A Review of Supervision Measures in the US Ancillary Service Markets and Suggestions for China

Abstract

The new round of reform of power systems in China brings out the implementation opinions on establishing relatively independent power trading institutions and standardized operations. To ensure the stability of the market operation during the transition stage of the low-carbon power system, supervision methods for market adjustment models and adjustment mechanisms are of vital importance. To handle the uncertainties and fluctuations of renew ables, the construction of ancillary service markets has drawn special attention. However, the supervision methods for ancillary service markets in China are lacking. As one of the earliest countries in the world to carry out the reform of the electricity market, the supervision system of the US electricity market is relatively mature, which can provide enlightenment to the establishment of China's supervision system. With this in mind, the current supervision system of the US electricity market is reviewed from the perspectives of power regulators and supervision content and measures in this paper. The evolution of the regulatory structure of the US electricity market is reviewed and supervision measures of various types of ancillary services markets are introduced and analyzed. Then, based on the construction status of ancillary service markets in various provinces in China, the supervision suggestions for ancillary service markets are proposed.