Ancillary Services

In order to ensure that the demand for electrical energy is met in real time, ancillary services are specialized services and tasks that help grid operators maintain a dependable electricity system. They support and assist the continuous flow of electricity. The increasing penetration of variable renewable energy…
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Auctions and Payments for ancillary services

Ancillary services auctions are a mechanism used by electricity grid operators to secure the necessary resources to maintain a stable and reliable power grid. Ancillary services auctions allow grid operators to competitively procure these services from a variety of providers, including traditional power plants and…
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Automatic Frequency Restoration Reserve (aFRR)

aFRR is a process for restoring the frequency and power balance in the power grid. It is done by changing the active power of an energy asset with a ramp-up time to full activation (FAT) of up to 5 minutes with automatic activation.
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Balance Responsible Party (BRP)

The main role of the balance responsible party (BRP) is to maintain equilibrium between supply and demand on the energy grid. If actual consumption or production differs from the forecast, imbalances occur that must be corrected due to the unique nature of electricity, which cannot be easily stored. The BRP is…
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Biogas Power Stations

Biogas plants are the perfect candidate for ancillary services. They have variable speed turbines, a constant supply of gas as well as their own storage. And they don't rely on gas imported from abroad, instead, the gas is generated on-site thanks to anaerobic digestion. This makes it a climate and politically…
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Combined Heat and Power (CHP)

Combined heat and power (CHP) systems are designed to be highly efficient as they capture and utilize the heat that would otherwise be wasted in traditional power plants. CHP systems can be fueled by a variety of sources, including natural gas, biogas, and biomass, and can be used in a variety of applications,…
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Demand Side Response (DSR)

Demand side response (DSR) is a set of measures that allow electricity consumers to adjust their energy consumption in response to changes in supply or price. By participating in DSR programs, consumers can shift their electricity use to times of day when power is more abundant or less expensive, or reduce their…
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Dispatching Power Plants

One of the fundamental aspects of the power system is the fact that energy cannot be easily stored for later use like other commodities. Therefore, the power grid must be continuously adjusted in order to meet the demand for electricity. This process is called, "dispatch" of power plants.
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Distributed Energy Resource Management Systems (DERMS)

Distributed Energy Resource Management Systems (DERMS) are advanced software systems that are used to manage the operation and integration of distributed energy resources (DERs) into the electricity grid. DERs are small-scale, decentralized energy sources such as solar panels, wind turbines, and energy storage systems…
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Distributed Energy Resources

Distributed energy resources, or DERs, are small-scale power supply or demand resources that are connected to the grid. They are power-producing assets that can be used alone or in tandem to provide value to the network. They are becoming a larger and more essential part of the energy system as they improve energy…
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Electricity Markets: A Comprehensive Guide

We can compare the electricity market to a bustling bazaar, where buyers and sellers come together to negotiate the price and quantity of goods. Like any other market, the electricity market operates on the basic principle of supply and demand. The electricity produced by power plants must match the amount consumed by…
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Electrification is the process of replacing the use of fossil fuels with electricity as a source of energy in various applications. This can involve switching from fossil fuel-based heating systems to electric heating, or replacing gasoline-powered cars with electric vehicles. Electrification is often promoted as a…
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Frequency Containment Reserve (FCR)

Frequency Control Reserve (FCR) is a type of ancillary service that is used to maintain the stability and reliability of the electricity grid. Also known as primary control reserve, it is activated when the frequency of the grid deviates from its normal operating range. In Europe, the TSO operators must maintain a…
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Frequency Regulation

Maintaining the system's frequency at 50 Hertz is critical. Every generator in a large power grid must spin at the same speed or the whole system might collapse. The grid will become unstable if the system's frequency differs slightly from 50 Hz. In those situations, power grid officials use frequency regulation to…
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How does a Virtual Power Plant make money?

This article describes how a virtual power plant creates value by optimizing connected devices. This optimization includes mechanisms like aggregating flexible energy, forecasting and trading, better managing renewable energy sources, and utilization of demand-side response.
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Manual Frequency Restoration Reserve (mFRR)

mFRR is a process for restoring the frequency and power balance in the power grid. It is done by changing the active power of an energy asset with a ramp-up time to full activation (FAT) of up to 12.5 minutes with manual activation.
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Merit Order

Merit order is a ranking system used to determine the order in which different sources of electricity should be used to meet demand. It is based on the marginal cost of each source, with the lowest cost sources being used first. This system optimizes the use of different power plants and resources, such as renewable…
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Power Purchase Agreements PPAs

A power purchase agreement (PPA) is an agreement between two parties to buy and sell power at a fixed price for a set period of time. PPAs are used to secure a long-term electricity supply and provide a stable revenue stream for the generator, while also giving the buyer a predictable electricity cost. PPAs provide a…
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Smart Grid

The smart grid is a reimagining of traditional electrical grids. It involves improved use of digital communication to gather, distribute, and manage the operation and maintenance of the grid. Smart grids enable two-way communication between the utility and consumers, allowing for more efficient use of electricity and…
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The practice of trading power between participants in the electricity sector is referred to as power trading. Depending on the market design, various types of power trading are accessible, from short-term spot markets to long-term over-the-counter markets. Before it is delivered to end customers, these markets allow…
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Virtual Power Plants

A virtual power plant (VPP) sometimes referred to as a flexibility aggregator is a cloud-based energy system that aggregates the capacities of different distributed energy resources into a single combined resource in order to complement power generation, as well as trading or selling power on the electricity market. 
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What is electricity?

Civilization relies on electricity daily, and we think of it mainly as a stream of energy flowing through the wiring to power outlets that allows us to light our homes or cook our meals. What is electricity, and where does it come from? In this article, we'll examine the basic concepts and units of measurement and…
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