In this study, we examine the arrangements for and experiences of end-use loads providing ancillary services (AS) in five electricity markets: Australia, the United Kingdom (UK), the Nordic market, and the ERCOT and PJM markets in the United States. Our objective in undertaking this review of international experience was to identify specific approaches or market designs that have enabled customer loads to effectively deliver various ancillary services (AS) products. We hope that this report will contribute to the ongoing discussion in the U.S. and elsewhere regarding what institutional and technical developments are needed to ensure that customer loads can meaningfully participate in all wholesale electricity markets.

The Demand Response Spinning Reserve project is a pioneering demonstration of how existing utility load-management assets can provide an important electricity system reliability resource known as spinning reserve. Using aggregated demand-side resources to provide spinning reserve will give grid operators at the California Independent System Operator (CAISO) and Southern California Edison (SCE) a powerful, new tool to improve system reliability, prevent rolling blackouts, and lower system operating costs.