Definition: Reduced Ancillary Service Cost
Reduced Ancillary Service Cost
Ancillary services are necessary to ensure the reliable and efficient operation of the grid. The level of ancillary services required at any point in time is determined by the grid operator and/or energy market rules. Ancillary services, including spinning reserve and frequency regulation, could be reduced if generators could more closely follow load; peak load on the system was reduced; power factor, voltage, and VAR control were improved; or information available to grid operators were improved.