DER Participation in Ancillary Services Market: An Analysis of Current Trends and Future Opportunities

In an effort to push for low-carbon transition, national governments and regulatory authorities are working define market structures legislative frameworks able effectively support the spreading of electricity production from renewables. To this purpose, opening Ancillary Services Markets (ASMs) Distributed Energy Resources (DERs) plays a key role. However, pricing schemes rules in place (e.g., incentives) can act as barrier supply regulation services by small-sized renewable-based power plants. context, present work evaluates economic opportunities DERs provided provision tertiary reserve balancing control Italian ASM. The research is carried out through collection processing price data gas markets over 4 years (2019–2022). Considering reference architecture where DER units bid on Balancing Service Provider, potential revenues ASM non-programmable or partially programmable unit compared earnings expected conventional plant order highlight whether unfair competition represent barrier. Then, possible evolutions current remuneration analyzed, evaluate they be better integration. From analysis, it emerges that, even if negative prices could useful increase competitiveness RES-based plants downward regulation, loss incentives deterrent offering DERs. Therefore, other options, such retention case also needed.