MINIMIZING REGULATION COSTS IN MULTI-AREA MARKETS

Abstract- In a power system with many fast and/or large changes in the generation or the consumption, for example in a system with large amounts of wind power, the frequency control is more complicated to handle efficiently. Minimiz-ing regulation costs for the system operator in such a sys-tem requires the possibility to simulate the frequency con-trol, but the existing methods for calculations are neither ef-ficient enough with respect to computation time nor accurate enough. This paper shows how the frequency control can be optimized, thereby reducing the regulation costs, using a multi-area model combined with a DC load flow. The multi-area modeling is described and the optimization is applied to a numerical example