Market for Auxiliary Services in Power Systems Considering Inertia Requirements

In the face of an imperative global call to mitigate carbon emissions, numerous nations and regions have pledged to achieve the ambitious targets of the “dual carbon” initiative. This transformative agenda is marked by a concerted effort to diminish dependence on fossil fuels, particularly coal, while concurrently augmenting the adoption of renewable energy sources such as wind and solar power. Nevertheless, the incremental integration of renewable energy sources into the power grid presents a notable challenge, specifically i n t he r ealm o f m aintaining the rotational inertia essential for system stability. The capacity market has thus become a critical regulatory instrument, essential for safeguarding the dependable functioning of power systems amidst the dynamic shifts in energy infrastructure and the inherent variability in demand. By integrating considerations of rotational inertia into the operational fabric of the market, key stakeholders are equipped to navigate the imperatives of stable frequency regulation, which is pivotal during the transition to a more sustainable energy paradigm. This scholarly inquiry offers a c omprehensive e xamination of the capacity market's development, its operational mechanisms, and its strategic significance in fortifying the grid's stability and resilience. The analysis is conducted within the context of an expanding penetration of renewable energy, highlighting the indispensable role of the capacity market in the evolving energy landscape of the contemporary era.