Ancillary Service Market design and implementation in North America: From theory to practice

This paper discusses the design and implementation of ancillary service markets (ASM) in North America. In a deregulated environment, ancillary service markets are the essential components of modern wholesale electricity markets from both economic and system reliability perspectives. A unified framework for competitive electricity market and grid reliability based on the duality theory is discussed. Experiences of applying the theory of optimization to develop practical optimization- based applications for electricity market operation are shared. Specifically, a summary of the ancillary service markets of several US electricity markets including ISO New England, New York ISO, PJM and Midwest ISO is provided.