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This article examines the mechanisms for cross-border interchange of the regulating reserves (RRs), i.e., the imbalance-netting process (INP) and the cross-border activation of the RRs (CBRR). Both mechanisms are an additional service of frequency restoration reserves in the power system and connect different control areas (CAs) via virtual tie-lines to release RRs and reduce balancing energy. The primary objective of the INP is to net the demand for RRs between the cooperating CAs with different signs of interchange power variation. In contrast, the primary objective of the CBRR is to activate the RRs in the cooperating CAs with matching signs of interchange power variation. In this way, the ancillary services market and the European balancing system should be improved. However, both the INP and CBRR include a frequency term and thus impact the frequency response of the cooperating CAs. Therefore, the impact of the simultaneous operation of the INP and CBRR on the load-frequency control (LFC) and performance is comprehensively evaluated with dynamic simulations of a three-CA testing system, which no previous studies investigated before. In addition, a function for correction power adjustment is proposed to prevent the undesirable simultaneous activation of the INP and CBRR. In this way, area control error (ACE) and scheduled control power are decreased since undesired correction is prevented. The dynamic simulations confirmed that the simultaneous operation of the INP and CBRR reduced the balancing energy and decreased the unintended exchange of energy. Consequently, the LFC and performance were improved in this way. However, the impact of the INP and CBRR on the frequency quality has no unambiguous conclusions.

Evaluation of the Simultaneous Operation of the Mechanisms for Cross-Border Interchange and Activation of the Regulating Reserves