Ancillary Services / MSD
Today's liberalized electricity markets do not only allow trading electric energy. They also allow for providing grid stabilizing measurements – the so-called ancillary services– from independent power providers.
In Italy, the TSO Terna is responsible for real-time balancing between feed-in and consumption. In order to provide this service it organizes a dedicated market for the supply of ancillary services, the “Mercato dei Servizi di Dispacciamento, (MSD)”.
Already set the course with the Virtual Power Plant Next Pool for an updated MSD Market Design that will soon offer new revenue streams for your renewable generation asset.
In order to integrate decentralized power producers the MSD participation criteria are about to be modified in the coming months.
This will enable small-scale units to participate – this will even include non-controllable renewable sources such as PV and wind. It will be also possible to aggregate those units in a so called Virtual Power Plant (Unità Virtuali d’Aggregazione).
Single units aggregated in a Virtual power Plant (VPP) such as the the Next Pool will facilitate a certain amount of their power production. This amount will be individually agreed upon in the contract between the asset owner and Centrali Next. this way, VPPs empower the flexibility of various units and offer it as if they were one single power plant. Accepted offers will be remunerated in a “pay as bid” fashion. For each of the VPP’s accepted offers, units will be dispatched and will be paid according to their provided services.