Nodal pricing of power balance control services in electrical power systems

In this paper we formulate the problem of economically optimal and reliable spatial distribution of power balance ancillary services in electrical power networks. Furthermore, we propose a novel price-based (market-based) approach for scheduling of the control services in which we explicitly take into account limited capacity of transmission network. A novel notion of nodal pricing for power balance control services is introduced while constructive solution for calculation of nodal prices is presented.