Design of the reserve ancillary service market mechanism for the micro-grid with energy storage

In this paper, the foundation of the micro-grid anciliary service market is introduced and some basic assumptions are made. In view of the reserve ancillary service market, the market participants are analyzed, the benefits of energy storage providing reserve generation are modeled, including the reserve capacity benefit and reserve generation benefit, and the optimal clearing mechanism of the reserve ancillary service market is designed to minimize the customers' total expense for reserve capacity. The example shows that the participation of energy storage and demand response in the ancillary service market is helpful to reduce the total costs of the ancillary service market.