In IREMA, participation of all generators having more than 50 MW of generation capacity in providing primary control frequency service is mandatory. Currently, only Primary Control Frequency Service (PCFS) are structured in IREMA. To instantaneously balance the generation with the demand, PCFS, similar to other ancillary services in IREMA, are procured in non-competitive fashion. There are two kinds of payment for PCFS: fixed and variable payments. Both payments are made based on the performance factor. The performance factor results are received, analyzed, and passed to the billing office by the system operator. The fixed payments are based on the frequency control band width which has been acknowledged by the system operator. Activating the governor based on the request of the system operator, the generator is eligible to receive the variable payment. Currently, secondary frequency control instructions are under investigation.
Reactive and voltage control
Currently, this service is secured within system in an out-of-market approach and through the contracts between ISO and Generators. In IREMA, as many others markets, the procurement of reactive power are mandatory in obligatory band which is demonstrated for 0.9 lagging and 0.95 leading power factors. No payment is made in the obligatory band. In contractual band, which is defined over the obligatory band, there are two kinds of payments: capacity and operation payment. Regardless of the procured amount of reactive power, capacity payments are made based on the volume of the contractual band and a regulated rate which is determined by IERB. The payment associated to the operation is also based on the reactive power which is really absorbed or produced within the contractual band and in the real-time operation. There is also an extra payment for produced or absorbed reactive power over the contractual band and based on the demand of the system operator.
In order to incentivize the generators to fortify their capability in the network restoration operation, IREMA has stablished the black-start payments. This kind of payment is categorized as a kind of capacity payment. The payments are made based on the result of black start test which is occasionally done by the system operator. Among the factors constituting the black-start payment are the power plant priority quotient, the number of power plant's capable units acting in the network restoration operation, and the amount of realized availability in the real-time operation.