit schedule coordinator algorithms, based on examples from the Norwegian Regulating Power Market. The algorithms are demonstrated with quasi-steady state simulations.