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2004 [EEE Inerational Conference on Fletic Unity Deregulation, Restructuring and Power Technologies (DRPT2004) April 2008 Hong Kong. Forecasting and Procurement of AGC Capacity Requirement in Electricity Market Environment Zhen Wang!, Xueshun Zhao, Fushuan Wer’, Degiang Gan’, Minxiang Huang’, Weizhen Sun? (0: Zhejiang University, Hangzhou 310027, China:) (2: The University of Hong Kong, Hong Kong, China;) G. Zhejiang Provincial Blectric Power Dispatching and Abaract: Automatic generation control (AGC) Is ene of the ancillary services (AS). IC plays an important role In maintaining system frequency and scheduled tiedine interchange power within specified domains. A new famework for forecasting and procuring AGC capacity a8 to well balance the economic efficiency and system security inthe competitive electricity market environment presented in this paper. First, the load deviation percentage is obtained for each studied trading perid bad of historical data and used Lo make a preliminary tstimation of AGC capacity requirement, and then stent model { developed to refine the je relevant factors such as the andard (CPS), units’ regulation control performance capabilites and load forecast errors into account. A procuring mechaniimn of the AGC capacity is ext presented by trading off betneen penalties for tetine mas und costs of AGC capacity 1 numerical example based on 1 historical data of Zhejiang Provincial Eleetrcity Market served for demonstrating the enential features of the proposed model and method. Kepwords: Eletielty market; _anellary servi fuomatic generation control (AGC); forecasting and Dracurement of AGC capacity 1. xrnopuerion To optimize the allocations of resources, a regional power system typically has encray exchange schedules ‘through te-lines with neighborhood systems. Since bulk power systems must keep a continuous and near instantaneous balance between generation and load, automatic generation comrol (AGC), as one of ancillary services (AS) is required to maintain system frequency and ie-line interchange power within required limits]. Tn competitive electricity markets, accurate forecasting and adequate procurement of the AGC capacity requirement are important issues to be dealt with, asi is required to maintain system security as well as o accommodate economically efficient transactions in ‘4 posier system, Curious enough, litle abou it has been done and reported in literature concering this topic. In real work! power pools the operators” wisdom is typically used to answer the above question, and the AGC capacity requirement is generally specified to be from 1% to.5% ofthe toil system load. For example, the AGC capacity requirement in the PIM power pool is 0-7803-8237-404/S17.00020061EEE | Communication Center, Hangzhou 310007, China) specified 0 be 1% of system load while an AGC ‘capacity requirement table is empirially set up i the New England power pool, ERCOT has developed and used a similar method for detennining the amounts of ‘AGC regulating. capacity required(2). In CabTSO, the Day Ahead Grid Resource Coordinators using a single form in an Access Database can execute the methodology to procure the required regulation capacity[3}. One characterisic of these approaches is that they are mainly based on rules of thumb by taking account of reliability rules, and economic efficiency is ‘ot considered in the context of competitive electricity ‘markets. Thus a quantitative approach for determining AGC capacity requirement with economic efficiency taken into account is therefore of much interes 'A new framework to forecast and procure AGC capacity 50 88 10 well Balance the economic efficiency and system security in a competitive electricity market tnviroament is presented in this paper. Firs, the load

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