Joint Oscillation Damping and Inertia Provision Service for Converter-Interfaced Generation

As renewable generation becomes more prevalent, traditional power systems dominated by synchronous generators are transitioning to systems dominated by converter-interfaced generation. These devices, with their weaker damping capabilities and lower inertia, compromise the system's ability to withstand disturbances, pose a threat to system stability, and lead to oscillations and poor frequency response performance. While some new converter-interfaced generations are capable of providing superior damping and fast frequency control, there is a lack of effective measures to incentivize manufacturers to adopt them. To address this gap, this paper defines the joint oscillation damping and inertia provision services at the system level, seeking to encourage converter-interfaced generation to provide enhanced damping and fast frequency response capabilities. Our approach is anchored in a novel convex parametric formulation that combines oscillation mode and frequency stability constraints. These constraints ensure a sufficient damping ratio for all oscillation modes and maintain transient frequency trajectories within acceptable limits. They are designed to integrate smoothly into various operational and planning optimization frameworks. Using this formulation, we introduce a joint service for oscillation damping and inertia provision based on a cost-minimization problem. This facilitates the optimal allocation of damping and virtual inertia to converters, achieving both small-signal stability and frequency stability. Furthermore, we investigate the economic effects of introducing this service into a new ancillary service market, assessing its impact on system operations and cost-efficiency. Numerical tests highlight the service's efficacy in ensuring both small-signal stability and frequency stability, and offer insights into potential economic benefits.