Nodal Ancillary Service Market
A nodal ancillary service market procures frequency regulation, spinning reserves, ramping reserves, and voltage support at specific nodes or zones, reflecting local transmission constraints. Unlike zonal procurement, nodal markets settle services at locational prices, signaling where flexible capacity is most valuable. This granularity becomes essential as renewables cluster and congestion isolates portions of the grid.
Operators run co optimized auctions for energy and ancillary services, simultaneously respecting transmission limits so that reserves are deliverable where needed. Resources must meet telemetry, ramp rate, and performance testing requirements to participate. Settlement statements include locational make whole provisions and performance penalties.
Nodal ancillary service markets enable storage, hybrid plants, and demand response portfolios to capture revenue in areas where energy prices alone may be weak. They also provide transparent signals that inform transmission planning and grid enhancing technology deployment.
Policy makers monitor nodal ancillary prices to assess whether scarcity pricing and capacity markets are aligned, and whether new products such as fast frequency response or reactive power support should be introduced.
Technical Details
- •Co optimizes energy and ancillary services with transmission constraints
- •Settles at locational clearing prices reflecting congestion
- •Requires high speed telemetry and performance validation
- •Supports participation from storage, hybrids, and aggregated DERs
- •Provides data for transmission planning and market design evaluations
Why It Matters
Locational ancillary revenues often make the difference between marginal and bankable storage projects. Tera captures nodal ancillary price histories, qualification requirements, and clearing volumes so developers can model multi product revenue stacks with confidence.
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