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The electric power system is rapidly transforming to address the urgent need for decarbonization and combat climate change. Integration of renewable energy sources into the power grid is accelerating, creating new challenges such as intermittency and uncertainty. To address these challenges, this paper proposes a new design of automatic generation control (AGC) ancillary service cost allocation based on the causer-pays rule. The proposed design treats reserves as inventory and aims to minimize them by allocating costs among consumers based on the causative factors for AGC operation. Two cost-allocation methods based on the causer-pays principle are introduced. The first method distributes costs according to the changes in loads causing ancillary service operation, while the second method considers opportunity costs. The case study on the IEEE 39 Bus System demonstrates that the proposed methods incentivize consumers to minimize volatility, resulting in reduced reserve requirements for system operation. In particular, the opportunity cost-based approach encourages loads and variable renewable energy (VRE) to actively reduce volatility, resulting in more efficient power system operation. In conclusion, the novel AGC ancillary service cost allocation methods offer a promising strategy for minimizing spinning reserves, increasing the power system's efficiency, and incentivizing consumers to actively participate in frequency regulation for a more sustainable and reliable electricity market. [ABSTRACT FROM AUTHOR]

Frequency droop control is a simple and effective frequency control method. However, it is not appropriate as a primary frequency control for microgrids with energy storage systems and voltage source converters (VSCs) owing to their slow response speed. In addition, it is difficult to determine the grid balance only with frequency deviation. In this paper, a new converter‐fed microgrid primary frequency control method based on the estimated active power imbalance for fast response and less variability in the transmission system is proposed. The active power imbalance is estimated via frequency deviation, frequency drop speed and the modified swing equation. The estimated imbalance indicates the status of the power imbalance more quickly and accurately than the frequency deviation. The proposed method does not require communication devices, responds quickly to frequency drops, and prevents unnecessary operation of the grid‐connected VSC because it uses the estimated imbalance instead of the frequency or angle for droop control. Simulation results show that the proposed method is significantly faster than frequency droop control methods, improves the rate of change of frequency and frequency nadir and reduces variability in the transmission system. [ABSTRACT FROM AUTHOR]

With the increasing number of embedded high‐voltage DC (HVDC) projects in AC systems, there is growing research interest in controlling the operating point of the HVDC in real time. This real‐time operation system requires the AC system information to be continuously updated, which involves practical challenges such as the burden of communication. To mitigate this problem, this paper proposes a novel technique to screen the AC system monitoring area for the efficient operation of the embedded HVDC. The screening algorithm determines the monitoring area by HVDC sensitivity analysis using the power transfer distribution factor. Then, a reliable and efficient grid operation is enabled using the limited data obtained from the determined area. The proposed methodology is verified using a Korean power system with multiple HVDCs. The effectiveness and advantages of the proposed technology are verified by comparing the results obtained using the system‐wide data with those obtained from the monitoring area. [ABSTRACT FROM AUTHOR]