Simultaneous service allocation by average sensitivity method

Ancillary services and other interconnected services are important especially in a competitive operation environment. Since these services are costs related, they should be allocated in order to send the correct price signal to market participants. An average sensitivity method is proposed for allocating services to simultaneous transactions. It can provide results close to power flow-based methods, while requiring as little computational time as traditional sensitivity-based approaches. Except for rare cases, it satisfies the requirement of allocation quantity, allocation ratio, and application feasibility. Test results indicate that the average sensitivity method is a successful allocation algorithm.