Fair Cost Allocation Mechanism for Ramping Ancillary Services Based on Responsibility Coefficients

In the future market operation of new power systems, establishing a fair and reasonable cost allocation mechanism for ramping ancillary services is crucial. Such a mechanism would incentivize both the generation and load sides to reduce ramping demands. It will also promote the active participation of flexible resources across ramping services. However, the ramping ancillary service market currently piloted in Shandong, China, exhibits significant shortcomings. Net load volatility and uncertainty have increased the ramping service demand. Yet load-side Users, as beneficiaries, do not share the costs. Meanwhile, flexible units that wish to provide service still bear costs even if they fail to win bids. This violates the “who triggers, who pays” principle. To address this, this paper proposes a fair cost allocation mechanism based on ramping responsibility coefficients of market entities. First, a source-load ramping demand assessment model is developed. It quantifies both deterministic demand from net load variations and uncertain demand from net load forecast errors. Second, a two-layer cost allocation model is constructed using source-load ramping responsibility coefficients. In the first layer, system attribution is performed: initial allocation of ramping service costs is based on the responsibility share of each component—net load variations, load forecast deviations, and renewable energy forecast deviations—in total ramping demand. The second layer—responsibility-retrospective allocation—further assigns these costs by source: costs from net load change are allocated to power Users and renewable energy units; costs from load forecast errors and renewable forecast errors are assigned to the power Users and renewable energy units, respectively. For costs from renewable forecast errors, a differentiated allocation method is designed based on the deviation between declared and actual forecast errors. Case study results show that the proposed mechanism improves fairness and traceability in ramping cost allocation. It offers a market-based reference and supports the development of ramping ancillary service markets.

Authors

Institutions

Publication Details

Journal
Electronics
Published
2026-04-29
DOI
https://doi.org/10.3390/electronics15091891
Primary Topic
Electric Power System Optimization
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Fair Cost Allocation Mechanism for Ramping Ancillary Services Based on Responsibility Coefficients

Yuanhang Zhang, Xianshan Li
Electronics
Electric Power System Optimization
article

Fair Cost Allocation Mechanism for Ramping Ancillary Services Based on Responsibility Coefficients

Yuanhang Zhang, Xianshan Li
article en

Abstract

In the future market operation of new power systems, establishing a fair and reasonable cost allocation mechanism for ramping ancillary services is crucial. Such a mechanism would incentivize both the generation and load sides to reduce ramping demands. It will also promote the active participation of flexible resources across ramping services. However, the ramping ancillary service market currently piloted in Shandong, China, exhibits significant shortcomings. Net load volatility and uncertainty have increased the ramping service demand. Yet load-side Users, as beneficiaries, do not share the costs. Meanwhile, flexible units that wish to provide service still bear costs even if they fail to win bids. This violates the “who triggers, who pays” principle. To address this, this paper proposes a fair cost allocation mechanism based on ramping responsibility coefficients of market entities. First, a source-load ramping demand assessment model is developed. It quantifies both deterministic demand from net load variations and uncertain demand from net load forecast errors. Second, a two-layer cost allocation model is constructed using source-load ramping responsibility coefficients. In the first layer, system attribution is performed: initial allocation of ramping service costs is based on the responsibility share of each component—net load variations, load forecast deviations, and renewable energy forecast deviations—in total ramping demand. The second layer—responsibility-retrospective allocation—further assigns these costs by source: costs from net load change are allocated to power Users and renewable energy units; costs from load forecast errors and renewable forecast errors are assigned to the power Users and renewable energy units, respectively. For costs from renewable forecast errors, a differentiated allocation method is designed based on the deviation between declared and actual forecast errors. Case study results show that the proposed mechanism improves fairness and traceability in ramping cost allocation. It offers a market-based reference and supports the development of ramping ancillary service markets.

ElectronicsVol. 15(9)
China Three Gorges University (CN)
Openalex Percentile: Top 10%
Electric Power System Optimization
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.

Fair Cost Allocation Mechanism for Ramping Ancillary Services Based on Responsibility Coefficients — Yuanhang Zhang, Xianshan Li · Electronics (2026) | TGRS Research Map | TGRS