Qinghai Frequency Regulation Ancillary Services: Mileage Bids 0-10 Yuan/MW, No Compensation If Composite Performance Below 0.5

Deep News
6 hours ago

According to information obtained, on October 9, the Northwest Regulatory Bureau of the National Energy Administration issued a notice soliciting public comments on the "Qinghai Power Frequency Regulation Ancillary Services Market Implementation Rules (Draft for Comment)." The key content related to energy storage is as follows.

Independent energy storage stations participating in the Qinghai power frequency regulation ancillary services market must have a charge-discharge power of no less than 10 megawatts and a continuous charge-discharge duration of no less than 2 hours. The Qinghai frequency regulation market operates through day-ahead declaration, day-ahead pre-clearing, intraday rolling clearing, and real-time dispatch. The formula for calculating the composite frequency regulation performance indicator K is: K = 0.2 x (3 x K1 x K2 x K3). The upper limit of K is tentatively set at 2. K1 is the regulation rate indicator, K2 is the response time indicator, and K3 is the regulation accuracy indicator. The declared price range for frequency regulation mileage is tentatively set at 0-10 yuan per megawatt. To prevent frequency regulation from causing significant changes in system power flow distribution, the total frequency regulation capacity awarded to independent energy storage shall not exceed 50% of the frequency regulation market capacity demand within the province. Frequency regulation service fees are calculated based on frequency regulation mileage, performance coefficients, clearing prices, and other factors. If the actual composite frequency regulation performance of a winning frequency regulation unit during the awarded period falls below 0.5, it shall be deemed as failing to provide effective frequency regulation service, and mileage fees shall not be compensated.

Market entities include power generation enterprises, electricity retailers, power users, and new types of business entities (including energy storage enterprises, virtual power plants, etc.). Thermal power units must have a single-unit capacity of no less than 100 megawatts; hydropower units must have a single-unit capacity of no less than 20 megawatts; independent energy storage stations must have a charge-discharge power of no less than 10 megawatts, a continuous charge-discharge duration of no less than 2 hours, and the capability to provide real-time feedback to the power dispatch机构 on state of charge (SOC), upward and downward frequency regulation capability, and other signals. The technical conditions for participating in the frequency regulation market for adjustable resources such as concentrated solar power units and virtual power plants will be determined later as circumstances permit. In the initial stage of the market, no composite frequency regulation performance entry threshold will be set, and all frequency regulation units may participate in the frequency regulation market. Subsequently, a composite frequency regulation performance entry threshold will be established based on market operating conditions.

Regarding transaction organization, the Qinghai frequency regulation market operates through day-ahead declaration, day-ahead pre-clearing, intraday rolling clearing, and real-time dispatch, with 15 minutes as one trading period and a total of 96 periods throughout the day. The composite frequency regulation performance indicator K is used to measure the overall performance of a frequency regulation unit in responding to a single AGC control instruction. The formula for calculating the composite frequency regulation performance indicator is: K = 0.2 x (3 x K1 x K2 x K3). The upper limit of the composite performance indicator K is tentatively set at 2. K1 is the regulation rate indicator, K2 is the response time indicator, and K3 is the regulation accuracy indicator. The power dispatch机构 shall revise the frequency regulation mileage bid of each frequency regulation unit based on its frequency regulation mileage bid and historical composite frequency regulation performance indicator Ki, using the revised value as the frequency regulation mileage ranking price, and rank them from low to high. Regarding frequency regulation mileage bid declaration, the minimum bid unit for mileage is 0.1 yuan per megawatt, and the declared price range is tentatively set at 0-10 yuan per megawatt.

Regarding market clearing, at the current stage, the Qinghai frequency regulation market and the spot market are cleared independently in steps. Once conditions are ready, joint clearing of the frequency regulation market and the spot market will be achieved. The Qinghai power dispatch机构 shall conduct clearing in accordance with the principles of "price priority, performance priority, capacity priority, and dispatch on demand," with the clearing price not exceeding 10 yuan per megawatt. To prevent frequency regulation from causing significant changes in system power flow distribution and affecting stable system operation, it is tentatively stipulated that the total frequency regulation capacity awarded to independent energy storage shall not exceed 50% of the frequency regulation market capacity demand within the province. Independent energy storage with a non-zero real-time charge-discharge plan shall, in principle, not change its current charge-discharge state when providing frequency regulation services.

Regarding cost transmission, frequency regulation service fees are calculated based on frequency regulation mileage, performance coefficients, clearing prices, and other factors. The electricity energy costs incurred during the provision of ancillary services by frequency regulation units shall be settled in accordance with electricity energy market rules. If the actual composite frequency regulation performance of a winning frequency regulation unit during the awarded period falls below 0.5, it shall be deemed as failing to provide effective frequency regulation service, and mileage fees shall not be compensated. In accordance with the principle of "whoever benefits bears the cost," and in light of the development of the electricity spot market, a frequency regulation cost transmission mechanism shall be established. Monthly frequency regulation mileage compensation fees shall be shared by all industrial and commercial users and the on-grid electricity volume of the generation side that has not participated in electricity energy market transactions. Entities with integrated generation and consumption, such as independent energy storage and virtual power plants, shall participate in the sharing or distribution of ancillary service costs on the generation side (user side) based on their on-grid (off-grid) electricity volume during the settlement period. The original text is as follows:

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