Assessing the Value of Regulation Resources Based on Their Time Response Characteristics

Fast responsive generation, demand control and energy storage are valuable power system regulation resources because they allow controls to be applied at the exact moment and in the exact amount needed. Faster control could potentially provide more reliable compliance with the North American Electric Reliability Corporation (NERC) Control Performance Standards (CPS) [1] at relatively lesser regulation capacity procurements. The current California Independent System Operator (ISO) practices and markets do not provide a differentiation among the regulation resources based on their speed of response (with the exception of some capacity bid limitations applied to generators with minimum ramping capability). California ISO practices and markets could be updated to enable more fast regulation resources into the California ISO service area.