One of the fundamental roles of a system operator is to maintain frequency in a narrow band around 50 Hz or 60 Hz. This is accomplished by constantly balancing generation and load. In pool based markets like South Korea and Singapore, majority of the balancing task is carried out through energy market dispatch. However, the market based dispatch alone does not ensure that appropriate resources are available to balance the generation and load. Consequently, the system operator must schedule enough operational reserves to cover unexpected events and variability. Historically, in many markets around the world, the characteristics of operational reserves have been based on the capabilities of conventional steam generation units, not on the fundamental needs of the power system. Given the inflexibility of steam generators, the operational reserves have tended to be 'spinning', so as not to compromise on the reliability of the system. But the advent of technologies with capability of instant start and fast ramp-up has made possible the concept of rapidly despatchable, non-spinning reserves which assure equal reliability. Markets are increasingly viewing this option as it brings about a reduction in system operating and wholesale electricity costs. In this paper, we will present the results of a recent study which analyzed the technical feasibility of non-spinning vs. spinning reserves in a European power system. We will apply the learning to demonstrate the value of increasing amount of non-spinning reserves in pool based electricity markets of South Korea and Singapore. The value analysis for both the markets will be based on merit-order dispatch and technical characteristics of typical spinning-reserve providers. The results for South Korea and Singapore will include, technical feasibility of non-spinning reserves, potential fuel savings due to increasing amount of non-spinning reserves, and impact on electricity wholesale price.
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