Core Viewpoint - The optimization of the auxiliary service market's category configuration and trading mechanism is crucial for ensuring the stability of the power system and supporting the green energy transition in China [1] Group 1: Definition and Current Status of Auxiliary Services - Electric auxiliary services are essential for maintaining the safe and stable operation of the power system and ensuring power quality [2] - Auxiliary services are categorized into three main types: active balancing services (frequency regulation, reserve, peak shaving), reactive balancing services (voltage regulation), and recovery services (black start, stability control, load control) [2] - The global auxiliary service market is highly concentrated, with major operators like PJM, ERCOT, CAISO, ISO-NE, and Elia accounting for approximately 21% of the global market [3] Group 2: Development of China's Auxiliary Service Market - China's auxiliary service market is rapidly advancing due to the demand for large-scale renewable energy integration, transitioning from a planned model to a market-oriented trading system [4] - As of now, 16 provincial peak shaving markets, 15 provincial frequency regulation markets, and 2 provincial ramping markets have been established [4] Group 3: Challenges in the Auxiliary Service Market - There is a lack of standardized definitions for auxiliary service types across different regions, leading to obstacles in coordinated development [5] - The decoupling of auxiliary service markets from the energy market's clearing mechanisms results in inefficiencies in resource allocation [6] - The existing auxiliary service offerings are relatively limited, with a structural imbalance in service types [7] - The participation of flexible resources in auxiliary services is insufficient, as market mechanisms often segregate different types of resources [8] Group 4: Policy Recommendations for Market Development - It is essential to promote unified top-level design and implementation details for the auxiliary service market to enhance the overall adjustment capacity of the power system [9] - The integration of auxiliary service and energy markets through coordinated clearing mechanisms is crucial for improving market efficiency [10] - Regions should explore new types of auxiliary services tailored to their specific energy structures and load characteristics [11] - Market mechanisms and pricing models should be improved to facilitate the participation of flexible resources [12]