Long-term price scenarios of frequency regulation services

The project aims to increase the knowledge about future reserve markets and generate price scenarios for frequency regulation services towards 2050. The results will support investment decision and business model innovation for new energy solutions e.g. electrolyzers for hydrogen production, battery storage, heat pumps, EVs.

The transition towards 100% renewable electricity production brings challenges for system balancing. Meanwhile, the compensation for providing frequency regulation services is considered as a potential revenue stream for flexible energy assets. A difficulty is to estimate how much benefits could be gained from the reserve markets and whether it can efficiently recover the investment cost.

There is a lack of thorough scenario study for the reserve markets which can be used as valid inputs. The project will fill the research gap with a long-term analysis of reserve markets, considering the future changes in the system condition and market design.