Limitations in the design of ancillary service markets imposed by communication network delays R. M. Hermans Student Member, IEEE, A. Jokie, Member, IEEE, P. P. J. van den Bosch, Member, IEEE, J. Front, Student Member, IEEE, I. G. Kamphuis, and C. J. Warmer

Real-tim e balancing of the European electricity grid will become increasingly dependent on market-based control mechanisms that are enabled by connecting millions of prosumers to an open communication network. The use of communication systems inevitably introduces delays in the energy balancing con­ trol loop, which could endanger market operation and stabilitof the electricity grid. By investigating the interaction between prlce­ based control algorithms for real-time balancing and information and communication technology, we aim to provide systematic design rules for unrestricted ancillary service markets. Index Terms-ancillary services, real-time balancing, price­ based control, two-sided markets, decentralized solutions, smart­ grid technologies