Design of Load Frequency Control Market in Japan and Economic Evaluation of Grid-Scale Batteries

In the past few years, Japanese government has decided to implement the Electricity Market Reform in Japan. According to that reform, legal unbundling will take place from 2020. Before that year, some utilities have a responsibility to keep the quality of electricity high. However, after unbundling, Transmission System Operator should ensure the ability of control by itself. Thus, we need to design the ancillary service market to ensure the quality of electricity. In this study, this new ancillary service market in Japan is proposed. In addition to that, through some case studies, the economic feasibility of the battery system is analyzed with an economic index called Net Present Value (NPV). The market optimization results show that the price of electricity procurement and that of ancillary service market behave conversely in the daytime. In one case with nuclear power plants regulated, NPV gets worse by 34 % because the price of regulation gets lower. For my future work, more detail analysis will be needed to estimate the economic feasibility more accurately.