Title: Consideration of energy market for high proportion of wind power with trading mechanism for the frequency regulation ancillary market

Authors: Yuwei Wang; Jing Wang; Boqiang Li; Yong Wang

Addresses: Economic and Technical Research Institute of State Grid Jilin Electric Power Co., Changchun, 130000, China ' Economic and Technical Research Institute of State Grid Jilin Electric Power Co., Changchun, 130000, China ' Economic and Technical Research Institute of State Grid Jilin Electric Power Co., Changchun, 130000, China ' Economic and Technical Research Institute of State Grid Jilin Electric Power Co., Changchun, 130000, China

Abstract: As the penetration of wind and other clean energy sources increases, their uncertainty exacerbates the imbalance between supply and demand for frequency regulation resources. Traditional clearing mechanisms for energy and frequency regulation face issues such as capacity crowding and excessive reliance on thermal power flexibility. Focusing on wind-dominated power markets, this paper compares the PJM and CAISO market mechanisms in the United States and integrates current renewable energy integration and trading practices. A frequency regulation market clearing model is proposed in which generators incorporate opportunity costs into their offers, and two clearing frameworks - joint and sequential - are developed for energy and frequency regulation markets. Case studies based on the proposed model analyse the effects of different renewable penetration levels on market efficiency. Results show that under high penetration, the joint clearing model significantly reduces total system cost and wind curtailment through global resource optimisation.

Keywords: wind power; electric energy market; frequency regulation market; clearing model.

DOI: 10.1504/IJCSM.2025.151195

International Journal of Computing Science and Mathematics, 2025 Vol.22 No.3, pp.284 - 310

Received: 28 Apr 2025
Accepted: 19 Sep 2025
Published online: 16 Jan 2026 *

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